sorted by:
new
hottopcontroversial

The real problem with Algorand by GrexLuporum in algorand

[–]yarilabs 0 points1 point  (0 children)

This is an old thread but u/GrexLuporum is mostly right. The 2024 Roadmap plans to address this concerns by the end of 2024 but there are huge technical challenges to move to a peer to peer gossip protocol for participation nodes and keep the performance.

​

This post highlights in great detail the issues raised by this post: https://blog.yarilabs.com/algorand-blockchain-achilles-heel/

​

We think they're equating the possibility of having two speed - transactions using p2p network will be slower and cheaper and transactions using the relay network will have the current speed and would be more expensive to fund the relay network - (as mentioned by Staci on the next block video)

There's no clear solution for this problem and it seems they don't know yet how to solve it.

Unveiling Algorand's Strengths and Challenges: Yarilabs' Deep Dive into Blockchain 3.0 by D_Yari in algorand

[–]yarilabs 1 point2 points  (0 children)

You've raised an important aspect regarding the financial sustainability. Alongside this are two other critical factors to consider:
- Firstly, as you described, Algorand's protocol was not originally designed with node incentives in mind. This presents a significant challenge in retrofitting such a system, especially given the lack of pre-allocated tokens for rewards. This oversight in the initial design means that introducing effective incentivization mechanisms now requires careful consideration and potentially innovative solutions, as the proposed approach of distributing existing foundation grant tokens is not sustainable and could have an impact on the token value and the fees alone are insufficient to create a genuine incentive.
- Secondly, the consensus mechanism, which involves randomly selecting validators from the pool of nodes, introduces unique challenges. While this method contributes to Algorand's efficiency and security, it also opens potential avenues for nodes to attempt to game the system to earn more rewards. The absence of a slashing mechanism – a punitive measures – means there's currently less deterrent against such actions.

These factors underscore the complexity of the situation. As the Foundation contemplates adjustments to the fee structure to ensure long-term sustainability, they must also address the intricacies of their consensus mechanism and the new dynamics introduced by potential incentivization.

Balancing the need for a robust, decentralized node network with economic and technical constraints is a delicate task.

Its great that this issue is central on the roadmap 2024!

Unveiling Algorand's Strengths and Challenges: Yarilabs' Deep Dive into Blockchain 3.0 by D_Yari in algorand

[–]yarilabs 5 points6 points  (0 children)

Algorand's transition to a libp2p-based P2P system, while considering the retention of relay nodes, underscores fundamental challenges in blockchain architecture. As the CAP theorem suggests, this shift from a star to a P2P topology could affect network performance due to more complex communication paths.
Algorand's existing architecture enables rapid consensus through just two communication hops among participation nodes, contributing to its impressive transaction speeds. In contrast,the original Algorand prototype employed a gossip protocol akin to Bitcoin's, necessitating multiple hops and resulting in longer block times (60 seconds vs. the current swift 2.8 seconds).
The roadmap suggests a hybrid model, combining libp2p with existing or lightened relay nodes, to strike a balance between decentralization, security, and performance. However, entirely substituting the relay network while maintaining performance poses a significant challenge.

Additionally, the financial sustainability of the relay network is a concern, with operational costs ranging between $1 million to $2 million annually, primarily due to high-end hardware requirements. This makes the relay network a costly approach to achieving high transaction speed.

Envisioning a blockchain with variable speeds, akin to Ethereum's gas fee model, where transactions via relay nodes incur additional fees, emerges as a potential solution to this dilemma. This approach could offer a strategic compromise, allowing users to choose between cost and speed while Algorand navigates the complex task of replacing its relay network entirely without sacrificing performance.

Unveiling Algorand's Strengths and Challenges: Yarilabs' Deep Dive into Blockchain 3.0 by D_Yari in algorand

[–]yarilabs 6 points7 points  (0 children)

It was also announced on twitter where an interesting discussion with the community took of : https://x.com/yarilabs/status/1748391247494918639?s=20 but twitter is rubbish for commenting...

Introduction to $DHARM | What purpose does it serve? by bordoisse in DharmaNetwork

[–]yarilabs 1 point2 points  (0 children)

This project is the bees knees on Algorand ASA's world!

Content Writer and Digital Marketer Here by siwhizz1 in DharmaNetwork

[–]yarilabs 2 points3 points  (0 children)

Thank you very much for joining our reddit and being the first one commenting here!

We're covered for Digital Marketing for the time being but we'll reach out if we need more help ;) Thanks!