How MIT Joined Ethereum in the Race for the First PoS Blockchain

It is expected that the nodes of the new network will be able to verify transactions with a throughput increased by 99 percent compared to the Bitcoin blockchain and by 10 percent compared to Ethereum.

The term "Trilemma" was first used by Vitalik Buterin when referring to the phenomenon when only two of the following parameters can be achieved at the same time within the framework of the blockchain security, decentralization and scalability.

The fact is that the current blockchain system is designed in such a way that each node stores information about the entire network and processes all transactions.

Algorand nodes will be able to verify transactions using only 1 percent of the data that the Bitcoin blockchain usually uses.

"With Vault, a blockchain compression technology, we want to make sure that Algorand will avoid the storage and bandwidth costs associated with other blockchain protocols, which in turn make it a more viable blockchain solution for companies to adopt. The most exciting parts of Vault are that it frees up local storage on nodes, distributes the storage costs of the Algorand blockchain across different parts of the network by sharding, and reduces the bandwidth required to join the network by allowing new nodes to avoid checking every block since day one."

The Ethereum foundation suggests a PoS blockchain model in which nodes can work in parallel.

The model is quite similar with the one used by Algorand, and implies that each node has to carry a small part of data in order to complete a transaction - and each shardchain is a separate blockchain having separated accounts, state and transactions.

In order to achieve high bandwidth, Ethereum plans to process part of the transaction outside the blockchain by means of its second layer, Plasma.

Earlier, he said that the blockchain in its current state is doomed until PoS starts functioning.

"The trilemma is false. The fact that 2000+ prior blockchain projects could not simultaneously be secure, scalable and decentralized is not proof that achieving all these three properties is impossible. Algorand exists to solve this exact challenge and we are advancing the limits of blockchain by means of technological breakthroughs like our pure of proof stake algorithm."