Algorand to offer standardized asset creation, atomic transfers, and smart contracts to Dapps.
The Algorand Foundation has announced a protocol upgrade that expands the range of decentralized applications (Dapps) and processes that can be built on the Algorand platform.
Enterprise-scale Dapps can now be built on Algorand’s proof of stake blockchain without sacrificing performance. The update unlocks the ability to develop scalable blockchain-native solutions for real-world use cases. The following capabilities have been built directly into Layer-1: standardized asset functionality, atomic transfers, and stateless smart contracts.
These new features are intended to improve speed, scalability, and finality. They will enable a new range of Dapp use cases such as tokenization on the Algorand blockchain, simplified and expedited debt settlement, and efficient matched funding, and smart-contract based escrow accounts for crowdfunding or creating collateralized debt.
“Building decentralized financial applications requires the right foundational technology and vision,” said Steve Kokinos, CEO of Algorand Inc. “At Algorand, we’re committed to continuous innovation and the development of technology that solves real-world challenges. With this release, new features and simple developer resources enable new use cases and broader adoption of blockchain overall.”
As the infrastructure linking traditional finance with the DeFi ecosystem matures, its expected that new use cases and broader blockchain adoption will follow.
One example of this is the World Chess hybrid IPO. World Chess, which holds the broadcasting rights to the most recent World Chess Championship, has announced a hybrid IPO that includes a security token offering and a London Stock Exchange listing. Conducted via Securitize on the Algorand blockchain, the Hybrid IPO will use a new Algorand feature making it possible to tokenize and issue any type of asset (in this case, stock).
“Issuing and managing compliant digital securities requires innovative technology,” said Shay Finkelstein, CTO at Securitize. “Algorand is delivering that innovation with this new set of features that brings an impressive amount of opportunity to decentralized finance. Algorand’s performance combined with the new 2.0 release of their core protocol shows great potential for compliant, cost-effective securities trading infrastructure and will enable Securitize to provide an efficient version of our compliance layer for our customers.”