How is Algorand Efficient as compared to other L1 and L2 blockchains

The development of the blockchain technology is undoubtedly one of the greatest inventions in the digital economy space. The blockchain in layman term is a decentralized, distributed, public ledger that records the source of a digital asset. In broader terms, it is a time-stamped series of immutable data records that are managed by a cluster of computers and not controlled by a single entity. Based on a peer to peer (P2P) topology, the blockchain allows data to be stored globally on thousands of servers with each block of data secured to other blocks using cryptographic principles that form chains, hence the name blockchain.

The application of the blockchain technology is extensive. The primary use of the technology today is as a distributed ledger for crypto currencies and stable coins. Apart from its use in the crypto world, the blockchain technology is applicable in blockchain based smart contracts, financial services, video games development and energy trading sector. Recently, it has been used in supply chain management and e-commerce sector. Research is also ongoing on the possible use of blockchains for voting, in the music world as well as in the development of domain names. 


The blockchain technology rests on network systems stacked in form of layer solutions. Now, there are two common layer solutions, the L1 and L2 layers with developers envisaging that other layers will follow soon.

Layer 1 or L1 is the underlying main blockchain architecture. Being the base layer, it is the strongest and most secure but less scalable layer. All base layer systems compete with gold as a proxy for their valuation and success metrics. Their design choices give priority to security over any other consideration. These choices include using proof-of-work as the general mechanism, having a fixed monetary policy, and having its database fully replicated throughout all nodes in the network. These base layer systems are programmable and much more socially scalable on a planetary scale.

On the other hand, Layer-2 (L2) is an overlaying network that lies on top of the underlying blockchain (L1). In the base layer systems, scalability is the big issue, with the systems only able to process paltry 15-20 transactions per second on average. To tackle these challenges, the Layer-2 technology was developed as an “off-chain” solution. Its main purpose is to scale blockchain transaction capacity while retaining the decentralization benefits of a distributed protocol. Layer-2 platforms process data in a way that reduces the burden the Layer-1 usually bear. By offloading transactions into L2 platforms, the L1 network can handle bigger transaction loads.

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Although the construction of L1 and L2 networks is changing blockchain technology, many blockchains still face major problems with potentially fragmented solutions. These problems include the challenge of integrating L1 and L2 networks into existing protocols as well as the problem of solving a measurable triangle. Scaling Trauma is a business that develops blockchain programs where it determines how they can improve their structure while balancing between these three spatial distribution structures, protection, and expansion. Most of these blockchains, such as Bitcoin, improve security and performance locally, while at the same time making mistakes in the balance.

However, scalability is a need of the hour. To solve this triangle, the Algorithm block chain created by the Touring Award winner Silvio Mikali developed a new protocol. These solutions are built. Algorithm Blockchain uses this protocol called Pure Source (PPOS) built into the Byzantine contract. Triangle and helps users build a platform they trust.

The Algorithm BPOS protocol helps to reach consensus and tolerate malicious users without a central authority. This allows Blockchain to effectively allow thousands of transactions in a short period of time.

Comparison based on efficiency

Another issue facing many L1 and L2 controls is the power allocation issue in some areas. In a central blockchain, a business creates a module, while each user in the module stores all the modules. This method is obviously effective, easy to use and ensures quick blockage. However, it requires strong, solid thinking. A medium-sized business should be honest about not seeing any users or offering the same new modules to all users. In addition, a medium-sized business can be easily compromised or suspended through service rejection and attacks. To meet this challenge, the new blockchains have used various power sharing methods, including power sharing, power allocation and power allocation. However, power-sharing mechanisms did not solve the challenge until Algorithm’s true decentralization system was developed.

In true Algorithm chains, each new module is created in a separate, new, randomly selected group of user set. In fact, selecting a group safely for all users may require a considerable amount of calculation and communication. The invention of the Algorithm solves the problem of secret choice, which means that the module’s selection rule enables the player to adapt. This unique asset makes the Algorithm’s protocol very protective against enemies that can successfully attack any user at any time. With these unique findings, the blockchain algorithm has revealed its diversity and is currently on the verge of becoming the world’s 1st blockchain series.