The Algorand platform and its ALGO token, marketed as the cornerstone of the future “borderless economy”, are committed to the cause of balancing stability, scalability and decentralization at no cost to one another.

Algorand

What Is Algorand?

Algorand was born out of the desire to solve the so-called “blockchain trilemma,” which argues that one can not have full-blown decentralization, scalability and security on one blockchain platform unless at least one aspect is toned down to accommodate the other. In other words, creating a powerful decentralized platform would make it unavoidable, for example, to harm its capacity for security and scalability. The proposed response to this challenge came in the form of the Algorand network, launched in June 2019 as a global project aimed at facilitating the decentralization of the digital economy focused on open and permissionless access, instant verifiability, internally developed Pure Proof-of-Stake protocol, and transaction management framework capable of scaling custom blockchain projects.

Algorand’s central ideology revolves around the concept of “democratic” user participation. Algorand introduces its updated Proof-of-Stake and self-validating transactions instead of the mining-based Proof-of-Work algorithm that Bitcoin and other cryptocurrencies use. This Boston-based initiative was developed by Silvio Micali, a professor at MIT and Turing Award winner, an annual honor known as the Nobel Prize in Computing. Joining Micali is the rest of his blockchain team of experts and researchers. Algorand was listed following a public sale in June 2019, with its booming prices after initial excitement eventually stabilizing. The project’s Algorand Foundation reported the sale manages to raise some USD 60 million.

Algorand

What Is Algorand Trying to Do?

The project Algorand has set itself a list of goals that depend on the effective implementation of its concept and tech:

How Does Algorand Protocol Work?

Algorand runs on the blockchain which employs a Pure Proof-of-Stake-based decentralized Byzantine agreement protocol. There are many features in the Algorand protocol that should set it apart from similar competing solutions:

algorand

How Does Algorand’s Pure Proof-of-Stake Promote Security?

Based on the nature of the Pure Proof-of-Stake Algorand protocol, the entire principle of defending its users from future attacks does not depend on the fear of fines but on rendering malicious acts by a minority of users impossible:

At the same time, this approach is focused on the replaceability of the users and the lack of communication among them. Based on the necessity to have the user’s private key to complete the block validation process, malicious users are unaware of who is actually important to the next block generation. Since only users are aware of their selection, potential opponents will find it too late to target a particular user when they finally learn who has been selected as a participant.

Other Technologies and ALGO Availability

Along with the innovations already introduced, the Algorand developers plan to add many new features that would fine-tune this platform’s current capabilities:

As of September 2019, the market cap of the Algorand currency stood at 113 million USD, down from its historic peak of 156 million USD in August 2019. At the same time, out of the total expected supply of 2.8 billion tokens, about 291 million tokens were found in circulation.

ALGO tokens are available on cryptocurrency exchanges such as Binance and others for trading.