What Is Algorand?

Algorand coin is a cryptocurrency network built on blockchain that aspires to be secure, scalable, and decentralized. It serves as a shared platform for the development of products and services for a borderless economy.

The Algorand framework includes smart contract functionality. Its consensus process is built on proof-of-stake principles and the Byzantine Agreement protocol. 

Algorand’s cryptocurrency is known as the Algo. With only 10 billion units available, the Algorand blockchain was created with a limited number of Algo available for circulation.

The Algorand test network was made available to the public in April 2019, while the main network was released publicly in June 2019.

About the Founder

Algorand, Inc., a private organization based in Boston, is in charge of the platform’s development. Silvio Micali, an MIT professor, launched it in 2017. 

Silvio Micali has been a member of the MIT Electrical Engineering and Computer Science Department faculty since 1983. Cryptography, zero-knowledge, pseudorandom generation, secure protocols, mechanism design, and blockchain are among his research interests. 

Micali is best known as the co-inventor of probabilistic encryption, Zero-Knowledge Proofs, Verifiable Random Functions, and many protocols that serve as the backbone of current cryptography.

He established Algorand in 2017, intending to create a common platform for developing products and services for a global market. Micali is in charge of all research at Algorand, including theory, crypto finance, and security.

The Algo

The Algo is the chief currency used within the Algorand blockchain. Aside from the core characteristics, the Algo is a leading cryptocurrency due to its relevance to the Algorand blockchain. 

It is the token used to secure the consensus required in the construction of each block. It is also the token used to pay for every trade, and it will soon be the currency used to manage the expansion of the Algorand ecosystem and as a Governance incentive for those who commit to voting as part of governing. 

Because of its one-of-a-kind nature, the Algo is not only the foundation of the Algorand blockchain, but it is also the most efficient and secure method of purchase. 

Features of the Algo

The Algo is often considered one of the most important native coins found right now at the cryptocurrency boom. It possesses all the fundamental features of the Algorand blockchain tech. 

Super-Fast

The Algo coin promises super speed to its users. Any transaction with the Algo coin can be completed in under 4 seconds. 

Scalability

Irrespective of how many transactions happen on the chain, the speed on the Algo coin will remain the same, that of under 4 seconds. This is because the Algo coin was built with the intention to have as many users as possible. The payments will not slow down even if there are a billion simultaneous users.

Security

Proof of stake or PoS protocols are a type of blockchain consensus method that works by selecting validators in relation to their holdings of the corresponding cryptocurrency.

Algorand and Algo transactions are protected by the Algorand blockchain’s distinct Pure Proof-of-Stake consensus. As a result, this blockchain is unique. Algorand does not fork and uses cutting-edge cryptography to safeguard users’ data and privacy.

Low Transaction Costs

Unlike so many other blockchains, where every transaction is exorbitantly priced, every Algo transaction, regardless of size, costs a relatively small amount of money.

Transparency

At the creation of the Algorand blockchain, a fixed and unchangeable total supply of 10 billion Algo was generated. Anybody can check how many Algo are in use at any given moment. This is a transparent system and a rarity in the blockchain industry.

Uses of the Algo

The public version of the Algorand blockchain is mainly intended to allow other developers to create new types of cryptocurrency-fuelled applications.

The platform has been used in a variety of industries, including real estate, copyright, and microfinance. The Algorand Foundation’s official website contains a complete description of use cases.

Algorand’s code is open-source and can be cloned, replicated, or utilized in Private or Permissioned Blockchains.

Governance System on Algorand

The Algorand ecosystem transitioned to a decentralized governance style on October 1st of 2021.

All Algo holders are able to participate in the decision-making process regarding the growth and development of the Algorand ecosystem, thanks to Community Governance. The governance strategy for the Algorand community is intended to be simple and to encourage maximum participation.

Following the introduction of Governance and Governance rewards, the current participation rewards program will be taken down in early 2022. Since Governance is a significantly more involved procedure, with commitment time and a vote in which all Governors must participate, it is expected that not all Algo holders will take part. 

This should result in higher levels of Governance awards than are now available for participation rewards. 

Decentralized Financing 

The Algorand Foundation is dedicated to speeding up the development of a next-generation DeFi (Decentralized Finance) ecosystem based on Algorand. The Algorand Foundation is dedicated to empowering a new generation of inventors and developers with a vision of exceptional DeFi that is free of the constraints of legacy technologies.

The Algorand Foundation has announced the establishment of the $150 million Algo Viridis Fund to assist and promote the development of the world’s most micro-fee DeFi ecosystem that is also scalable and efficient.

Sustainability

Since the Algorand network is based on a novel, low-power consumption Pure Proof-of-Stake consensus algorithm, their carbon footprint is already negligible. This is especially true when contrasted to first and second-generation systems like Bitcoin or Ethereum. The Algorand network is built around a low-energy, low-carbon footprint method. 

They have also collaborated with ClimateTrade, an existing member of the Algorand ecosystem, to counteract the Algorand Network’s low carbon footprint and make Algorand the first Carbon Neutral blockchain network. 

The Algorand community is committed to ensuring that the Algorand network remains carbon neutral for the duration of its existence. Moreover, they look forward to going carbon negative as part of their plan to commit to carbon neutrality for an extended duration of time.

Summing Up

As one of the first carbon-neutral, low-cost DeFi blockchain technologies out in the world right now, it is an excellent option for investment. Further, it is available only in limited quantities, and very few cryptocurrencies actually provide this level of transparency.