Proof-of-Stake (PoS) blockchain protocol Algorand is gearing up to mark its entry in the burgeoning DeFi space.
Algorand Wants a Slice of the DeFi Pie
Days after rival blockchain network Qtum (QTUM) announced its plans to enter the DeFi landscape, it is now Algorand that is foraying into the nascent and promising space.
According to an announcement made today, Algorand Foundation and Algorand Inc. have launched comprehensive smart contract capabilities that will allow developers to create DeFi solutions and decentralized apps (dApps) on the Algorand protocol.
Notably, developers will be able to leverage Algorand’s tech prowess to build solutions and dApps “that can scale to billions of users, tens of millions of daily transactions, with negligible transaction fees.”
Unlike the vast majority of first-generation blockchains, Algorand was designed from scratch to power complex applications that require speed, scale, finality, and security, the announcement reads.
The highlight of today’s announcement is the addition of stateful smart contract functionality into layer-1 to join existing capabilities such as Atomic Transfers, stateless smart contracts, and Algorand Standard Assets (ASA1s).
Focus on Scalability
Per the announcement, Algorand’s latest upgrade will successfully address the existing bottlenecks that have, to date, hindered the mainstream adoption of blockchain technology.
The DeFi-focused upgrade will provide developers opportunities to build robust and sophisticated DeFi solutions without having to worry about scalability and other such problems.
Commenting on the development, Silvio Micali, Founder, Algorand, noted:
“DeFi gives the world access to an essentially unlimited number of financial products and services. It’s important for the new generation of dApps not to be stalled by the shortcomings of the first-generation blockchains.”
“Algorand’s protocol serves as a solid foundation to power truly frictionless applications, and our approach to smart contracts makes them high-performing and functionally advanced enough to rival today’s existing financial services.”
Everyone Wants to DeFi
The announcement by Algorand is just the latest to highlight the growing popularity of the DeFi space in the crypto industry that has managed to attract numerous blockchain projects to date.
Earlier in July, BTCManager reported that IOST had updated its H2 2020 roadmap that heavily focuses on the blossoming DeFi space for the remainder of the year.
However, not all is hunky-dory in this infant space as was evident from the spectacular fall of the Yam project.
Indeed, for all the potential DeFi offers, it requires a lot more time to be truly considered an alternative to the current CeFi dominated financial industry.