Algorand & Enterprise Solutions #ALGO
1.What is Algorand?
Algorand (ALGO) is a blockchain platform as well as a digital currency which was founded by Silvio Micali, a cryptographer and professor at the Massachusetts Institute of Technology in 2017.
The Algorand platform is similar to a large payment processor like Mastercard or Visa in that it is designed to process a large number of transactions quickly.
Algorand is a direct competitor to Ethereum because it can host other cryptocurrencies and blockchain-based initiatives.
The platform’s native currency, ALGO, is used to secure the Algorand blockchain and pay transaction fees for ALGO-based transactions. ALGO’s total quantity is set at 10 billion coins, with around 7 billion now in circulation.
Algorand is an open-source blockchain, which means anyone may look at the code and contribute to it. Algorand operates on a mechanism known as pure proof-of-stake (PPoS), which selects network operators from the whole pool of ALGO currency owners.
2. A brief idea on Algorand (ALGO)
Algorand positions itself as a highly efficient, scalable platform that can complete transactions quickly. Algorand does this using a decentralized approach. The Algo takes advantage of the Algorand blockchain’s unique properties. These characteristics make the Algo one of the most strong and reliable crypto-currencies on the market today. They are mentioned as below points;
Speed — In less than 4.5 seconds, an Algo can be sent to anyone’s wallet. You don’t have to wait to see whether your money went through, and you don’t have to check back minutes or hours later to see if it went through — you get almost instant confirmation that your payment went through.
Scale — The Algorand blockchain is designed to serve billions of people. This ensures that your payment will take less than 4.5 seconds, regardless of how many Algo users there are. There’s no stuttering, no confusion — just fast confirmation.
Trustworthy — The Algorand blockchain has been designed to ensure that it does not fork. Forking is a problem in blockchains that occurs when a blockchain breaks into many chains. There’s a chance you won’t know if your payment went through if this happens. There can never be forks using Algorand, so you can ensure that your Algo are precisely where they should be at all times.
Transparent — The total quantity of Algo was created when the Algorand blockchain was launched. On June 19th, 2019, this happened, and 10Bn Algo was born. Anyone can access the public Algorand blockchain at any time to discover how many Algo are currently in use.
Secure — While the Algorand blockchain is transparent in many ways, it utilizes the most advanced encryption (unbreakable digital codes) to ensure that all of your personal and private information in your Algo payment is kept private.
A modified version of the proof-of-stake consensus process is used on the Algorand blockchain. The pure-proof-of-stake technique recruits validators from the full pool of ALGO holders, whereas the standard proof-of-stake method allows cryptocurrency holders to opt into confirming transactions. Every time a new block is uploaded to the Algorand blockchain, ALGO holders who stake, people who agree not to trade or sell their ALGO are rewarded. ALGO, Algorand’s native cryptocurrency, is used to reward ALGO network participants. ALGO is also used to pay transaction processing costs as a utility token.
3.The Difference between Algorand & Ethereum
The blockchain platforms Ethereum and Algorand can be seen as competitors. Both platforms leverage smart contracts and provide infrastructure to allow the creation of new blockchain-based projects.
The consensus process used by the blockchain is one of the key distinctions between Algorand and Ethereum. To “mine” new cryptocurrency and execute transactions, Ethereum employs the proof-of-work (PoW) mechanism, which necessitates a lot of computational power and energy. Ethereum is increasingly moving to the proof-of-stake technique, which is the most widespread and needs blockchain network participants to sign up as validators. Algorand is still using pure proof-of-stake.
Every 12–14 seconds, the Ethereum platform can process a new block of transactions. The Algorand network allows transactions to be completed in less than four seconds.
3. What distinguishes Algorand from other block chains?
Users may find the ALGO cryptocurrency attractive if they feel Algrorand’s technological characteristics will make it the blockchain of choice for developers looking to create and launch new types of decentralized applications.
Algorand claims to be the most efficient and environmentally friendly blockchain. Algorand has been carbon-negative since April 2021, which means the platform purchases carbon credits that more than offset its carbon emissions.
Also investors believe that proof-of-stake blockchains, which reduce the cost of participating in a blockchain’s operation, will eventually prove more successful in the market, Algorand could be a potential addition to their cryptocurrency portfolio.
4.Use cases of ALGO
Through blockchain-based decentralization, Algorand aspires to build global trust among trustless parties by bringing a solution for scalability of the network, speed of transactions and security of the network in the crypto space. Simple designs for producing technology that can remove barriers to prosperity are prioritized by the platform.
The Algorand blockchain supports a range of different projects, many of them focused on decentralized finance such decentralized lending and trade. Other cryptocurrencies, such as stable coins and perhaps a digital national currency, are supported by the Algorand blockchain.
Hundreds of businesses are currently building on Algorand, including fin-techs, startups, financial services, institutions, and defi. The thriving community is fostering a thriving ecosystem of businesses that share Algorand’s long-term vision for the future of finance with real world adoption. Some other sectors where ALGO is used are gaming, entertainment, identity, environmental & infrastructure
5. How ecofriendly is ALGO?
Since calculating the carbon footprint is so dependent on power generation scenarios and the percentage of renewable energy sources, it’s better to focus on another important metric which is the specific finalized transaction energy, which is the amount of energy spent by the entire blockchain infrastructure to complete a single transaction and append it to the common distributed ledger.
Mining is not required on Algorand, as it is on Ethereum’s Pow, which, among other things, lets Algorand to attain carbon neutrality, which is critical for NFTs as they prepare to enter the mainstream and alter entire industries.
Algorand provides environmentally friendly blockchain technology that may be used for years without causing harm to the environment. It’s not only about the infrastructure; Algorand is an environmentally sustainable ecosystem on all levels, as evidenced by its culture and use cases.
6. What is the best way to purchase ALGO cryptocurrency?
ALGO can be bought on cryptocurrency exchange like Binance, Kraken, Coinbase & Huobi.
You can place an ALGO buy order after creating an account with an exchange and financing it with your local currency.
After the transaction is completed, you can keep your ALGO in either a self-hosted or exchange-hosted wallet.
With the above mentioned facts, I hope you did get an overall idea on whats Algorand and what type of potential it has on real life use cases.
Till next time, stay safe and healthy!
#Algorand #ALGO #Blockchain #Crypto #EnterpriseSolutions #Defi
References
- https://ecosystem.algorand.com
- https://algorand.foundation/governance/algo-basics
- https://www.investopedia.com/algorand-algo-definition-5217725
- https://coinmarketcap.com/currencies/algorand
- https://www.algorand.com/ecosystem/use-cases
- https://blog.bitpanda.com/en/algorand-the-carbon-negative-protocol-in-the-spotlight
