On Thursday, the Algorand Foundation has launched an update for its blockchain protocol.
Algorand has added features for decentralized finance (DeFi) and smart contracts to its Algorand 2.0. This is the largest expansion for the network, after its June 2019 launch. The company’s CEO Steve Kokinos said about the release:
“With this release, new features and simple developer resources enable new use cases and broader adoption of blockchain overall.”
Algorand Employees Were Talking about the Development for Months
The company’s employees have been sending hints about the new development for months. This is the first time Algorand is supporting smart contracts, which are contracts driven by code that tracks and executes the formal agreements’ terms over time. The ASC smart contracts from Algorand are different from the ones powered by other blockchains. This is due to the fact that Algorand has an in-house programming language that’s non-Turing-complete. The language is called Transaction Execution Approval Language or TEAL.
Algorand’s Technology is Quite Unique
Turing completeness is measuring how able a programming language is to simulate another language and to manipulate its instructions. While all programming languages are Turing-complete, Algorand’s isn’t. What makes TEAL different is a feature and not a bug, as it makes the contracts developed on it safer to execute and to write. However, it’s quite limited when it comes to functionality because it doesn’t support recursive logic.
On the other hand, this means increased security and a more direct path to make sure that ASC contract coders are not inadvertently losing assets. According to Hacker Noon, a smart contract can be more easily and rapidly checked for errors when it’s written in a programming language not based on recursive logic.
Additional Upgrades to Algorand 2.0
Algorand has also introduced a function for standard asset issuance (ASA), which brings more various tokenization features and is a powerful DeFi tool. On the foundation’s developer page, it’s being claimed that any asset can be stored on-chain and digitized with ASA. The company has also introduced the Atomic Transfers feature for batch transactions. This new tool allows users to perform the most complex token transfers, including account settlements and circular trades, with only one transaction.
It was mentioned that Algorand 2.0 doesn’t interfere with the company’s sharia compliance certification because its key features haven’t changed. The market cap of Algorand is $108 million, ranking the foundation on the 48th position in the largest blockchains list.