The inception of the permissionless public blockchain technology has contributed to maximum transaction efficiency, security, and reliability in diverse organisations, government and among individuals both intrinsically and otherwise. 

Furthermore, the blockchain makes provision for Enterprises which are operating independently  to be able to increase revenue generation, create new product opportunities as well as advance their markets. Regardless of how useful the public blockchain appears, it is still not Ideal or well suited to the requirements of several organizations, such like the finance, banking, healthcare and others face very complex regulatory requirements as well as need to sensitively manage their data as regards to who can assess it and who can not. This complexity in control and management of data across different systems where public permissionless blockchain will be ineffective ,a private blockchain would perfectly fit and enhance their operations. 

However, these private permissioned blockchains also run the risk of isolating their users but by creating a situation where both blockchain infrastructures can interoperate, users and organizations can conveniently organize and isolate sensitive data on a private blockchain while at the same time maintain global interaction on the public blockchain. 

Let’s briefly consider the unique characteristics of the permissioned and permissionless Algorand blockchains.


This version of algorand is characterized by trust between users who do not know each other, transparency of transactions and immutability of any transaction executed on the network.

The blockchain makes provision for every token to partake in the consensus protocol with same strength as any other token (decentralization), allows numerous users to generate blocks without unnecessarily exhausting energy and computation power(scalability), and also there is no room for subversion on the network by miners, delegates or even members who hold a tiny percentage of the tokens.

There is also no forks and transaction finality as every new block is separately agreed upon and is expected to perpetually reside within the Algorand network, with the standard assets and smart contracts handled at the layer 1 level which is the most secure and direct layer.


 In the permissioned version of algorands blockchain structure, the most notable characteristic is its capacity to conceal transaction details from outsiders. Unlike the permissionless setup where every token is eligible to partake in the consensus protocol, the permissioned version maintains a weighted decentralization on demand outlook.

 By implication, this structure possesses the capacity to select an arbitrary number of validators on its own and decides the ratio at which the tokens will be partitioned among those validators.


Algorand has successfully developed a unique co-chain network that is characterized by an interoperability of the two widely known blockchains(public and private blockchain). The  co chain can simply be described as the network’s permission chains which ensures interoperability with algorand’s mainnet and other co chains. The co-chain is a unique permissioned version of algorand blockchain which enjoys layer 1 smart contracts, customizable decentralization, and also benefits from the progressive changes which are effected on the mainnet.

The algorand co chain infrastructure is characterized by the following

  • Complete autonomy from the public chain,keeps its transactions from outsiders, selects ideal block validators on its own and possesses a personal algorand consensus algorithm.
  • With the same level of security and swiftness with which participants on algorands mainnet interact and transact, the co chain interoperates with the algorand main chain and extends its interaction with other co-chains within the ecosystem.
  • The co chain aside from interacting with other chains and the main chain, also inherits the upgrades, innovations as well as the improvements made onto the Algorand’s permissionless blockchain protocol, enjoys the same level of atomic transactions,layer 1 smart contracts, and every other tool provided by the main chain protocol.

This co-chain makes provision for the participants in the permissioned version of the blockchain to operate securely with each other as well as extend their operability to the Algorand main chain as well as members of other chains while maintaining complete autonomy and is self regulated.


  • Complete independence from the public chain.
  • Rigorous fine-grained control
  • Transactions secured from outsiders
  • Interoperability with the algorand main chain.
  • An extended transaction with other co – chains as effectively and securely as possible
  • Self selection of block validators.
  • Running its own algorand consensus algorithm
  • Automatic inheritance of the perks innovations and upgrades on the Algorand platform.

The co – chain architecture is developed to address the prevalent issues and laxities of the permissioned blockchain of the Algorand network, Now the question is, how can interoperability associated with the co-chain network be obtained?


  • Transfer from Co-chain to Main chain.

In a situation where a participant in the Algorand co chain desires to transfer an asset through a unique public key to the main chain, a transaction that is verifiable by the use of signatures.

Perhaps, a user needs to earn some stable coins by auctioning off one’s asset, and in the general market it is a known fact that the higher the set of bidders is, the higher the gains to be accrued. However, instead of choosing to auction his asset on the co-chain, he may decide to auction it on the mainnet.

The idea behind this is to create an environment where bids are welcomed not only from the co – chains, but also from the mainnet architecture as well as other chains in operation. To be more precise, a member of the co-chain is allowed to transfer his assets to the main chain in order to participate in the auction activity.


After auctioning out one’s assets and acquiring stablecoins in the process, a user may intend to transfer his stable coins from the mainnet back to the co- chain from where it was originally moved.

   This implies that the interoperability of the co-chain with the algorand main chain as well as other chains isn’t only a one way traffic kind of transaction. The same ease and security surrounding the transfer of assets from co- chain to the mainnet is equivalent to what is obtainable when transferring from the mainnet back to the co – chain. 


    In order to enhance a pleasant and optimal blockchain experience, the Algorand infrastructure have succeeded in fusing the features of the two unique blockchain networks (permissioned and permissionless version) together. The rationale behind this move is to proffer more blockchain usefulness for those organizations with discrepant functions and ensuring the provision of a network that best meets their unique needs.

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