What is Algorand (ALGO)? Fast, Secure and Decentralized Blockchain

Algorand (ALGO) is a blockchain and cryptocurrency platform designed to function like a large payment processor. The Algorand blockchain uses a consensus mechanism called Pure Proof-of-Stake (PPoS). ALGO, the native coin of the Algorand platform, is used to secure the platform and reward ecosystem managers.

Background to Algorand

Algorand was created in 2017 by Silvio Micali, a professor of computer science at the Massachusetts Institute of Technology (MIT), and winner of the Turing Prize for his work in cryptography. Micali has a vision to create a blockchain that can handle high global demand at a low cost. He was inspired by the clock synchronization technology used by Qualcomm to coordinate mobile devices around the world.

Micali then developed the PPoS algorithm, which was the main innovation behind Algorand. PPoS is a system that assigns cryptographic timestamps to every transaction on the network, thus enabling efficient and accurate sequencing. PPoS also works closely with the proof-of-stake (PoS) algorithm, which is a consensus mechanism used by Algorand to select validator nodes and incentivize them.

Algorand launched the mainnet beta in March 2020, after raising around $25 million in funding through token sales and investments from various parties, such as Multicoin Capital, Foundation Capital, and Andreessen Horowitz. Algorand also received support from various strategic partners, such as Serum, FTX, Chainlink, Circle, and Audius.

Algorand Advantages

Algorand has several advantages that make it stand out among other blockchains, such as:

Scalability 

Algorand can process more than 700 thousand transactions per second, which is much higher than other blockchains, such as Ethereum (15 TPS), Bitcoin (7 TPS), or Visa (24 thousand TPS). Algorand can also increase its capacity proportionally with increased hardware speed, without sacrificing decentralization and security.

Speed 

Algorand can confirm transactions in less than a second, which is much faster than other blockchains, such as Ethereum (15 seconds), Bitcoin (10 minutes), or Visa (3 seconds). Algorand can also adapt to changing network conditions, such as latency or congestion, without compromising its performance.

Cost 

Algorand has a very low transaction fee, which is around $0.00025 per transaction, which is much cheaper than other blockchains, such as Ethereum ($20), Bitcoin ($10), or Visa ($0.05). Algorand also has stable and predictable costs, without any fluctuations or spikes caused by high demand or low supply.

Compatibility 

Algorand supports the creation of smart contracts and DApps using popular programming languages, such as Rust, C, C++, and JavaScript. Algorand is also compatible with Ethereum via cross-chain bridges, such as Wormhole, which allow the transfer of assets and data between the two networks. Algorand also supports various token standards, such as SPL, ERC-20, and ERC-721.

Algorand Function (ALGO)

Algorand (ALGO) is the native token and utility of the Algorand network, which has various functions, such as:

• Value transfer: ALGO can be used to transfer value between users on the Algorand network, either peer-to-peer or through applications.
• Transaction fees: ALGO can be used to pay transaction fees charged by the Algorand network for each transaction made on the network.
• Staking: ALGO can be used for staking, which is a process that involves locking a certain amount of ALGO on the network to support network operations and security. By staking, users can choose validator nodes they trust and receive rewards in the form of ALGO.
• Governance: ALGO can be used to participate in Algorand network governance, which is a process that involves collective decision-making regarding various aspects of the network, such as parameters, protocols, and updates. Using ALGO, users can vote, propose, or delegate to other parties.

There are several ways to obtain and use Algorand (ALGO), such as:

• Buy: ALGO can be purchased using fiat currency or other crypto on various crypto asset exchange platforms.
• Sell: ALGO can be sold by exchanging it for fiat currency or other cryptocurrencies on various exchange platforms, such as Binance, Coinbase, Crypto.com, and Indodax.
• Swap: ALGO can be exchanged for other cryptocurrencies on various centralized crypto exchange (CEX) platforms or in various DeFi applications, such as Serum, Raydium, Oxygen, and Mango Markets.
• Store: ALGO can be stored in different types of wallets, such as web wallets, software wallets, hardware wallets, or paper wallets. Some examples of wallets that support ALGO are Phantom, Sollet, Solflare, Ledger, and Trezor.
• Use cases: ALGO can be used for a variety of purposes, such as value transfer, transaction fees, staking, governance, or interacting with various applications on the Algorand network, such as DeFi, NFTs, gaming, and social.

Conclusion

Algorand (ALGO) is one of the most popular and environmentally friendly blockchains. ALGO is the blockchain's native token. The Algorand blockchain can handle transactions quickly, cheaply, and securely. This is an explanation of what Algorand is. Hope it is useful!

How to Buy Algorand (ALGO) on Bittime

You can buy and sell ALGO tokens in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti. ALGO is available on Bittime with ALGO IDR pairing.

To be able to buy ALGO/IDR tokens on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum purchase of Bittime assets is IDR 10,000. After that, then you can make ALGO purchases in the application. Complete Guide on How to Buy ALGO on Bittime.

Monitor the price chart movements of Algorand (ALGO), Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

Get to know Proof-of-Stake (PoS) on Blockchain

What is Staking?

What Are Blocks and How They Work in Blockchain

DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.