Algorand boosts network speed with key protocol upgrade

• Algorand’s latest protocol upgrade has cut block time from 3.8 seconds to 3.3 seconds.
• It is the PoS network’s largest decrease in block time by percentage and comes as blockchains look to boost performance amid competition.
• ALGO, the native Algorand token, rose to near $0.13 before trading slightly lower on Thursday afternoon.

Algorand has released a new upgrade that sees the protocol’s block time significantly reduced and thereby boosting the network’s performance.

The proof-of-stake network announced the new upgrade had gone live on mainnet on Thursday. It noted that network speed had improved by more than 10%, with a block time of 3.3 seconds unleashed to cut network speed from the previous 3.8 seconds. Its Algorand’s largest block time reduction percentage-wise.

1/ Major Protocol Upgrade unleashes 3.3 second transaction finality on #Algorand and incorporates key new features for streamlining application development 👉 https://t.co/3LylJ7XWnt pic.twitter.com/v64yrnmI17

— Algorand (@Algorand) June 22, 2023

Notably, Algorand maintains its instant transaction finality, the protocol upgrade announcement noted. Today’s upgrade makes application development on the PoS network faster and cost-efficient.

The native token ALGO rose nearly 5% following the news to trade near $0.13. However, it traded around $0.125 at the time of writing, about 1.5% higher in the past 24 hours.

Cardano and BNB Chain also introduced upgrades

Algorand’s block time reduction comes amid similar upgrades across the ecosystem as blockchains look to tap into the growing developer ecosystem.

Early this week, Cardano introduced upgrade 8.1.1 that aimed at speeding up network processes during epoch transitions for better performance. BNB Chain’s Luban hard fork, introduced last month, also sought to improve network speed and security.

For Algorand, the latest upgrade introduced other enhancements such as Simulate, a tool that allows developers to simulate smart contracts and test for bugs and other issues before deploying on the mainnet. Another tool is Conduit, which allows for flexible and affordable access to data.

“We are hyper focused on Algorand providing the best tech for developers to engage with and end users to experience,” Paul Riegle, Chief Product Officer at Algorand, said. 

According to him, the new capabilities means developers can quickly build and deploy higher quality dApps to the market, leveraging faster, efficient testing and customised data sets.