Algorand
What is Algorand (Algo)?
Algorand is a powerful blockchain platform with cheap and fast cryptocurrency transfers. It has its own consensus algorithm – Pure Proof-of-Stake (PPoS), supports the issuance of digital assets, decentralized applications and smart contracts.
Algorand was founded in 2017 in Boston by Silvio Micali. The company was able to attract $4 million in investments. The main investors were 2 companies – uniоn Square Ventures and Pillar Ventures.
In the summer of 2018, the Algorand closed test network was launched. It was able to show investors its competitive advantages, therefore, in the fall of 2018, it was decided to make another round of fund raising. It was successful and allowed to attract another 62 million US dollars.
The testnet was made public in April 2019 and the mainnet was launched just 3 months later. In November of the same year, the first major updаte was made. The network has been upgraded to Algorand 2.0 with support for:
- smart contracts;
- issuing digital assets;
- atomic translations.
Algorand was able to provide a good level of decentralization and security. This was achieved in the following way – the validators of the next block are selected randomly and secretly. The choice is made among all wallets that have at least 1 ALGO coin.
Each new block is validated according to Byzantine convention. This happens in 3 steps:
- Offer. Among all the wallets, a “leader” is randomly selected, and he proposes blocks for validation.
- Soft vote. Next, a committee is formed at random from other wallets. From all the proposed blocks, he chooses only 1, which will go for certification.
- Vote confirmation.By analogy with the previous paragraph, another committee is formed. It checks the block for any problems. If no problems are found, it certifies the block for inclusion in the blockchain.
Algorand Mining
It is impossible to mine Algorand, unlike most other cryptocurrencies.
Usually, cryptocurrency mining works on the principle of Proof of Work. In this case, you perform mathematical calculations, thus helping to conduct transactions on the network and keep it running.
Algorand uses a different principle called Pure Proof-of-Stake. By putting it on a crypto wallet and holding it there, you will receive additional coins for this. Thus, you can try to earn using the compound interest effect. Received to your Algorand wallet will bring you new coins and new coins will bring you even more coins in the future. In theory, this can be untwisted indefinitely. The only problem is the amount of time you are willing to spend.
How to buy Algorand?
It is better to buy Algorand only through trusted services, for example, an exchanger Leoexchanger!
How to work with Algorand?
Means of payment. In 2022, you can buy a lot of different goods and services for cryptocurrencies, including Algorand.
Trading. You can try trading ALGO and profit from price changes. Algorand is a fairly volatile cryptocurrency for this.
Long term investment.Just buy ALGO and keep it for a long time. There are chances that its price will rise and it will be possible to sell it cheaper than you bought it, or you will accumulate a large amount of coins, thanks to Pure Proof-of-Stake.
ALGO price dynamics (USD)
As of August 2022, one coin is worth $0.36 and the total market capitalization is $2.5 billion.
How to store Algorand?
There are two main options for storing ALGO – on an exchange and in a crypto wallet.
- Exchange.After buying ALGO on a cryptocurrency exchange, e.g. WhiteBit, you can leave it there. This is the easiest option because you won’t need to install any additional software. There is also a minus – physically, your Algorand is not with you. Losing access to your account on the exchange leads to the loss of your cryptocurrency.
- Crypto wallet.. There are many different types of crypto wallets. They may differ in the place of installation, the frequency of connecting to the Internet, etc. We advise you to read the reviews of users of different crypto wallets and, based on them, find the best option for you.
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