Thread by @foxriverdevops

you need to understand #Bitcoin #BTC first, to really understand #Algorand $ALGO 🎰 🎲 🤯

// a thread on why only randomness can bring decentralization and security in consensus

before we start: #Bitcoin $BTC and #Algorand $ALGO are completely different things: one is money, one is a high-tech digital asset and smart contract platform

El Salvador will be the first country that will introduce exactly that unique combo ✅

https://twitter.com/Algorand/status/1432738915325206545

what is #Bitcoin? you need to dig to a deep enough level to get the core:
- a distributed ledger
- PoW as a consensus mechanism

no one explains is better than @3blue1brown ⬇️

what we learn from the video is that #PoW Proof of Work is in its core a proof of randomness: a miner proves through WORK that he created a certain HASH that is only controlled by RANDOMNESS. that's the core idea of proof of work: I did some work under the condition of randomness

this simple but powerful idea is the core of what makes #Bitcoin decentralized: randomness applies to everyone - it's math - and no central entity can change that and take control over the system: let that sink in 🤯 randomness is the true key to decentalization!

now let's have a look why #Algorand actually applies the same core idea even though it is implemented in a completely different way. the most important aspect: #Algorand with the Pure Proof of Stake consensus differs immensly from bonded/delegated PoS like #Etherem 2.0 or others

I can't just claim anything and attach a "few" at the end of the line. first you have a source where this info is from: @silviomicali the OG of modern crypto

who's Silvio Micali? to sum it up: his ideas and innovations in #crypto are so powerful that all major L1 networks are using his protocols: ever heard heared of zero-knowledge proofs before?

https://twitter.com/foxriverdevops/status/1449804488873807875

#ALGORAND ➡️ ALGOrithmic RANDomness 🤯 relies in it's core on randomness: VRF (verifiable random function) in three different steps of the consensus mechanism

algorand.com/Algorand%20Pro…

#Algorand Pure Proof of Stake:
- block proposal ➡️ based on randomness
- soft vote ➡️ based on randomness
- block certification ➡️ based on randomness

mind-blowing: these steps are done for every single block again and again 🤯 everything is based on randmoness

best way to understand to core protocol is this video:

one high level of the 3 step again:

1. block proposal
2. block soft vote
3. block certification

developer.algorand.org/docs/get-detai…

now comes the best part: it's all based on what is #called cryptographic sortition™: "It allows a set of users to secretly select themselves to participate in Algorand’s consensus protocol, without them being known to anyone else" 🔐

this explains the power of the #Algorand token $ALGO: they are all equal and actually serve as lottery tickets for conensus: "an $ALGO, which is always governed by the same mathematical ballot as other ALGOs" 🎲 🎰

arringtonxrpcapital.com/wp-content/upl…

you often hear that #PoS Proof of Stake is more centralized than #PoW Proof of Work: for bonded/delegated Proof of Stake this more true to some extent, just look how big the barrier to entry is in some protocols: thousands of dollars to be a validator?

#Algorand is in its core designed around randomness 🎲 🎰 as we've seen and thereby is the closest thing there is next to #PoW regarding the consensus mechanism (premining of tokens aside)

https://twitter.com/foxriverdevops/status/1439099515995365376

this is the core idea of #Algorand: "individuals can acquire more coins, but they can never privilege one $ALGO against another" at the end of the day the power is in the hand of mathematical principles (VRF) for every single created block over and over...

now comes a secret power: the system is extremely open regading hardware requirements (minimal) and necessary stake (minimal), there's no slashing involved and you have user replaceability: come and go as you please all by design 🤯

"Without decentralization, we remain in the financial
system that already existstoday: exclusive and secretive"
—
Silvio Micali, Founder at #Algorand

tbstat.com/wp/uploads/202…

now back to #Bitcoin: why you cannot compare it to #Algorand: different purpose! #BTC was designed as peer-to-peer cash while #Algorand was designed as a cutting-edge smart contract and digital asset platform

bitcoin.org/bitcoin.pdf

to understand this we need to look what #Algorand has in it's layer 1 core protocol: powerful primitives for the future of finance #futurefi

important: all on L1 with the security and scalability of the core protocol and same decentralization!

https://twitter.com/foxriverdevops/status/1442435397720674306

you need to go through every single feature brief to understand how powerful the core L1 protocol actually is: full of #futurefi capabilities no other protocol has in this depth now⬇️

https://twitter.com/foxriverdevops/status/1448025168866070534

to bring decentralization to another level #Algorand also has on-chain governance by design: protocol upgrades will not be controlled by a central entity ⬇️

Pure Proof of Stake was designed by a Turing Award winner. @silviomicali has been researching #crypto cryptography and computer science at #MIT since 1983 🤯 the OG of modern crypto 🎲🔐🎲🔐

forbes.com/sites/steveneh…

the more you understand Pure PoS, the more you understand how decentralized #Algorand is by design: it's literally $ALGO rithmic RANDomness and pure math! more on: algorand.com @Algorand @AlgoFoundation - the future is on-chain and decentralized 🌎 🌍 🌏 🎰 🎲 🔐