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About Algorand
-
What is Algorand (ALGO)?
: A self-sustaining, decentralized, blockchain-based network supporting various applications. -
Mainnet launch
: June 2019, handling almost 1 million transactions per day as of December 2020. -
Founders
: Silvio Micali, a professor at MIT and Turing Award recipient. -
Unique features
: Lower transaction fees, no mining, and a permissionless pure proof-of-stake (PoS) blockchain protocol. -
Coin supply
: 10 billion ALGO, with distribution ending in 2030.
About Algorand: Pioneering the Future of Blockchain
Introducing Algorand (ALGO): A Revolutionary Blockchain Ecosystem
Algorand is a self-sustaining, decentralized, blockchain-based network that
empowers a diverse array of applications. These systems boast unparalleled
security, scalability, and efficiency, all essential properties for seamless
functionality in real-world applications. By providing reliable performance
guarantees, Algorand enables the creation of novel forms of trust.
The Algorand mainnet officially launched in June 2019, and by December 2020, it had scaled to process nearly 1 million transactions daily. For a detailed view of Algorand’s transaction metrics, please refer to this link. The Algorand initial coin offering (ICO) took place in June 2019, with each token priced at $0.24.
The Visionary Founders Behind Algorand
Silvio Micali, a renowned professor of computer science at the Massachusetts Institute of Technology and founder of Algorand, is a luminary in the realm of cryptography. As a recipient of the prestigious Turing Award in 2012, he has been recognized for his groundbreaking contributions to the theory and practice of secure two-party computation, electronic cash, cryptocurrencies, and blockchain protocols, solidifying his position as one of the most influential creators of cryptographic systems globally.
Unveiling the Distinctive Attributes of Algorand
Algorand was conceived to revolutionize transaction speeds and enhance efficiency, addressing the sluggish transaction times inherent in Bitcoin and other blockchain networks. By design, Algorand boasts lower transaction fees and eliminates the need for energy-intensive mining, characteristic of Bitcoin, instead relying on a permissionless, pure proof-of-stake (PoS) blockchain protocol.
The Circulating Supply of Algorand (ALGO) Coins: A Closer Look
The Algorand blockchain’s genesis block stipulates that a total of 10 billion ALGO tokens were minted. The distribution of this fixed and immutable supply of 10 billion ALGO is now slated to conclude in 2030, a departure from the initial timeline of 2024. For a more in-depth exploration of Algorand’s tokenomics, please refer to this resource.
The Algorand Network’s Robust Security Mechanisms
The Algorand blockchain operates on a permissionless, pure proof-of-stake protocol, distinguishing itself from traditional proof-of-work (PoW) blockchains. In the latter, randomly-selected validators must validate the root block using computing power. In contrast, the pure proof-of-stake approach enables all validators, known to one another, to collectively agree on the next block, thereby creating a new block.
Where to Acquire Algorand (ALGO): A Comprehensive Guide
Algorand can be acquired on a variety of prominent cryptocurrency exchanges, including but not limited to:
The esteemed cryptocurrency exchange, Coinbase
The esteemed cryptocurrency exchange, Binance.
OKEx, a pioneering force in the cryptocurrency realm.
The esteemed Kraken
Huobi Global, a Pioneering Digital Asset Exchange
To obtain real-time Algorand prices in your preferred fiat currency, utilize CoinMarketCap’s intuitive converter tool, conveniently accessible on the Algorand price page. Alternatively, you can visit the dedicated exchange rate converter page. Notable Algorand price pairs include: ALGO/USD, ALGO/GBP, ALGO/AUD, and ALGO/EUR.
Seamless Interoperability: Algorand’s Harmonious Coexistence with Ethereum
On February 17, 2022, the Algorand Foundation unveiled a $10 million grant to Applied Blockchain, tasked with developing the London Bridge, a trustless bridge designed to bring Ethereum compatibility to the Algorand blockchain. Despite boasting low-cost transactions, low latency, and high scalability, Algorand has struggled to attract liquidity to its ecosystem. The establishment of a bridge to Ethereum, which currently boasts the most robust decentralized application (DApp) ecosystem, would enable Algorand to tap into these applications and attract increased liquidity. In the long term, the Algorand Foundation envisions verification of other chains being performed on Algorand’s smart contracts, achieved by incorporating state proofs in the form of Compact Certificates into the Algorand Consensus. The foundation’s ultimate goal is to solidify the decentralized finance (DeFi) ecosystem on Algorand.
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Algorand’s Staking Mechanism: A Pioneering Pure Proof-of-Stake Consensus
Algorand leverages a unique variant of Proof-of-Stake, known as Pure Proof-of-Stake (PPoS), which boasts a highly democratized consensus mechanism. Notably, PPoS features a remarkably low barrier to entry, requiring a minimal staking threshold of just one ALGO token to participate in the network and contribute to its security. In stark contrast, Ethereum 2.0 necessitates a substantially higher stake of at least 32 ether (ETH), presenting a significantly more formidable obstacle for would-be participants.
On the other hand, a low minimum staking requirement may compromise network security, as users may be less motivated to act in good faith when they do not have a substantial stake in the network.
The Generation of Algorand Blocks via Pure Proof of Stake (PPoS)
In Pure Proof-of-Stake networks, validator nodes are randomly selected to validate transaction data within a block. Algorand’s PPoS consensus mechanism, on the other hand, adopts a two-phase block creation process, comprising a proposing phase and a voting phase.
By staking ALGO and generating a valid participation key, every member of the Algorand network is empowered to engage in the proposing and voting process. A relay node, a specialized type of Algorand network node, facilitates seamless communication among participation nodes, yet refrains from actively participating in proposing or voting.
Algorand’s Indigenous Digital Asset: ALGO
ALGO, the native cryptocurrency of Algorand, plays a pivotal role in the network’s topology. Notably, the rewards bestowed upon validators for creating blocks are distributed proportionally among all ALGO holders, diverging from the conventional approach where only block producers reap the benefits, a hallmark of Algorand’s innovative protocol architecture.
The distribution of rewards takes place at approximately 10-minute intervals, serving as an incentive for individuals to participate in the Algorand staking platform, thereby facilitating a seamless transition towards decentralization.
To simplify the process, users are not obligated to lock their coins as part of the block manufacturing and validation process. If they wish to earn incentives, they can simply store their ALGO in its official non-custodial wallet, MyAlgo Wallet. Notably, Algorand has achieved near automation, as stakeholders can effortlessly hold ALGO while concurrently supporting the network.