Algorand (ALGO) is the native cryptocurrency of the Algorand blockchain, a decentralized, open-source platform designed to support secure, scalable, and fast transactions. It is one of the fastest cryptocurrencies for transactions, outshining Bitcoin and Ethereum. ALGO is based on a pure proof-of-stake (PPoS) consensus mechanism to achieve decentralization and maintain its high speed.
How Does ALGO Work?
ALGO is built on blockchain technology, which is a distributed public ledger (a digital record of transactions) enforced by a distributed network of computers. All transactions occur independently on the blockchain network. The tasks to manage and maintain ALGO occur across the distributed network of computers. Because of this, there is no need for the authority of a central bank.
What is Algorand (ALGO) used for?
ALGO is used to participate in the governance and consensus of the Algorand network. It is also used as a means of payment for goods and services in the Algorand ecosystem. In addition, ALGO can be used for digital identity management to secure and verify digital identities.
History of Algorand (ALGO)
ALGO is the native token of the Algorand Protocol, founded by MIT Professor Silvio Micali. It was released at an ICO of $2.4. Algorand received an initial $4M seed funding investment from Pillar and Union Square Ventures. In 2019, ALGO was released on Coinbase as the token with the fastest transaction.
Pros and Cons of Algorand (ALGO)
Decentralized: In the traditional banking system, a bank can decide to freeze your account and seize your assets at any moment. Your identity is also tied to any transaction you make with your bank card. As long as you hold your crypto on a decentralized exchange (DEX) or hardware wallet, it cannot be seized because it is in your custody.
No middleman: Algorand eliminates the need for middlemen by using decentralized, peer-to-peer networks to facilitate transactions. These networks use distributed nodes to verify transactions, without the need for a central authority or intermediary.
Faster, cheaper transactions: Thanks to their blockchain technology, cryptocurrencies such asAlgorand enable users to make local and global money transfers much quicker than using a bank. TransferringAlgorand is also a lot cheaper than bank transfers.
Opportunities for big gains from investments: The crypto market cap (total value) has skyrocketed over the past decade, with its quickest growth in 2021 when it reached $3 trillion. Many crypto stocks are priced below $1 when they are first released and have the potential to increase to hundreds or thousands of dollars like Bitcoin or Ethereum. Algorand had an initial coin offering (ICO) price of $2.4.
Not completely anonymous: A big claim tied to cryptocurrency is that it is anonymous, so transactions cannot be traced back to your identity. Unfortunately, this is not accurate. Crypto is actually pseudonymous. Your crypto transactions are documented on a public ledger, so it is possible for anyone to trace the trail of the transactions back to you.
Prone to hackers: Because of the earning potential that comes from holding coins like Algorand, crypto wallets and exchanges are often targeted by cybercriminals who want a piece of the pie.
Volatility: It’s very common to suffer financial losses with cryptocurrency because they do not have a stable price. For example, you could buy a crypto coin at $19 one day only for the price to drop to $10 the next day.
Lack of user protection: Algorand transactions are irreversible, so there is no way to reverse or cancel a transaction once it has been completed.
Where To Buy Algorand (ALGO)
You can trade Algorand on major crypto exchange platforms. You are able to buy, sell or use the token for trading on both centralized and decentralized exchanges.
3. Huobi Global
Before buying cryptocurrency, it is important for users to know the risks involved. Because centralized exchanges hold your private keys, you are at risk of losing access to your assets if there is a hack. Holding your cryptocurrency in your own hardware crypto wallet is recommended, but you put yourself at risk of losing your assets forever if you lose your private key or are targeted by hackers unknowingly. In any case, it’s important to do your research before investing in any crypto project; this article is for guidance only and should not be seen as investment advice.
Current supply: 7,199,412,550 ALGO
Max supply: 10,000,000,000 ALGO
ALGO Developer Engagement
Algorand has efforts in place to attract and fund developers. The Algorand website has a developer portal where devs can learn, connect and earn rewards for their building efforts.
ALGO Network Speed
Transaction Time: 45 seconds
Because of its proof-of-stake consensus mechanism, ALGO has struggled to reach wide distribution. The Algorand Foundation holds 0.4 billion ALGO.