What is Algorand (ALGO)?
Algorand is a decentralized open source network that uses a unique Proof-of-Stake mechanism to create a two-layer architecture and enable the coexistence of decentralization, scalability, and security. Achieving scalability, security, and decentralization in a blockchain network is a difficult task for most cryptocurrency projects. Algorand aims to enable complete decentralization with top security and scalability, while achieving 1,000 transactions per second and fast block completion.
Algorand launched in 2019 as one of the most recent prominent projects in the blockchain space with the goal of providing a platform for emerging and existing businesses in the decentralized economy. ALGO is the native cryptocurrency of the Algorand system and is designed to support the decentralized economy and enable equal participation in it. Algorand participants can enjoy the benefits of instant transactions with ALGO and can receive rewards. This system is based on ALGO holders and ALGO block producers, i.e. those running the node.
Algorand users can deploy smart contracts to create new tokens and decentralized applications (dApps). Algorand provides an alternative to Ethereum’s smart contract functions while providing more efficient scalability with Pure Proof-of-Stake. With the Algorand Standard Asset (ASA) feature, users can deploy new tokens to the network or transfer existing assets into the Algorand ecosystem and participate in Algorand’s decentralized economy.
How does Algorand work?
The Algorand network achieves security, scalability, and decentralization in one place by using Pure Proof-of-Stake consensus mechanism combined with Byzantine agreement protocol. Thanks to this protocol, even if a node is compromised, the staked ALGO balances of network members will be protected by automatically generated unique keys.
The network is secured through the Pure Proof-of-Stake protocol and relies on a system that only allows users with a majority of ALGO funds to engage in malicious activities that could compromise the security of the networks. other users and the network. However, although some users may have that power, the system is based on the interdependence of network members. In case the majority holder decides to engage in malicious activities, the value of ALGO will decline and users’ funds will be devalued, thus making malicious activities unprofitable.
Thanks to its efficient scalability, ALGO transactions are final and instant, with the ability to process 1,000 transactions per second. The total supply is capped to regulate supply and add an anti-inflation mechanism to the decentralized economy. All ALGO in the total supply has been mined from the beginning and is distributed to ALGO holders and network members with each new block created. The problem of storage in the blockchain is solved in the Algorand system as each new user starts contributing to network storage as soon as they join the decentralized economy. By using these features and protocols, Algorand facilitates a two-tier decentralized network with diverse utilities.
What problems does Algorand solve?
The Algorand project development team wants to build a scalable and permissionless blockchain platform. Some characteristics of Algorand’s blockchain are as follows:
Trust: Algorand provides decentralization and encryption tools to ensure user trust on the network. Anyone can contribute and pass the PPOS consensus mechanism. ALGO tokens will be stored in a distributed manner across global metrics without being centralized in one place.
Transparency: Anyone can create transactions and check previous transactions on the Algorand network.
High transaction speed: Ensuring transaction speed, meeting users’ transaction needs almost immediately.
No permission needed: To ensure permissionless nature, Algorand’s blockchain network will only require users with minimal computing power to participate. This will attract and facilitate more people to participate.
Development team
Silvio Micali – a professor at the Massachusetts Institute of Technology (MIT) and winner of many prestigious awards, founded Algorand and assembled a team of business and academic experts. Algorand, unlike other projects, mainly consists of entrepreneurs in leadership positions. Instead, it is comprised of researchers and scientists connected to MIT, most of whom are based in Boston.
Below are brief biographies of notable members of the Algorand team:
Silvio Micali: Founder of Algorand, professor at MIT, expert in cryptography, security protocols and emulation, as well as research and security with Algorand. He co-invented several protocols, including Zero-Knowledge Proofs, Verified Random Functions, and Probabilistic Cryptography.
Silvio Micali
Steve Kokinos: Steve is the CEO of Algorand and former CEO of Fuze – a business communication platform – bringing a wealth of business experience to Algorand.
Sean Ford: He is the COO of Algorand, was CMO at LogMeIn and has many years of business experience.
What is ALGO token?
ALGO is the native token in the ALGO blockchain network. It serves as a transaction and store of value. In addition, ALGO also participates directly in the PPoS consensus mechanism and transaction confirmation.
What makes Algorand valuable?
Algorand is valuable due to its technology and functionality, as well as adoption, network utility, and other specific factors that can influence Algorand’s value and market price.
One of the factors that create Algorand’s value is its finite supply. Algorand has a limited supply of 10 billion ALGO, created since Algorand’s inception. These funds are distributed as participation rewards to node runners, grants to end users, and the Algorand Foundation.
The market value of Algorand is determined through buying and selling activity, market trends and other specific factors that can influence the price of ALGO.
Conclude
Algorand is a blockchain designed as a platform for developers to create decentralized applications. It has a cryptocurrency, ALGO, which is used to pay for transactions on the network. ALGO can also be staked as collateral to gain the right to receive blockchain governance votes corresponding to the amount of ALGO staked.
You can see ALGO prices here.
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