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Algorand & Frictionless Finance

Algorand proposed a major protocol upgrade that significantly expands the range of decentralized applications (DApps), decentralized finance (DeFi) solutions, and processes that can be built on the Algorand platform. With this new suite of features all built directly into Layer-1, enterprise-scale distributed apps can be created without sacrificing performance or security.

Scroll down for existing details on Algorand Standard Assets, Atomic Transfers, and read about the latest updates to our Algorand Smart Contracts in Layer-1 functionality.

ASA

Algorand Standard Asset in Layer-1

In today’s economy, there remain many issues when it comes to the digitization of assets. These challenges include:

  • Access to global, digital markets
  • 24×7 transferability
  • Instantaneous settlement
  • Ease and enforceability of asset controls
  • Efficiency of administration, such as compliance and reporting
  • Ease and enforceability of asset controls

Asset tokenization on Algorand will solve these challenges and benefit from increased core security, simplified usage, and transaction finality on a high performance blockchain.

ASAs provide a standardized, Layer-1 mechanism to represent any type of asset on the Algorand blockchain. These can include fungible, non fungible, restricted fungible and restricted non fungible assets.

UNIQUE FUNCTIONALITY

Role Based Asset Control (RBAC): Optional and flexible asset controls for issuers and managers for business, compliance, and regulatory requirements. This includes:

  • Quarantine asset accounts for investigative purposes
  • Force transfer an asset where legal or other regulations require it
  • Whitelist model for privileged asset transacting, which allows only specific addresses that have been approved to transact within a specific asset (all others will be restricted)
  • Flexible asset reserve models for custom business requirements
  • Off chain asset documentation included in on chain asset definition

User Protections: Asset spam protection that prevents unknown assets that may have tax, legal, or reputational risk from being sent to users without their explicit approval (users must opt-in to accept new assets).

DIFFERENTIATORS

ASAs are incredibly fast and secure, as they are built directly into Algorand’s Layer-1

ASAs are low cost to execute, due to Algorand’s miniscule transaction fees

Easy and simple asset issuance for developers and enterprises

Universal interoperability of all assets issued on Algorand

MOST EXCITING USE CASES

  • Asset tokenization
  • 3rd party asset issuance on Algorand
  • Democratize access to investments
  • Dis intermediate cross border transactions

EXAMPLE ASSET TYPES

FUNGIBLE TOKENS

  • In Game Points
  • Stable Coins
  • Loyalty Points
  • System Credits
  • Cryptocurrencies

NON FUNGIBLE TOKENS

  • In Game Items
  • Supply Chain
  • Real Estate
  • Identity
  • Certifications
  • Collectables

RESTRICTED FUNGIBLE TOKENS

  • Securities
  • Gov’t Issued Flat
  • Certifications

RESTRICTED NON FUNGIBLE TOKENS

  • Real Estate
  • Ownership Registries
  • Regulatory Certifications

This post first appeared on https://crypto-toilet.medium.com/algorand-frictionless-finance-160318bb9207

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