Algorand Blockchain and its Different Types of Nodes
Tags: webdev, blockchain, algorand, discuss
Published: 2023-06-26 08:53:56

- [Table of Content](#table-of-content)
  - [Introduction](#introduction)
  - [What Is Algorand?](#what-is-algorand)
  - [Problems solved by Algorand](#problems-solved-by-algorand)
  - [What are Algorand's different types of nodes?](#what-are-algorands-different-types-of-nodes)
  - [Conclusion](#conclusion)
  - [Resources](#resources)

## Introduction

[Algorand](https://cointelegraph.com/learn/what-is-algorand) is a decentralized network, that aims to solve the “**blockchain trilemma**.” Algorand is a blockchain development platform. It aims to create a world where users can create and exchange value efficiently and securely. It enables users to create and host blockchain projects and cryptographic assets.  As a result, it directly competes with Ethereum. Additionally, the platform is carbon-negative, which means it has more carbon credits than it requires.

The Algorand platform is a cryptocurrency and digital asset as well. It processes transactions at a rate of 1,000 transactions per second. It also places a lot of emphasis on almost immediate finality.


## What Is Algorand?

[Algorand](https://algorand.foundation/algorand-protocol/about-algorand-protocol) (ALGO) is both a digital currency and a blockchain platform. The Algorand platform is designed to process many transactions quickly, similar to major payment processors like Mastercard or Visa. In addition, Algorand can host other cryptocurrencies and blockchain-based projects, making it a direct competitor to Ethereum. ALGO, the platform's native currency, is used to secure the Algorand blockchain and pay processing fees for Algorand-based transactions.

Since Algorand is an open-source blockchain, anyone can access and edit the platform's source code. Pure proof-of-stake (PoS), the operating protocol used by Algorand, selects network validators from the user base.

Algorand was founded and developed by Silvio Micali in 2017. Micali is an Italian computer scientist and a professor at MIT. His research focuses on information security and cryptography. He is also a recipient of the Turing Award for his work in cryptography. The total supply of ALGO is capped at 10 billion coins, with about 7 billion ALGO already circulating.

Algorand uses blockchain-based decentralization to create universal trust among unreliable parties.  The platform gives simple designs top priority when creating technology that can remove obstacles to prosperity. The Algorand network processes transactions, which are completed in 5–12 seconds. For instance, Ethereum can handle a fresh block of transactions every few seconds.

## Problems solved by Algorand

Algorand represents a groundbreaking advancement in blockchain technology, combining the scalability and permissionless features. This revolutionary approach brings forth numerous benefits. Decentralization and cryptographic tools form the foundation for building trust, ensuring the immutability of the shared ledger. 

In this network, every user has the opportunity to contribute to its security through consensus participation. Rather than being stored in a centralized location, digital assets are distributed across a global ledger, employing top-tier cryptography. 

Algorand's inclusive design allows for the seamless submission of new transactions and access to the complete transaction history, empowering users with the ability to transact with anyone worldwide nearly instantaneously. 

As a result, the computational cost of participating in the blockchain is minimized, translating into minimal transaction costs.

## What are Algorand's different types of nodes?

Relay nodes and non-relay nodes are the two different types of nodes that make up the Algorand network. Relay nodes are mostly utilized for communication routing to a collection of linked non-relay nodes. Relay nodes communicate with other relay nodes and route blocks to all connected non-relay nodes. Non-relay nodes can take part in consensus and connect only to relay nodes. Non-relay nodes may establish connections with a number of relay nodes, but never with other non-relay nodes.

In addition to the two node types, nodes can be configured to be archival. Archival nodes store the entire ledger, as opposed to the last 1000 blocks for non-archival nodes. Relay nodes are necessarily archival. Non-relay archival nodes are often used to feed an indexer that allows more advanced queries on the history of the blockchain.

Finally, a node may either participate in consensus or not. Participation nodes do not need to be archival. In addition, to reduce attack surfaces and outage risks, it is strongly recommended that participation nodes be used only to participate in consensus. In particular, participation nodes should not be relays. All node types use the same installation procedure. 

Click to [read more](https://developer.algorand.org/docs/run-a-node/setup/types/#:~:text=The%20Algorand%20network%20is%20comprised,all%20connected%20non%2Drelay%20nodes.) on node setup for a specific type and more information on the requirements for a few configuration parameters.


## Conclusion

Algorand, in my opinion, possesses the technical innovation necessary to produce a platform that offers decentralization, scalability, and security.  The first-of-its-kind, permissionless, pure proof-of-stake protocol from Algorand enables users to build opportunities and realize the potential of blockchain technology by supporting scale, open participation, and transaction finality.

## Resources
https://www.algorand.com/what-we-do/technology/algorand-protocol
https://algorand.com/technology/about-blockchain


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