Cryptocurrencies are developing with more innovations, thanks to technology and curiosity. There’s ALGO, a new cryptocurrency and blockchain platform touted as Ethereum’s primary challenge. It’s open-source, decentralized, and has high-speed transactions. Before investing in any cryptocurrency, it’s important to understand its basics. This article introduces Algorand Coin, what it is and how it works.
What Is Algorand Coin?
Algorand is a decentralized and open-source blockchain technology network with a native currency known as the ALGO coin. This means Algorand (ALGO) is both a cryptocurrency and blockchain platform. ALGO crypto is used to secure the Algorand blockchain platform and payments for all Algorand-based transactions.
Launched in June 2019, Algorand solves the Blockchain-cryptocurrency Trilemma of transactions’ speed, security, and decentralization. The idea behind Algorand was to achieve near-instant transactions while allowing larger volumes, much like fiat systems like Visa and Mastercard. This is why ALGO supports 1,000 transactions per second (TPS) and below five seconds of transaction finality. The CoinMarketCap places Algorand as the 34th largest cryptocurrency of all coins or tokens regarding market cap.
What Can You Use Algorand For?
Algorand intended to build up an ecosystem of various applications that can support other tokens. Holders can buy and sell Algo speculatively, hold it, or use it for other purposes. Algorand can be used to host other blockchain-based projects and cryptocurrencies, making it the closest competitor to Ethereum. Algorand blockchain also supports various projects focused on decentralized finance. Algorand developers picture using its blockchain for various digital and “physical” assets, such as game points and escrow payments for assets like mortgages.
How Does Algorand Work?
Algorand is a unique crypto that uses a Proof-of-Stake (PoS) consensus mechanism to validate and confirm transactions. After validation, it distributes ‘validator rewards’ to holders of ALGO. This makes the platform secure, diverse, and more efficient. Here’s what we’re saying:
Validators — ALGO holders — who stake their ALGO coins (agree not to sell or trade) are randomly selected from the pool and rewarded every time a new ALGO block is added to the Algorand blockchain. The more ALGO a user stakes, the more they’re likely to be selected as validators to verify and validate new blocks and transactions. With its strong throughput capacity and equitable incentivization, Algorand can manage high-level transactions quickly and efficiently. Algorand is also an entirely open-source and decentralized blockchain. This means that anyone/user can view and contribute to its code.
How Can I Buy ALGO Coins?
You can buy ALGO coins through major cryptocurrency exchanges such as Kraken or Coinbase. If you want to buy Algorand in Canada, your best bet is Netcoins. After establishing an account either with Netcoins or an exchange platform and funding it, you can order ALGO. You’ll wait for the purchase to be completed, then store your ALGO in a wallet — hosted or self-hosted.
Endnote
Algorand is a unique open-source and decentralized crypto and blockchain network. Its unique structure leverages a two-tiered validation Proof-of-Stake (PoS) consensus mechanism to achieve transaction security and increase speeds with almost instant finality. After validation, ALGO holders are rewarded with Algorand’s block rewards. It’s the primary competitor of Ethereum and one of the world’s most secure digital currency systems.