In a recent protocol update, the nonprofit organization Algorand Foundation revealed a reduced 20 percent block creation time on its layer-1 blockchain.
Block creation time refers to the average time taken to create a new block on a blockchain. Using the Dynamic Lambda (dynamic round times) for the upgrade, Algorand employs an algorithm that dynamically adjusts block finality in response to real-time network conditions.
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This capability enables the network to achieve faster block times while maintaining security and stability. The outcome includes accelerated transaction confirmations, heightened throughput capacity and decreased wait times for end users.
With the update, Algorand’s average block creation time now reaches less than three seconds. According to Grafana block time data, the average block interval duration on Algorand now stands at approximately 2.9 seconds per block post-update, as opposed to the pre-upgrade figure of 3.3 seconds.
Notably, this places Algorand well ahead of Ethereum, which currently maintains a block creation time of 12 seconds.
However, despite the recent technological update, there has yet to be an apparent impact on the price of ALGO. It is currently trading at $0.177, reflecting a seven percent price decline in the last 24 hours and a 12.64 percent decrease in the past seven days.
Part of Algorand’s 2024 roadmap
The protocol update is part of the foundation’s 2024 roadmap, as announced on January 17 on social media X.
“Checkmate. We open 2024 with The Algorand Gambit, our technical roadmap for the year,” the foundation wrote in a post.
The name “Gambit” given to the roadmap’s title refers to “an opening move in chess that sometimes entails a degree of risk but is calculated to gain an advantage,” as per the foundation’s official website. Algorand also promises their 2024 agendas will be filled with “permissionless blockchain infrastructure while setting new standards in performance and usability.”
♟️Checkmate. We open 2024 with The Algorand Gambit, our technical roadmap for the year.
2024 marks a pivotal moment for Algorand—committed to permissionless blockchain infrastructure while setting new standards in performance and usability.
Read the full roadmap:… pic.twitter.com/DD0svU7ZlS
— Algorand Foundation (@AlgoFoundation) January 17, 2024
Algorand’s 2024 roadmap outlines how dynamic round times will enhance the network’s scalability and efficiency. The deployment of the Dynamic Lambda update marks a significant development for Algorand, opening new opportunities to attract users and developers seeking effective blockchain solutions.
The Algorand roadmap details additional updates and upcoming improvements alongside dynamic round times. The next update, set to commence in the remainder of Q1, will be the AlgoKit 2.0.
The second update introduces native Python support, offering millions of developers, from students to AI/ML professionals, the opportunity to create decentralized applications on Algorand in a familiar language.
The update invites builders to innovate, providing a quick 10-minute start with AlgoKit for easy development, testing and deployment on the Algorand platform. The upgrades also include improvements to localnet and sandbox for enhanced experimentation, Python unit testing, a Python visual debugger tool and additional app-building libraries.
Dynamic Round Times (aka Dynamic Lambda)
This protocol upgrade, which went into effect today, will increase network performance, meaning higher throughput and lower block times.
Block times will now average less than three seconds. pic.twitter.com/GalJbtc74U
— Algorand Foundation (@AlgoFoundation) January 17, 2024
After Q1, the roadmap also reveals plans for improvements to the consensus mechanism and a transition to a peer-to-peer gossip network akin to Bitcoin. There will also be an expansion in the total number of non-archival relay nodes.
The full roadmap is available on Algorand’s official website. The company also provides a summarized version of each step in the X thread.
Global potential of blockchain
After its establishment in 2017 by MIT professor Silvio Micali, Algorand operates as a nonprofit organization committed to realizing the global potential of blockchain technology. The foundation fosters an inclusive ecosystem by leveraging the Algorand protocol and open-source software.
As of now, Algorand hosts numerous projects, including non-fungible tokens (NFTs) and decentralized finance (DeFi). Some specific projects include NFT Inspect, EXA Market, NFDomains and London Bridge. Additionally, the foundation provides ecosystem funding to support building inspiring communities, DApps, and projects on Algorand, including those focused on DeFi and other verticals.
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