THE BASIC CONCEPTUAL STRUCTURE OF THE ALGORAND BLOCKCHAIN
WHAT IS ALGORAND?
Algorand is a scalable, secure, and decentralized platform for digital currencies and smart contracts. The protocol uses a variant of Proof-of-Stake (PoS) called Pure PoS (PPoS) to secure the network and achieve consensus on block production. Unlike other PoS models, PPoS does not reward, nor risk the reductions of funds from the validator or the user (a loss of funds used to promote honest node and user behavior). Algorand intends to ultimately use its PPoS design to lay the foundation for a chain governance system.
The Algorand blockchain is a scalable, completely permissionless, and decentralized blockchain, and its main objective is to create a transparent blockchain system in which everyone can be successful through the use of the project and application. Algorand is incredibly unique as it tends to solve the Bitcoin trilemma. Decentralization, security, and the well-known scalability problem of Bitcoin.
Algorand is a Boston-based proof-of-stake (PoS) protocol with open participation, scalability, security, and transaction finality. Algorand has a native token known as (ALGO) it is used to transfer value in the network. Algorand uses a pure Proof of Stake (P PoS) and pseudo-random functions to prevent malicious attackers (hackers) from hacking the system.
Algorand was founded by Turing Prize winner and MIT professor Silvio Micali and is a pure blockchain protocol without permission for proof of use. Unlike first-generation consensus mechanisms, Algorand’s technology completes blocks in seconds and aims to ensure instant transaction completion by avoiding forks. Algorand also does not reward validators with freshly minted tokens.
The Algorand node repository focuses on developers and their needs. It was obtained from open sources and is publicly available. Algorand, through its partnership with Flipside Crypto, offers a range of robust development tools, dApp Analytics, and a range of partners built on top of its blockchain, including OTOY, Syncsort, TOP Networks, Asset Block, and more.
ALGORAND: SOLUTION TO BITCOIN TRILEMMA
A few years ago, Vitalik Buterin, the founder of Ethereum, suggested that a blockchain could have a maximum of two out of three properties. Decentralization, scalability, and security.
Currently, transactions on the blockchain are a bit slow due to the blockchain trilemma. Buterin believes on a fundamental level that a blockchain network can only reach two out of three creatures at a time.
It has been found that scalability issues arise in most blockchains as a result of the blockchain trilemma. Some cryptocurrency projects cannot literally handle large numbers of transactions and still focus on decentralization and network security.
To overcome this, Algorand used a proof-of-stake mechanism (Pure PoS). This mechanism uses an approach that is different from other PoS mechanisms. For example, instead of demanding a 100% consensus (vote) from all validating parties (voters), Algorand opted for a consensus with a two-thirds majority.
This is an excellent method that avoids hacking the system in the sense that if you want to attack Algorand, you will have to buy over a third of all Algorand offerings, which are exclusively expensive. When you have that much Algorand, you don’t want it to go down either, do you? Otherwise, they will go under together. What a perfect strategy!
Algorand also planned to enable fast transaction time by enhancing fast transaction finality through cryptographic classification.
With all of these strategies, Algorand will definitely overcome the blockchain trilemma.
The lock confirmation process in Algorand has two phases: the proposal phase and the voting phase.
During the proposal phase, a token is chosen at random, and its owner suggests the next block to be confirmed. In the voting phase, 1000 lucky token holders are selected to form a committee that approves the proposed block.
ALGORAND NATIVE TOKEN (ALGO)
Algorand’s blockchain network has its own official cryptocurrency called Algo to power the borderless economy and incentive system. Here is the allocation of ALGO and how they are distributed. The foundation considers Algos to be a contribution to the stability of the Algorand blockchain and to support the Algorand community, ecosystem development, and research. The ALGO will enter the ecosystem through a variety of channels, including grants for development and analysis, and sales. All these activities are disclosed to our community with full transparency.
The native token of the Algorand blockchain ALGO has a market capitalization of currently $ 261.74 million, and ALGO’s 24-hour volume is now $ 34.30 million.
It has a market capitalization of 48 with a circulating supply of 803,088,849, and its maximum supply is 10,000,000,000 (as of today)
ALGO is traded on 41 exchanges, and the primary exchanges are Binance, Coinbase, and Bit-Z. Binance has the highest exchange volume with 39%, Coinbase Pro with 8%, Bit-Z with 6%, CoinEx with 6%, and others who share the remaining percentage.
USES OF ALGORAND TOKEN (ALGO)
The Algorand blockchain token ALGO has its own principal use to the blockchain, which includes.
The Growth of the Ecosystem: The Algorand team intends to support and accelerate the growth of its ecosystem by using the token from time to time to encourage the construction of projects.
The Algorand blockchain token is used to participate in the consensus and to secure the network.
Used for gambling: The Algorand token (ALGO) is used to bet as a block applicant and participate in the Algorand platform by simply changing your address from offline to online in the Algoexplorer. By only staking the Algorand token ALGO, the nodes will be online.
The Algorand token will be used to enhance the responsible decentralization and will help to ensure stability and security in the Algorand Blockchain.
Identity management Is also one of its uses as it makes sure your identity is not revealed to anyone on the blockchain.
DUST Identity: Ensuring digital integrity, physical security, and end-to-end visibility of supply chains.
With DUST Identity’s innovative and secure interface to physical objects and the digital world, as well as Algorand’s leading blockchain protocol, organizations can jointly provide scalable and proven methods to authenticate physical objects and validate real transactions on the blockchain.
Algorand supports two types of nodes. The relay and participation.
Relay nodes are hardware-intensive and do not take part in voting and decisions, but are used for communication between the participating nodes.
For more information visit
https://www.algorand.com/
https://twitter.com/algorand
https://medium.com/algorand
Written By Naphtali Dabuk
