Algorand
Algorand (ALGO) is a digital currency as well as a blockchain platform. The Algorand forum is designed to process multiple transactions quickly, such as a large payment processor such as Mastercard or Visa. Algorand can host other cryptocurrencies and blockchain-based projects, which makes it a direct competitor to Ethereum. ALGO, the platform's native currency, is used to protect the Algorand blockchain and to pay for processing services for Algorand-based operations.
Algorand is an open-source blockchain, which means anyone can view and contribute to the forum code. Algorand uses an operational protocol called pure proof-of-stake (PPoS), which recruits network operators throughout the ALGO character portfolio.
The Algorand Blockchain is managed by the Algorand foundation and is open to the whole organization and the individuals who want to work with it. The token of the Algorand network is ALGO coin.
Algorand was founded in late 2017 by a famous Italian MIT professor, Silvio Micali. Winner of the 2012 Turing Award, celebrating for his offering to cryptography through initiating zero-knowledge proofs forming a vision behind the network in hopes of tackling the blockchain trilemma of security, distribution, and downtime proposed by Ethereum founder, Vitalik Buterin. Although the network main net was launched in June 2019, the protocol did not hold its breath until 2020 displaying a major network upgrade, Algorand2.0. Essential open network capabilities are required to support the creation of complex application environments such as decentralized financial services(DeFi), in line with a growing ecosystem of smart-contract blockchains.
The problems which were troubling the cryptocurrency market were – scalability of the network, speed of transactions, and security of the network. Algorand is a smart contract platform that seeks to resolve the blockchain trilemma (scalability, decentralization, security) Transaction per second (TPS) of Bitcoin is the slowest with just around 5TPS, while the TPS of Ethereum is around 30 TPS. Algorand can now process up to 1,300 TPS and intends to process up to 3,000 TPS in the future. Algorand will now add a "quick end" to the blockchain, meaning that transactions will never be contested, amended, or postponed. This feature will greatly improve network scalability. Bitcoin, Ethereum, and other traditional cryptocurrency networks are generally overcrowded. Tasks are lightly processed and expensive to perform. The Algorand network aims to solve this problem by reducing gas costs and enabling faster transactions.
The Algorand blockchain works using a type of consensus mechanism known as proof-of-stake (PoS). Simply put, a proof-of-stake blockchain gives participants users the amount of native cryptocurrency in that network (lock tokens on smart contracts) the ability to verify transactions and create new blocks. In doing so, the guarantors receive interest payments on their holding assets. Specifically, the Algorand consensus protocol works by selecting a block proponent and a set of voting committees in each block cycle to propose the block and validate the proposal, respectively. The nominee and committees are randomly selected from a group of all token holders (accounts holding ALGO), and the probability of choice is equal to the account share in the network (i.e., how many ALGOs they have in relation to each other).
Users can contribute to their ALGO to earn inflation rewards by displaying their status in the system as offline or online. The Foundation hosted Algos to contribute to the stability of the Algorand blockchain, promote network participation, and support the Algorand community, ecosystem construction, and research. Algo enters the ecosystem using a variety of channels including development and research grants, participation awards, and marketing. All of these activities were exhibited in full publicity in the Algorand community.
Some projects running on the Algorand blockchain are:
Planetwatch
The Marshal Islands
ARCC
Yieldly
ANote Music
DATE NEWS/EVENTS IMPACT 14/07/2022 CoinShares has launched a staked Algorand ETP on the Deutsche Boerse Xetra +20% Increase 03/05/2022 Algorand becomes the first US blockchain company to sponsor the FIFA World Cup +22% Increase 10/09/2021 The Algorand Foundation has announced the launch of its latest product called the Viridis DeFi Program +18% Increase 02/09/2021 El Salvador to develop blockchain infrastructure using Algorand +28% Increase
On its website, Algorand describes itself as "the future of finance." Not surprisingly, Algorand has become a hot topic, with a core team focused on creating the most tremendous technology in the DeFi and NFT space as well as some of the most coveted partnerships out there.
Algorand, led by one of the world's most successful cryptographers, appears to be the surest competitor to lead a world-class smart contract race for Ethereum, Cardano, Polkadot, and various other blockchains.
The future of the Algorand blockchain depends on the number of efforts the team will prioritize to make it different from its competitors and its ability to solve current blockchain challenges.
