Algorand's unique stake variation mechanism, known as the Pure Proof of stake, is abbreviated as PPoS. Alternatively, we can simply define it as a new consensus procedure that Algorand uses and is based on Byzantine consensus. It's also important to note that Algorand is the first Pure Proof of Stake blockchain in the world.
This stake mechanism is set up so that the number of sakes or tokens a user has in the system determines whether they can choose a new block. These users are typically chosen to vote and propose blocks at random.
Its safety measure is to keep most of the money in legitimate hands, so the majority of the economy decides how safe the economy as a whole is. In addition, in Algorand, owners with only a small stake cannot harm the economy as a whole. It is also foolish for owners with a majority stake to behave improperly because doing so would eventually deplete their assets and purchasing power.
The first blockchain to offer immediate final transactions is the PPoS network. As a result, it has established itself as the go-to chain for streamlined financing. Which enables it to compete with global financial networks for transaction speed?
There are two parts to the PPoS protocol:
First part:
After the user is selected at random from among all coin holders, his public key is made available to all users. The user can now propose a block because of this. In this phase, random users are selected using VRF, or verifiable random function.
The amount of stake a user owns is not the most important factor in selecting who will form new blocks. For instance, compared to someone with only ten ALGO tokens, I have a better chance of being selected if I have a total of 100 ALGO tokens.
Second part:
Phase two involves selecting a committee of a thousand users at random and then validating the block by the committee. In the end, the new block is connected to the main chain. In this second phase, the committee will be chosen using the same procedure that was used in the first phase.
The committee is in charge of selecting the blocks that are worthy of selection and assists in analyzing the formed blocks. To sum up everything about this system, there is a replacement after each phase is finished, making it impossible for malicious attacks to be successful because the hacker would not know who the new selected users will be.