What is Algorand
Algorand is an open source decentralized network that aims to combine the three main features of blockchain simultaneously – speed, security and decentralization.Algorand is designed to be a payments-focused network with fast transactions as it can process over 1,000 transactions per second (TPS) and complete each in less than five seconds.
History of Algorand
Massachusetts Institute of Technology (MIT) professor Silvio Micali founded Algorand in 2017. Algorand consists of a company and a foundation. The Algorand Foundation is an NGO that manages ecosystem growth, prize funding, research, chain management, and decentralization of the Algorand network, while the private corporation is responsible for core network development.
Algorand’s test network was released to the public in April 2019 and the core network in June 2019.
How does Algorand work?
Algorand uses a variation of the proof-of-stake (PoS) consensus mechanism called pure proof-of-stake or Pure Proof-of-Stake (PPoS).
PPoS is a highly democratized PoS consensus mechanism with a low minimum pledge requirement to participate in and secure the network – only a single ALGO token is required to participate.
Algorand achieves its high efficiency and scalability by:
- Participation nodes are included that vote and confirm new blocks in the network blockchain
- Relay nodes are used to provide efficient communication paths
- Continuous compression of information in the blockchain
- Ensures that transactions cannot be altered after a fork ban is imposed
Algorand proposal
The Algorand Foundation claims that the total supply of ALGO is limited to only 10 billion tokens.
The distribution of tokens on the network is as follows:
- In the first 5 years, 3 billion ALGOs will be injected into circulation (initially allocated at auction)
- Participation prizes are set at 1.75 billion ALGO
- Participants in relay nodes will receive 2.5 billion ALGOs
- Algorand Foundation and Algorand Corporation, Inc. also receive 2.5 billion ALGOs
- End-users to receive ALGO 250 million in grants
The Algorand Foundation has also released additional details on how the payout will work and when users can expect to receive new funds for their participation in the blockchain.
How to buy ALGO?
1. Choose a crypto exchange
There are numerous cryptocurrency exchanges and exchanges that range from easy-to-use systems to complex dashboards for advanced traders.
Because Algorand is so popular, you’ll be able to purchase the token on most cryptocurrency exchanges, but it’s advisable to stick to a few of the more popular exchanges like Binance, Kraken, Coinbase, etc. Different platforms come with different fees, security measures, and may include other features, so it’s a good idea to do your research before signing up.
2. Create an account and confirm it
Start with account registration, which is completely free on the aforementioned platforms. For added security, 2FA – two-factor authentication – is also enabled. This way, you and your device are the only ones who can grant access to the account.
You are then taken through a KYC process, which is providing personal information – ID card/passport/driving license details, proof of address (e.g. bank statement or utility bill).
After completing these steps, you are ready to buy, sell and trade Algorand (ALGO), as well as take advantage of various services such as staking.
3. Fund your account
Once your account has been registered and verified, you need to fund the account so you can start taking advantage of the platform’s buying and trading services.
The main deposit options are:
- Credit/Debit Card
- Bank deposit
- Peer-to-peer (P2P)
Where to buy ALGO?
