Posted 11 months ago | by Ben Armstrong
Algorand’s Latest Upgrade Targets the DeFi Space
Interest in DeFi is growing and Algorand is eyeing the DeFi space for its latest upgrade.
Speaking with Cointelegraph, Paul Riegle, Algorand’s chief of product said that this new upgrade will center three key features, including: the implementation of stateful of the smart contract feature, the "fast catch-up" and "rekeying" aspects.
This set of features is expected to make the firm stand out as a competitor in the DeFi sector.
To prove his point, the executive highlighted that the key factor to set Algorand’s smart contracts apart from other competitors lies on the base layer’s integration, leading the project straightforward to their goal speedily.
He expanded on this aspect of the new design,
“They do it at layer one, which means that they're extremely fast. They run at a thousand transactions per second, just like our general transactions. There are no second class transactions on Algorand.”
Synchronizing processes can last hours or days, depending on the size of the entire system, so the application of fast catchup could play a game-changing role. Algorand’s development team can take control over their work on dApps without wasting time on waiting the blockchain to synchronize.
Riegle talked more about the “rekeying” feature:
“This feature allows you to keep a single long running public address and actually change out the security or the authorized spending whenever you like. And you could change it from a single key to a multisig key to a stateless smart contract that actually has a spending policy built in.”
New Features From Algorand
The rekeying feature can facilitate the lives of digital asset custodians, not to mention the ability to be applied in daily situations.
Imagine how helpful this feature is when applied in a familiar situation, for example, a regular family. Within a multisig wallet, a family will keep their ALGOs where every family member has its own private key. This can be set to varying amounts of cost through different keys, to enhance the security and decrease conflict regarding inheritance.
The most attractive part, according to Riegle, is that “rekeying” is useful for both traditional and decentralized finance.
“Rekeying allows me to rekey an account to a key you control and then I no longer have access to it. So you can actually give this account over to somebody else in a trustless way, which also is impossible right now. And that's pretty powerful in the finance and the DeFi world.”
Silvio Micali, Algorand’s founder also outlined the team’s unique approach to smart contracts,
“Smart contracts are one of the most beautiful and powerful gifts of the blockchain to the world. But they are also technically very challenging. Traditional smart contracts are solely implemented at layer 2 and are slow, expensive, and fragile.”
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