Algorand founder Silvio Micali wants to usher in the democratization of finance
Cointelegraph’s Joseph Hall sat down with Silvio Micali, the founder of Algorand, as part of its on-the-ground coverage of the Paris Blockchain Week Summit, or PBWS. Algorand is a blockchain that uses a Pure proof-of-stake (PPoS) protocol, and the company was one of the main sponsors of the summit.
Micali started off by explaining that the the blockchain trilemma, claiming that no blockchain can be all three at once — secure, scalable and decentralized — is false. He affirmed that Algorand actively works to solve this so-called trilemma by pushing the limits of scalability via its PPoS algorithm.
Since Ethereum (ETH) is set to transition from proof-of-work to proof-of-stake later this year, Algorand will stand in direct competition to Ethereum. It was originally Ethereum’s co-founder Vitalik Buterin who coined the concept about the trilemma, and Micali recognizes that “perhaps scalability was sacrificed for security” in Ethereum’s case. However, due to the fact that it is not yet known exactly which type of proof-of-stake version Ethereum will take on, Micali welcomes the competition.
“Competition is always good. I believe in democratization and meritocracy. There is room to collaborate.”
Appropriate to the setting of the conversation, the former home to the Paris stock exchange, Micali and Hall also discussed the role of institutions and regulation. Micali stated that “good regulations make for better markets” and asserted that large institutions are slowly understanding that cryptocurrency can be “a much more secure way to transact.”
When asked about Algorand’s future, Micali said to expect more tech and increased scalability. He added that within the next year, “speculation will disappear and real world use cases of the blockchain will start.”
He also admitted to looking forward to the democratization of finance. To him, this means that not just the elite, but the common person on the street, has the same access to sophisticated financial tools at a fraction of the actual cost. He added that “we are getting sick and tired of the concentration of our wealth” and that he believes that blockchain technology can level the playing field.