What is Algorand? Algorand is a Blockchain network that offers high scalability and security to its users. In this article, you can access answers to questions such as what is Algorand, what it offers, what is ALGO coin, how it works, what it is used for. As Kriptokoin.com, we have prepared it for you. Let’s examine the project together.
What is Algorand? What does the project offer?
Launched in 2019, Algorand is a Blockchain network developed by Silvio Micali, one of the professors of MIT, one of the best universities in the world. The project set out to solve the main problems in the field of blockchain, such as security, scalability and decentralization. In this context, Algo is designed as a blockchain that offers high scalability and security with a decentralized structure. The native cryptocurrency of the network is ALGO coin.
Decentralization, scalability and security are the most important goals of Blockchain networks. However, many networks can only fulfill two of these three elements. This is because high security and decentralization reduce scalability, and high scalability and centrality leave the network vulnerable to cyber attacks. Algorand only requires a two-thirds consensus from validators to approve transactions. To bypass the system, it is necessary to own more than a third of the platform’s token supply. With a market capitalization of the network of almost $9 billion, this is nearly impossible to achieve. The network is secured by the Pure Proof-of-Stake (PPoS) mechanism described above.
What is ALGO coin? What is it used for?
ALGO coin is the native cryptocurrency of the Algorand network. Altcoin has several use cases within the network. First of all, ALGO is an altcoin with a staking feature. Users can earn interest income at maturity by locking their ALGO assets with a certain maturity. In addition, transaction fees paid for transacting on the network are paid through ALGO. Users can earn rewards on the network through ALGO and pay for all the services the blockchain offers in altcoins.
At the time of writing, ALGO coin was the 30th largest cryptocurrency with a market cap of around $5.3 billion. In addition, there were 6.71 billion coins in circulation, corresponding to 67% of the cryptocurrencies, whose maximum supply was capped at 10 billion units.
What are the advantages?
- The blockchain network has several partnerships with big business people.
- Although not a pioneer in areas such as DeFi and dApp, it has managed to attract users due to its high scalability.
- Algorand has several applications for identity security, insurance, stablecoins, crypto assets, and governments. Popular data analytics platform Chainalysis is one such application.
- ALGO coin has a stakeable structure. This attracts investors who want to earn passive income to the network.
What are the disadvantages?
- Countries around the world are introducing various regulations to prevent cryptocurrencies from becoming mainstream. Algorand could be adversely affected by these regulations, just like any other blockchain.
- Algo has to contend with well-established and high transaction volume competitors like Ethereum. The project may be overshadowed by other blockchain networks in the future.
- ALGO coin is a highly volatile altcoin like other cryptocurrencies. The value of highly volatile assets fluctuates over a wider price range.
What is Algorand? How to buy ALGO coins?
ALGO coin is supported by many reliable and high-volume cryptocurrency exchanges. These exchanges include Binance, OKX, Bybit, FTX and DigiFinex. Investors interested in the Algorand project should first become a member of one of these exchanges. Fully registered users can purchase altcoins by depositing funds into their wallets.