The Algorand (ALGO) cryptocurrency is a simple autonomous, decentralized blockchain-based network supporting many applications. The Algorand (ALGO) cryptocurrency systems are scalable, efficient, and secure, with all the critical properties for practical applications in the real world. Furthermore, Algorand (ALGO) cryptocurrency supports computations that require reliable performance and guarantees to create of new trust forms. Algorand (ALGO) cryptocurrency, in simple words, is an open-source payment focussed blockchain network that focuses on solving one of the most persistent problems facing the cryptocurrency that is scalability. To do that, Algorand (ALGO) cryptocurrency employs a novel and more scalable form of POS (Proof of Stake), which is a consensus mechanism that is a bit critical for both securing the blockchains as well as making sure that nobody can create any new tokens out of thin air that they did not earn.
The Algorand (ALGO) cryptocurrency became life in June 2019, and it was much capable as it could handle around 1 million transactions per day as of December 2020. The transaction metrics are also available. Furthermore, the ICO (Initial Coin Offering) of the Algorand (ALGO) cryptocurrency was held in June 2019 with the Algorand (ALGO) cryptocurrency token price of $2.4.
Who Are The Founders Of Algorand (ALGO) Cryptocurrency?
Silvio Micali is a professor of computer science at the Massachusetts Institute of Technology and the founder of the Algorand (ALGO) cryptocurrency. Furthermore, Micali received the Turing Award in 2012 for their fundamental contributions to the theory and the practice of secure two-party computations, cryptocurrencies, electronic cash, and blockchain protocols. It makes him one of the foremost creators of Algorand (ALGO) cryptocurrency worldwide.
What Makes The Algorand (ALGO) Cryptocurrency Unique?
The Algorand (ALGO) cryptocurrency was invented to improve the system’s efficiency and speed up the transactions in response to the slow transactions of some popular cryptocurrencies like Bitcoin and other blockchains. In addition, the Algorand (ALGO) cryptocurrency is designed so that there are lower transaction fees with no mining, as Bitcoin is an energy-intensive process because it is based on a permissionless pure (POS- Proof of Stake) blockchain protocol.
How Does The Algorand (ALGO) Cryptocurrency System Work?
The Algorand (ALGO) cryptocurrency blockchain operates with the help of a specific consensus mechanism known as POS (Proof of Stake). A Proof of Stake or POS blockchain is there, which gives different users who stake an amount of the native cryptocurrency on the network where the tokens are locked up in a smart contract. Furthermore, it also comprises the ability to validate different transactions and create some new blocks. The validators for doing this also receive an extra interest in their payments on the staked assets.
Mainly speaking, the Algorand (ALGO) cryptocurrency’s consensus protocol works by selecting a block proposer with a set of the voting committees at each block round to propose a partnership, thereby validating the proposal respectively. The committees and the proposal are chosen randomly from the pool of all the token holders. The accounts that hold ALGO and the likelihood of being selected are proportional to the stake of different versions in the network, that is, how many ALGO has relative to the whole.
The holders of the Algorand (ALGO) cryptocurrency can easily register to participate in the consensus, which means that they can participate in proposing and voting on the new blocks. Additionally, it also acts as a utility token. If you build an application, you will need to ALGO to pay the transaction fees and serve as minimum balance deposits if you want to store some data on the blockchain.