Introducing Algorand Co-Chain

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August 25, 2020 by
Introducing Algorand Co-Chain

Algorand co-chain is a unique feature of Algorand blockchain. This special version is not only permissioned, but it also enjoys a lot of benefits from every modification or improvement on the Algorand blockchain as a whole. It allows for layer-1 smart contracts, the decentralization that is very easily customized and finality on transactions. Lastly, it allows for interoperability with other co-chains.

Let’s break this down…

Now, just by including permissions into the architecture of Algorand blockchain, some special properties are added into the chain such as layer-1 smart contracts and transaction finality. These are vital characteristics of a standard blockchain whether they are permissioned, permissionless, public, or private.

Algorand co-chain achieves weightless decentralization by operating with a consensus protocol that is not limited to just a few validators.

It can scale to a host of validators while smoothly allowing it to expand the set of validators.

With Algorand co-chain, consistent innovation and necessary upgrades can take place thanks to an automated feature of permissioned chains. This permission allows it to supplement the co-chain with improvements anytime they’re introduced to the Algorand blockchain.

Interoperability in the Algorand co-chain simply allows users to not only interact within set down limits but with the world at large. This means that users from a permissioned chain set up by institutions in energy can easily interact with users from a chain in information technology.

In other words, Algorand co-chain is permissioned chains that give room for secured interoperability with all permissionless chains within the Algorand blockchain and co-chains as well.

Why Algorand Co-chain?

The Algorand blockchain is great. But it does have its flaw just like any other blockchain.

One of them is the absence of a clear title in the co-chain. The other is the absence of security. What do we mean by this?

Clear title: The absence of clear title is generally caused by protocols that work only with user x and y as well as their blockchains, A and B respectively. However, another problem also follows this circumstance. These blockchains are not only private but permissioned. The only information members in this chain are allowed to know is that original assets have been exchanged between user x and y.

Others include the event of ownership of by a member of chain A, In the case of becoming corrupt, no protocol prevents y from exchanging or selling b for other assets.

Security: one common problem of blockchain and its interaction is asset exchange which can be rather difficult due to the protocol involved. For instance, asset exchange when is a member of co-chain with a member of co-chain B. This is not a problem if and belong to a permissionless chain. On the contrary, the hash and time lock protocol in this scenario makes it a huge obstacle.

Structure of the Algorand Co-Chain

. Interoperability

In Algorand blockchain, A and B are separate co-chains and we will learn just how they work. Asset a, in particular, is organized or controlled by what we call a public key tx in A. The A co-chain has a private key known to x while asset b is controlled by a private key in B. This private key is known to y. When it comes to interoperability, how are assets exchanged?

Through transfers from a to MAIN with proof of these transfers. This transaction takes place in chain Atx. On the other hand, transfers in chain B, ty are usually from b to MAIN. Using atomic swap, exchange a and b can now take place in MAIN tx and ty. Lastly, tx transfers b to A and vice versa, also in MAIN

. Preamble

This is the protocol involved in denoting Algorand’s MainNet by MAIN. In this case, the MainNet is not only permissionless but public. It maintains an updated list of C’s ASSETS and VALIDATORS. When any co-chain is formed, both lists may be added in MAIN to C’s genesis block. As time goes on, ASSETS and VALIDATORS by C are updated in MAIN transactions. These transactions are signed by C’s latest list of validators.

Asset transfers from Algorand Co-Chain to the main chain

Asset transfers are mostly conducted via public keys. For instance, a user x wishes to transfer an asset a using public key tx to MAIN. A user can do this for a variety of reasons; a common one is auctioning. This user can decide to auction a on MAIN instead of A. auctioning on MAIN allows user x to receive bids from members A, users of MAIN as well as other co-chains. Transferring coins to MAIN for auction is a simple and easy process.

. Asset transfers from Algorand main chain to Co-Chain

After conducting a transaction in MAIN, a user may want to transfer the proceeds of their auction back to A. How is this carried out? Through an authorized digital signature of tx. This signature enters a new block of MAIN which is permissionless, allowing validators of A to see the digital signature in a block of MAIN. They may also be provided with a failsafe proof of appearance by tx. Conventionally, this transaction is conducted if tx, is a public key of MAIN and A,tx.

Algorand co-chain is more or less a unique opposite of the Algorand blockchain. One of the primary benefits of any permissioned blockchain is the ability to secure all transactions from outsiders.

Where a permission less Algorand blockchain can participate in consensus protocol without limitations, the permissioned version of Algorand sometimes requires an enterprise E to use the given pool of 10B tokens strictly for consensus and then partition it among its own chosen set of validators. This partitioning among validators, V, can be whichever way it wants.

Algorand co-chain gives users the option of a secure, granular platform that allows them to assign different weights to different validators. On the Algorand co-chain, participants can transact with efficiency, transparency, and security.

 

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