Algorand is the Native Token within ALGO’s BLockchain network. It plays an important role in transactions and store value. In addition, ALGO Token also participates directly in the Proof of Stake consensus mechanism and transaction confirmation. So, today, we will get to know about Algo coin (Algorand)
What is Algo coin?
Algorand is a permissionless blockchain network whose existence originated as a response to blockchains with slow transactions such as Bitcoin. The Algorand network was launched in June 2019 by Silvio Micali, a computer science professor and a winner of the Turing Award.
Alt: What is Algo coin?
The platform helps remove the limits of the rapid adoption of blockchain technology, by allowing developers to build scalable and secure applications on the network. The Algorand Blockchain is powered by the pure Proof-of-Stake built on Byzantine agreement consensus. Any user could be randomly selected to both propose blocks and vote on others’ proposals. The weight of proposals and votes is determined by their stake. Thus, the transaction speed increases, participation cost decreases, and no forks can take place.
Since its inception, Algorand has found increased adoption amongst decentralized application (DeFi) networks including the Pocket Network, Circle, IDEX, and others. In more recent news, a new social media platform, LoveChain, has been built on the Algorand blockchain. It will allow its users to gain control over their data and take advantage of a rewards system that will introduce LoveChain’s native token.
There are currently 6.1 billion ALGO coins in circulation with a maximum of 10 billion. The entire supply of ALGO was minted at the time of its launch in June 2019. According to CoinMarketCap, the market capitalization of Algorand coin is $11.5bn (£8.4bn), which ranks it at number 18.
The price of ALGO coin launched at $2.16 in June 2019 and fell to its all-time low of $0.19 on 26 September 2019. It has been under the launch price until only recently when it reached an all-time high of $2.38 on 12 September 2021. Currently, the coin is still under its launch price and as of 14 October, it is sitting around the $1.87 mark.
How to buy Algo coin?
There are 3 steps to buy Algo coins
Step 1: Create an account
Creating an account on CoinList takes minutes. You’ll need to provide identity information. And we require 2-factor authentication for added security.
Alt: Create an account on CoinList
Step 2: Deposit U.S. dollars or crypto
Funding with U.S. dollars can be done with wires or ACH. You can also deposit U.S. dollar-based stablecoins, Tether, USDC, and DAI. And you can deposit BTC, ETH, LINK, FIL, UNI, MKR, COMP, ALGO, and other cryptocurrencies.
Step 3: Buy ALGO
Once your deposits have cleared, you’re ready to go. You can store your ALGO in your online CoinList wallet for free.
What makes Algorand coin different from the rest?
If you’re still confused about exactly what makes Algorand coin different from other cryptocurrencies, let’s delve into its standout features.
The “Blockchain Trilemma”
You probably understand how trade-offs work, one good thing (e.g., saving 50% of your income) usually comes at the expense of something else (e.g., living a very frugal lifestyle).
The world of blockchains is no exception – there’s one particular tradeoff known as the “Blockchain Trilemma.”
Developers have always struggled to create a platform that’s simultaneously scalable, secure, and fully decentralized. If it does two of these things successfully, the third must be sacrificed – or at least, not as effective as it could be.
But Algorand’s founders didn’t want to sacrifice anything.
So, Algorand aims to handle each aspect of the trinity simultaneously through its features:
- Pure proof of stake protocol (aids decentralization)
- Instant verifiability (security)
- Transaction management systems (scalability)
MIT Professor Silvio Micali founded Algorand back in 2017. He has received prestigious prizes like the Turing Award for his contributions to cryptography.
Micali brought other MIT professors on board to join the Algorand team including a CTO who has previously worked at Google and won awards for his work in research and security.
Currently, Algorand is mostly used by developers creating other applications on the blockchain called Dapps.
What problems does Algorand solve?
The Algorand project development team wants to build a scalable and permissionless blockchain platform. Some features of Algorand’s Blockchain are as follows:
- Trust: Algorand provides decentralization and encryption tools to ensure reliability for users on the network. Anyone can contribute to and through the PPOS consensus mechanism. ALGO tokens will be stored in a distributed manner across global numbers without centralizing in one place.
- Transparency: Anyone can create transactions and check previous transactions on Algorand network.
- High transaction speed: Algorand improves the transaction speed, meeting the transaction needs of users almost immediately.
- Permissionless: To ensure the Permissionless nature, Algorand’s Blockchain network will only require users to possess the minimum computing power to participate. This will attract and create conditions for many people to participate.