A General Overview of Algorand (ALGO)

What is Algorand

Algorand is a high performance blockchain based on next generation technology that implements a Proof of Stake protocol as well as pseudorandom functions. The project has been called by many as “Blockchain 3.0”, as it is able to solve the well-known problem of scalability found in Bitcoin, while maintaining decentralization and security.

Key Characteristics

The Algorand consensus algorithm is called “Pure PoS”, with network security tied to the honesty of the majority. Compared to other Proof-of-Stake protocols, this has no sanction mechanism or slashing should bad actors misbehave. Instead of bad actors being punished, Algorand chooses to make it impossible for cheating by a minority to affect the safety of the majority. So long as 2/3 of the users are honest, the protocol will continue to work just fine.

  • Voting round: A committee made up of owners of 1000 random tokens is selected to approve the block that the first user proposed. This differs from the fixed committee system found in most Proof-of-Work or Proof-of-Stake blockchains in that the random selection of members of the committee make the protocol highly secure against attacks because they simply won’t know who to target.

The ALGO Token

On June 2019, Algorand held a Dutch Auction ICO where over $60 million was raised, and 25 million tokens were sold at $2.40 each. This ICO happened at the same time as the launch of the Algorand mainnet.

Team

Silvio Micali, a professor at MIT and recipient of several prestigious awards, founded Algorand and has put together a team of business and academic experts. Algorand is unique: it is not like other projects, consisting mostly of entrepreneurs at the helm. Instead, it is composed of researchers and scientists and due to connections with MIT, most of the team are based in Boston.

Buying & Storing ALGO

The greatest volume of ALGO trading is found on Hotbit. It is also listed on Binance, Huobi, OkEX, CoinEX, Coinbase Pro, MXC, Bit-Z, BitMax and Bilaxy.

Partners

At the moment, many leading crytocurrencies back Algorand, including AlgoCapital, USV, Pillar, Applied Crypto Ventures,Lvna Capital, Continue Capital, 11°11 Ventures, Braindchild, Foundation Capital, Hex Capital and many more. In October 2018, the company secured over $66 million in equity funding.

Competitors

EOS (EOS):

Unique / Key Features Against Its Competitors:

  • Algorand uses a Byzantine Consensus-based protocol.
  • Transactions on Algorand transactions are confirmed in less than 5 seconds, and transferred money is available immediately.
  • Algorand is fully decentralized. A consensus is needed for every decision and this is also subject to the will of the majority. All transactions are treated equally, no matter the size.
  • Algorand selects a node randomly by its stake to create a new block. Individuals that are randomly selected then vote on the new block. This method is fast, secure, trustless, highly scalable and without miners.
  • Token distribution is by a unique approach of Dutch Auctions.

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