Algorand: Welcome to the next-generation blockchain platform that wants to eclipse Ethereum

Monday, April 3, 2023

Discover Algorand, the platform that’s taking blockchain to the next level. The ALGO token is now available to buy, sell or trade at SMART VALOR. 

In addition to its ability to provide trust, security and transparency, blockchain technology is poised to revolutionise the way we store and transfer value in the future. Algorand is a blockchain platform that is already implementing much of what we hope to see in the future of crypto.It provides a secure, scalable and efficient platform that allows users to participate in a highly secure and fast network. 

What is Algorand? 

Algorand, dubbed the "Ethereum killer" by some, is a blockchain platform that supports smart contracts and was founded in 2017 by Turing Award winner Silvio Micali. The platform aims to provide a high-performance, secure solution for building decentralised applications (dApps) and facilitating the exchange of value on the blockchain. Algorand also aims to solve the so-called “blockchain trilemma”. 

The blockchain trilemma is a concept in blockchain technology that refers to the trade-off between the three essential characteristics of any blockchain: decentralisation, security and scalability. 

 The trilemma is that achieving one of these goals may come at the expense of the other two. For example, increasing decentralisation may make the network more secure, but may also reduce scalability. Similarly, improving scalability may require sacrificing some degree of decentralisation or security. 

Algorand aims to address the blockchain trilemma by using various unique approaches to its consensus mechanism and architecture. 

  • Decentralisation: Algorand uses a consensus mechanism called Pure Proof-of-Stake (PPoS), which is different from traditional Proof-of-Stake (PoS). In PPoS, each staked token is treated as a separate lottery ticket to participate in the network’s consensus mechanism. This means that there is no minimum stake requirement, and users with even a small number of tokens can participate in the network's consensus mechanism. This encourages maximum decentralisation. 
  • Security: Algorand uses an agreement protocol that ensures that all validators agree on the state of the network. This protocol is resistant to attacks by malicious validators, thus ensuring the security of the network. 
  • Scalability: Algorand addresses scalability by using a block proposer election algorithm that allows the network to process thousands of transactions per second, many times faster than Bitcoin or Ethereum. This speed makes the network suitable for a wide range of use cases. 

Algorand's fields of application 

In terms of application areas, Algorand has a wide range of potential use cases. Some of the most promising areas for Algorand are DeFi and supply chain management. Overall, Algorand's high transaction performance, strong security and privacy features make it an attractive option for developers looking to build fast and secure decentralised applications. In addition, its native cryptocurrency, ALGO, provides a means to participate in the governance of the platform and has a variety of potential use cases as a medium of exchange and store of value. 

ALGO - Algorand's native token  

Algorand also has its own native cryptocurrency called ALGO. ALGO is used to pay transaction fees on the Algorand network and can also be used for staking. The total supply of ALGO is limited to just over seven billion tokens and is currently ranked 37th among all cryptocurrencies with a market cap of over $1.6 billion (as of 22/03/2023).  

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