Blockchain

Algorand Cuts Block Times Below 3 Seconds With New Blockchain Upgrade

10 months ago
Bitcoin Ethereum News
Algorand Cuts Block Times Below 3 Seconds With New Blockchain Upgrade

 Key takeaways:

  • Algorand has implemented its Dynamic Round Times upgrade, which reduces average block times to under 3 seconds, improving network speed and scalability
  • The faster block times are enabled by a dynamic algorithm that adjusts block finality based on real-time network conditions like congestion and volume.
  • The upgrade is part of Algorand’s 2024 roadmap, which includes other planned improvements to consensus, architecture, and developer tools.
  • The ALGO token price declined by 4.83 despite the upgrade announcement

Layer-1 blockchain network Algorand has implemented a major protocol upgrade that reduces average block creation times to under 3 seconds, significantly improving network throughput and scalability. 

The upgrade, called Dynamic Round Times (or Dynamic Lambda), was activated on the Algorand mainnet on January 17, 2024, after being approved by a community governance vote on January 10. 

According to the Algorand Foundation, Dynamic Round Times is an algorithm that dynamically adjusts block finality based on real-time network conditions like congestion and transaction volume. This allows the network to achieve faster block times while maintaining security and decentralization.

Faster Block Times Boost Network Performance

Block time metrics from monitoring service Grafana show that after the upgrade, Algorand’s average block interval dropped below 3 seconds to approximately 2.9 seconds. This represents a nearly 20% reduction from the previous average of 3.3 seconds per block. In comparison, major blockchain Ethereum currently produces blocks every ~12 seconds on average.

Lower block times translate into faster confirmations for transactions, higher throughput capacity, and reduced wait times for end users. Algorand highlighted that dynamic block creation is like a bus adjusting departure times based on passenger demand rather than following a fixed schedule. This flexibility and scalability are key for blockchain networks handling high volumes.

Part of Algorand’s Ongoing Development Roadmap

The activation of Dynamic Round Times is a milestone in Algorand’s ongoing development roadmap for 2024. Other planned upgrades include:

  • Support for Python development to attract more decentralized app creators
  • Increasing the use of non-archival relay nodes for better scalability 
  • Upgrading the underlying consensus mechanism 
  • Shifting to a gossip protocol similar to Bitcoin’s peer-to-peer network

Algorand was founded by Turing Award winner and MIT professor Silvio Micali with the goal of solving the “blockchain trilemma” – providing security, scalability, and decentralization simultaneously. It currently supports over 1000 projects, including major partnerships like FIFA’s NFT marketplace.

ALGO Price Impact Remains Unclear 

Despite the upgrade announcement, ALGO, Algorand’s native token, has declined by over 4.83% in the last 24 hours, and it is currently trading around $0.17. 

Normally, most cryptocurrency prices often exhibit volatility unrelated to protocol-level fundamentals, so it remains unclear whether the Dynamic Round Times upgrade will positively impact ALGO price in the short to medium term. However, the upgrade does appear to strengthen Algorand’s competitiveness in the increasingly crowded blockchain industry.

With sub-3 second block times, improved efficiency, and a forward-looking roadmap, Algorand is positioning itself as an attractive blockchain platform for developers, institutions, and everyday users. If network usage and adoption continue growing, the full benefits of the Dynamic Round Times upgrade will likely be realized a few months down the road

Read more: Algorand Price Prediction 2030: Algorithm Makes a Bullish Price Forecast

Source: https://coincodex.com/article/36829/algorand-cuts-block-times-below-3-seconds-with-new-blockchain-upgrade/