Algorand upgrade could increase speed and cross-chain transaction capability

Quick Take

  • Algorand announced a new upgrade launching state proofs, which could increase its cross-chain communication and security.
  • Algorand stated its TPS could increase from 1,200 to 6,000.
  • The launch of state proofs is geared toward building out secure, cross-chain transactions using the Algorand blockchain.

Algorand, a proof of stake Layer 1, has announced a new upgrade to its protocol that could boost its transactions per second (TPS) and cross-chain communication security via state proofs.

Algorand’s state proofs are an interoperability standard that aims to securely connect Algorand to other blockchains. State proofs provide an interface any proof of stake blockchain can use for cross-chain communication and transactions.

Algorand claims this upgrade increases the network TPS from 1,200 to 6,000.

While an increase in TPS could be a positive upgrade, more details are needed to understand what impact it will have for users and protocols.

TPS is a measure of speed and is not correlated to finality, which is when a transaction is processed and finalized on the blockchain. Finality is important for security in that it guarantees the transaction cannot be reversed and must be considered when assessing TPS in blockchains.

Algorand’s Chief Product Officer Paul Reigle believes that state proofs are “game-changing” for secure blockchain interoperability.

Algorand’s founder Silvio Micali seconded this, highlighting its importance that “decentralization does not need to come at the cost of performance or security," and his belief that state proofs are a “critical security feature for communication between networks.”

Security for cross-chain messaging and transactions is of heightened importance, with several hacks occurring over the past year.

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