Algorand is an open source and decentralized blockchain network with a native cryptocurrency, ALGO, that combines traditional and decentralized finance. It takes advantage of a two-tier structure and a unique diversity of Proof of Stake (PoS) consensus mechanism to provide instant transaction termination.
Interested in Algorand (ALGO), but not sure what it’s all about? Read on to learn everything you need to know about the project, how to buy Algorand, and more.
Let’s dive in.
Algorand: the basics
Algorand is an open source decentralized network designed to solve the problem of achieving scalability, security and decentralization in a single blockchain network. It uses a unique Proof of Stake mechanism to enable full decentralization with the highest degree of security and scaling with near-instant finalization, i.e. processing over 1,000 transactions per second (TPS) and achieving transaction finality in less than five seconds.
Algorand was launched in June 2019 by computer scientist and MIT professor Silvio Micali, and aims to provide the foundation for businesses in a decentralized economy. Algorand distributes verification rewards to all holders of the original ALGO cryptocurrency. The system is based on ALGO holders and ALGO block producers, i.e. knot runners.
Algorand is able to host decentralized application (dApp) development and provide scalability. It offers an alternative to Ethereum’s smart contract functionality while offering more efficient scaling with Pure Proof-of-Stake. With the Algorand Standard Asset (ASA) feature, users can publish new tokens on the network or transfer existing assets to the Algorand blockchain and enjoy much higher throughput and much lower transaction fees.
The Algorand Network achieves security, scalability, and decentralization in one place using a Pure Proof-of-Stake (PPoS) consensus mechanism that uses a Byzantine protocol protocol. Therefore, in the event of a breach, ALGO balances owned by network participants will be protected with unique keys generated through automation.
The Algorand blockchain is secured by Pure Proof-of-Stake, where only users with ALGO stakes can attempt to perform malicious activity. The network automates the tolerance of many malicious users as long as most users are honest and work for the Algorand blockchain.
Malicious activities do not pay off because even if the majority owner decides to engage in malicious activities, the value of ALGO will deteriorate and the value of users’ money will decrease.
Transactions are final and immediate due to effective ALGO expansion. Aggregate supply is limited to regulating supply and adding an anti-inflation mechanism to a decentralized economy.
Use cases for Algorand
Many organizations, such as fintech, startups, financial services, foundations, and DeFi, are currently building on Algorand Blockchain.
Find some practical cases using the platform below.
Tether joins Algorand – it integrates ASA Algorand 2.0 technology and launches the first blockchain-based stablecoin. After switching to the Algorand blockchain, Tether has become suitable for micro-payments, offering instant transactions with low fees.
Algorand has also partnered with popular company Circle to provide enterprise-grade solutions to facilitate the conversion of USDC-based stablecoins (USDC) into fiat currency.
Reason to buy ALGO
There are several reasons to buy ALGO: its innovative technology and functionality, network facility factors, and limited supply. Algorand has a limited supply of 10 billion ALGO, which was minted at the beginning of Algorand. This money is distributed as participation bonuses to contract runners, end-user grants, and the Algorand Foundation.
Users of the platform must maintain a balance of at least 1 ALGO to earn a share of the new cryptocurrency the program generates each time a block is added to the blockchain. This is staggering, since, over time, roughly 20% (1.75 billion) of the 10 billion ALGO that will ever be created will be given to those who help power the network.
Where to buy ALGO
Algorand is available on most cryptocurrency exchanges, such as Binance, OKEx, Huobi, and KuCoin.
How to buy Algorand
To purchase ALGO, you will first need to choose a safe and trustworthy exchange. You can buy Algorand via credit or debit card, or bank transfer directly on the exchange. Follow our step-by-step guide to buying ALGO:
- Open an account online. You will need to open a brokerage account before you can buy Algorand. After opening your account, you will get a trading platform that you can use to buy and sell cryptocurrencies.
- Purchasing a wallet (optional). Hardware and software wallets help you store your tokens and coins more securely. A hardware wallet stores your investments in offline “cold storage,” while a software wallet is a computer or mobile app that stores your tokens online. Consider the Algorand wallet, which provides users with a higher level of security for ALGO. It comes with a unique and simplified setup that delivers your key combination in less than a few minutes.
- Make the purchase. Now, you are all set to buy Algorand. Ensure that your account has full trading capabilities and is actually funded through a linked bank account, credit or debit card.
You are finally ready to place an order. There are two most common types of requests:
Market orders: A market order tells your broker that you want to buy a specified number of ALGO at the current market price.
Limit orders: The limit order tells the broker that you want to buy a specific number of ALGO at a specific price or less.
Where do you keep ALGO
Many wallets support ALGO cryptocurrency.
You can store ALGO in hardware wallets or cold wallets, such as Ledger or Trezor, which are among the most popular and secure options for storing Algorand hardware. These wallets use the highest possible security features, and you can add up to 100 unique apps on a single device.
If you prefer a high-level security software wallet for ALGO, your best option would be Algorand Wallet, which is Algorand’s proprietary software wallet option. MyALGO Wallet is another popular choice among Algorand users.
To make sure this is the right time to invest in ALGO, check the Algorand price and always do your research before putting your money into any project.
last thoughts
Algorand is a powerful platform that enables scalability, security, and complete decentralization due to the use of PoS. It offers vital technology innovation, a very fair coin reward structure, developer support, and real-world use cases. With the ability to process 1,000 transactions per second, Algorand is also one of the fastest blockchain networks on the market.
Algorand can become a valuable asset despite its volatility due to limited supply, technical features and scalability.
