What type of consensus mechanism does Algorand use to ensure that all nodes agree on a single version of truth across its distributed ledger technology (DLT)?

Algorand uses a unique consensus mechanism called Pure Proof of Stake (PPoS) to ensure that all nodes agree on a single version of truth across its distributed ledger technology (DLT).

PPoS is a Byzantine Fault Tolerant (BFT) consensus algorithm that enables Algorand to achieve scalability, security, and decentralization. At the core of PPoS is the concept of “verifiable random functions” (VRFs). VRFs are cryptographic functions that generate random numbers which are verifiable by anyone.

Algorand uses VRFs to randomly select a set of validators for each block. This set of validators is responsible for verifying transactions and reaching consensus on the next block. The process begins with the selection of a leader from the randomly selected validator set.

The leader then broadcasts a proposed block to all other validators in the network. Each validator then verifies the proposed block and signs off on it if it meets certain criteria. Once enough validators have signed off on the proposed block, it is added to the blockchain and becomes part of the single version of truth across Algorand’s DLT.

PPoS is designed to be secure, efficient, and decentralized, making it an ideal choice for Algorand’s DLT platform. It also allows for rapid transaction processing times and low transaction fees, making it attractive for users who want to use Algorand’s platform for their applications or services.