What is Algorand (ALGO)?

Introduction to Algorand

Algorand is a blockchain platform launched in 2019, designed to solve scalability and consensus issues prevalent in first- and second-generation blockchains like Bitcoin and Ethereum. Founded by MIT computer scientist Silvio Micali, Algorand introduces a Pure Proof-of-Stake (PPoS) consensus mechanism that enables fast, decentralized transactions without compromising security.

Key Features

• Pure Proof-of-Stake (PPoS): Randomly selects validators based on staked ALGO, promoting decentralization.
• Scalability: Processes thousands of transactions per second (TPS) with minimal fees ($0.0014 per transaction in 2022).
• Finality: Transactions are confirmed immediately upon block addition, eliminating forks.
• Passive Staking: Users earn ~5-8% annual rewards by holding ALGO in non-custodial wallets.

How Algorand Works

Consensus Mechanism

Algorand’s PPoS involves three phases:

1. Block Proposal: Randomly selected validators propose blocks using a Verifiable Random Function (VRF).
2. Soft Vote: A committee filters proposals to ensure only valid blocks proceed.
3. Certification Vote: A second committee verifies transactions before finalizing the block.

👉 Discover how Algorand compares to Ethereum

ALGO Tokenomics

• Total Supply: 10 billion ALGO (max by 2030).

• Use Cases:

  1. Paying transaction fees.
  2. Staking for block validation rights.
  3. Earning passive rewards via "auto-staking" (no lock-up periods).

Buying and Storing ALGO

Purchasing ALGO

1. Credit/Debit Card: Buy BUSD (stablecoin) on Binance, then swap for ALGO via the exchange feature.
2. Trading Pairs: Trade ALGO against BTC, ETH, or BUSD in advanced trading views.

Staking ALGO

• Hold ≥1 ALGO in a non-custodial wallet (e.g., Algorand Official Wallet).
• Rewards distribute every 10 minutes automatically.

FAQs

Is Algorand decentralized?

Yes. PPoS ensures no single entity controls block validation—every staker has a chance to participate.

What makes ALGO unique?

Its passive staking model requires no active delegation or locking funds, offering effortless yield.

👉 Explore ALGO staking rewards

Can Algorand handle smart contracts?

Yes. It supports Layer-1 custom blockchains and DeFi applications with low fees.

Conclusion

Algorand stands out with its scalable, decentralized, and energy-efficient PPoS protocol. Whether for developers building dApps or investors seeking passive income, ALGO offers a compelling blend of technology and usability. For deeper insights, check out Algorand’s ecosystem projects or start staking today!