The world of crypto is equally confusing and exciting. Not only new coins but also projects, blockchain network, and protocols are seemingly popping up daily with huge price movements to complement. One of the new projects that will catch everyone’s attention is Algorand along with its accompanying crypto ALGO.
What is Algorand Blockchain?
- A decentralized blockchain technology network that has a native currency called ALGO is known as Algorand blockchain.
- The main idea behind it was combining features of well-established and mainstream cryptos like decentralization, easy-to-divide tokens, and transactions without any central authority.
- However it should be with some added speed as well as less computer power required for running the system.
- Concerning the market cap, Algorand is the 34th largest crypto.
- It is now priced at almost 76 cents.
- Algorand was valued at very $2.16.
- In 2021, its highest price was $1.71 and 14 cents was its lowest historical price.
What is Algorand used for?
- Similar to other altcoins, it has made efforts of building an ecosystem of apps that the tokens can be made used for.
- Many holders speculatively buy and sell ALGO. However, they are different uses for it.
- Developers of Algorand have a hope of hosting smart contracts that will govern the digital property’s exchange or real-world asset’s digital representations.
- One such example is ANote Music which will allow investors and publishers of music to buy or sell royalties or rights on this blockchain.
- Republic the investment platform makes use of this blockchain to distribute dividends to any investor,
- It has been used for hosting chess rankings.
- One main development area for Algorand is DeFi which is decentralized finance along with its support for digital assets and smart contracts.
- The developers of Algorand envision using its blockchain for many digital assets and the real world too such as points in any game or mortgage escrow payments.
What are the benefits of ALGO?
ALGO is not the one non-Bitcoin crypto that is trying to become the framework for every type of financial program and transaction, there is also Ethereum and many other competitors.
- It is much faster and more efficient than its alternatives.
- Its transaction speed is around 5 seconds.
- But that of Litecoin is 2.5 minutes and Bitcoin is 9 minutes.
- Its developers claimed that ALGO’s speed, architecture, efficiency, or governance makes it much superior as a blockchain ecosystem’s foundation.
How does it work?
- ALGORAND’s use of pure-proof-of-stake makes it distinctive.
- It is different from proof of work. Here the blockchain gets maintained via computers solving some complicated mathematic problems for generating new blocks and confirming transactions.
- It is roughly the way mining of Bitcoin works.
- It is quite secure cryptographically, however the methods need many computer power along with energy use for working properly.
- One of the major dividing lines among crypto types is the difference between proof of stake and proof of work.
- Transactions or new blocks will happen faster and highly efficient with pure proof of stake.
- Holders of ALGO are chosen randomly who will then validate and approve every subsequent block in the chain.
- Such a user group is chosen randomly each time a new block appears.
- It will let this blockchain become global and secure apart from being decentralized.
- The more a user holds ALGO, there is more chance they will get chosen for verifying and validating new transactions and blocks.
- Such a process will allow Algorand to not only approve but also process transactions within seconds as different to minutes with the well-known crypto Bitcoin.
Conclusion
You can create an account at any crypto exchange or some trading platform that will support ALGO such as Binance, Coinbase, etc. Few crypto exchanges may need a user to download a cold or hot wallet for storing the ALGO or other cryptos. But some trading platforms may be handling the storing of cryptos for their investors in different ways. You must have sufficient dollars for the ALGO amount you want and purchase the total coins you wish. Before you invest in crypto, it is crucial to be aware of the basics. So you must learn regarding cryptos such as Bitcoin that is the foundation for this market and newer coins or tokens such as ALGO. You can automate and adjust investment plans to your own risk level or financial situation.