Algorand has once again proposed a major protocol upgrade that significantly expands the range of decentralized applications (DApps), decentralized finance (DeFi) solutions, and processes that can be built on the Algorand platform. With this new suite of features all built directly into Layer-1, enterprise-scale distributed apps can be created without sacrificing performance or security.
Scroll down for existing details on Algorand Standard Assets, Atomic Transfers, and read about the latest updates to our Algorand Smart Contracts in Layer-1 functionality.
In today’s economy, there remain many issues when it comes to the digitization of assets. These challenges include:
Asset tokenization on Algorand will solve these challenges and benefit from increased core security, simplified usage, and transaction finality on a high performance blockchain.
ASAs provide a standardized, Layer-1 mechanism to represent any type of asset on the Algorand blockchain. These can include fungible, non fungible, restricted fungible and restricted non fungible assets.
Role Based Asset Control (RBAC): Optional and flexible asset controls for issuers and managers for business, compliance, and regulatory requirements. This includes:
User Protections: Asset spam protection that prevents unknown assets that may have tax, legal, or reputational risk from being sent to users without their explicit approval (users must opt-in to accept new assets).
NON FUNGIBLE TOKENS
RESTRICTED FUNGIBLE TOKENS
RESTRICTED NON FUNGIBLE TOKENS
In a traditional economy, there exists a trusted or legal framework. On the blockchain, Atomic Transfers provide a trustless solution in Layer-1.
Atomic Transfers offer a secure way to simultaneously transfer a number of assets among a number of parties. Specifically, many transactions are grouped together and either all transactions are executed or none of them are executed.
Truly atomic, there is no need for escrow or reliance on hash time-locked contracts. This is a new way of technical execution of complex transfers that is smooth and fast.
With Algorand’s miniscule transaction fees, Atomic Transfers are incredibly low cost to execute.
Supports all Algorand assets (Algos and any Algorand Standard Asset) and allows for multi party transfers.
ASC1s are Layer-1 smart contracts that automatically enforce custom rules and logic, typically around how assets (Algorand Standard Assets or Algos) can be transferred. They are complex economic relationships made up of basic transaction primitives written in a new language called Transaction Execution Approval Language (TEAL) as well as PyTeal, a python language binding. Algorand has now updated the ASC1 functionality to include both stateless and stateful smart contracts.
This functionality enables exciting and innovative new ways to address existing inefficient and complex financial transactions. The addition of stateful smart contracts now delivers a full comprehensive set of layer-1 smart contract functionality.
In today’s economy, there are a range of existing transactions that rely on intermediaries to provide trust and execution. This leads to unnecessary delays and costs in the delivery to the consumer. Examples of these include:
With trustless execution on the Algorand blockchain, cost and risk are lowered while allowing for instant settlement of these contracts. Removing existing development barriers, Algorand’s Layer-1 solution solves a majority of use cases with unprecedented speed, less complexity and significantly lower costs.
Algorand will continue to innovate on ACS1s to further advance the capabilities of smart contracts.