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Is Algorand Worth An Investment in 2022?
Algorand is a highly scalable blockchain cryptocurrency protocol built to bring together the space between traditional finance and blockchain technology. It aims to give its users access to borderless decentralized financial services.
Algorand is building next-generation financial protocols and products that will enhance the power and utility of Smart Contract-enabled Blockchains.
The Algorand Blockchain protocol aims to give access for users to create and use Cryptocurrencies, Non-Fungible Tokens (NFT) security, and Stable coins.
With a native Token known as the ALGO Coin, The protocol is built to be a decentralized, free public blockchain network that is highly interoperable and scalable.
The foundation of the blockchain protocol has designed the world’s first proof of stake foundational blockchain that operates for both individuals and businesses.
We can expect to see both public and private blockchain networks from Algorand in the future and also a 2 smart contract functionality.
Founders Of Algorand
The founder of Algorand is Silvio Micali, a 67-year-old cryptography pioneer who hails from Palermo Italy. He is a computer scientist and a professor at the Massachusetts Institute of Technology (MIT).
Micali focuses his research work on cryptography and information security.
Born on October 13, 1954, The MIT professor is also known for his Blum–Micali algorithm which is a cryptographically secure pseudorandom number generator.
What is the ALGO Coin, The Native Token Of Algorand
The native cryptocurrency for trading Algorand is the ALGO Coin, The Token has a total supply of 10 Billion tokens of which 3 Billion of the Tokens will be circulated in the market by the end of its first 5 years including the 225 Million of the Tokens that were auctioned off at the launch of the coin.
The main use of the ALGO Token is to make purchases in the Blockchain-based network. ALGO has a tokenomic structure and a 10-year distribution ending in 2030.
As of the time of writing this article which is December 14, 2021, The live market price of the ALGO Token is $1.36 USD and a 24hr trading volume of $284.000,287 USD. Algorand has seen a downward price movement of 1.82% in the last 24hr.
It has a coinmarketcap ranking of #23 and a live Marketcap of $8,618,050,287 USD. Currently, it has a circulating supply of 6,328,278,665 ALGO and a maximum supply of 10,000,000,000 ALGO Tokens.
The ALGO Wallet
The official wallet for the ALGO coin is the ALGO wallet which is also called the MyALGO wallet. Built by the Algorand team, it is a simple, secure and fast wallet to hold, manage and transact your ALGO asset.
With the ALGO’s in the wallet, it automatically generates profits for the holder unlike other crypto wallets and exchanges
Where Can You buy The Algorand ALGO Token
ALGO can be bought on any crypto exchange like Coinbase and OKEx with your credit or debit card. First of all, you will need to create an account and verify on these crypto platforms before you can purchase Algo or any other crypto. Also, you need to create an ALGO Wallet and get approved.
The above two exchanges are not the only exchanges you can buy ALGO from. Some other crypto exchanges are:
How Algorand Work
The main thing that makes the Blockchain protocol unique is its Proof of Stake(PoS). Built on Byzantine consensus. It is very different from Proof of Work (PoW) where the network is managed with computers working to produce new blocks and approving transactions. This is basically how bitcoin mining works.
But with the Proof of Stake method of Algorand, Each holder is one way or the other part of the choosing of new blocks which is proportional to the number of Tokens in the system.
Holders are automatically and secretly picked to propose blocks and vote on proposals.
With the proof of stake method, New blocks and transactions are faster and more efficient. Holders of the cryptocurrency are picked to validate and approve each proposed block in the chain. These holders are randomly selected whenever there is a new block.
Developers of Algorand say this process makes the blockchain to be global, secure, and decentralized.
The likeliness of being selected to validate and approve blocks and transactions depends on the number of holders.
This method makes the Algorand ecosystem work in seconds and faster compared to other networks like Bitcoins.
What Makes It Algorand Unique
Algorand has certain features that make it unique from other cryptocurrencies or networks. Here I’m going to list and explain some of these features of the blockchain-based protocol that makes it so special.
- Algorand Core Protocol: Algorand allows its users who don’t have much technical knowledge to build and establish flexible financial tools and services on its network protocol.
These services offer different functions and play several roles in the network protocol. Moreover, the Algorand protocol uses the pure Proof of Stake consensus mechanism to maintain a strong permissionless blockchain ecosystem.
- Proof of Stake: The pure proof of stake consensus mechanism enhances the speed, scalability and ensures they are well kept in the blockchain network.
- Also, the proof of Stake feature allows near-instant block confirmation and transaction approvals, furthermore, the network will never be forked, considering the uncertainty that has crashed many well-established blockchains.
For a proposed block to be approved, it must first be endorsed by a soft vote. This vote takes a better look at the proposals and filters them into one.
After that, the committee of holders cast the certification vote. From there every node in the network receives a certificate for the selected block, which is written into the ledger.
Using cryptographic sortition, Algorand selects users to propose blocks for each round. Then, a selected committee of voters must receive a majority vote from participants before a block is certified.
Furthermore, the byzantine agreement protocol is strong enough to hold any number of bad actors across the network. Looking that honest actors have a large number of the total amount of ALGO to secure the network
This consensus mechanism is one of the many features of the proof of stake consensus mechanism.
Algorand Vs Ethereum
ALGO is seen as a token that can challenge or take on Etheruem according to experts. Ethereum is one of the biggest and most notable altcoins but there are some differences that make experts and investors look to ALGO.
Etheruem 2.0 and Algorand networks use a Proof of Stake to build and generate new tokens, But users only need 1 Algo to perform this action whiles Ethereum 2.0 needs 32 Ether to perform that action which is very high.
Furthermore, the high rising fees on Ethereum have made Defi developers move to Algorand to develop their application. Fees on Algorand seems to be lower than Ethereum.
Before making up your mind to invest in any cryptocurrency, it is very important to know some basic information about the crypto so you know what you are up against.
Algorand sees a future ‘where everyone creates and exchanges assets efficiently, transparently and above all securely’. With its performance and features like the proof of stake, consensus mechanism, and low transaction fees it is quite safe to say ALGO is good for investment since it looks very attractive in the market.
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