Algorand Blockchain (ALGO) Overview For Beginners

Algorand is a decentralized, unauthorized blockchain protocol that anyone can use to build applications and transfer value. The Algorand protocol is based on a new consensus algorithm that promotes fast, secure and scalable transactions. Algorand can process 1,000 transactions per second. These transactions are final and instant. Algorand also has a constant supply of 10 billion tokens to add an inflation-resistant mechanism to the network.

Three basic concepts of the Algorand protocol 

• Transactions: Transactions are the basic unit of an account on the Algorithm and network. These are used to transfer values and are validated by all nodes participating in the network.
• Blocks: Blocks are a group of transactions that are collected by a single entity and validated by a consensus algorithm.
• Consensus: The consensus algorithm is responsible for verifying the blocks and ensuring that they meet the requirements of the Algorithm. It also rewards the users who participated in the operation.

Biggest problems of blockchains tackled by Algorand protocol

security, scalability, and decentralization. The Algorithm network, called the “blockchain trilemma,” claims to address three key issues:

Security – The Algorand protocol is safe against malicious attacks, making it ideal for transactions, high-value asset retention, and building secure enterprise applications. Secure at both the network level and the consensus protocol level to protect individual user accounts.

Scalability – The Algorand protocol can handle a large number of transactions per second, making it a more scalable solution than Bitcoin or Ethereum. According to Algorand, “We can scale to millions of users and maintain high transaction rates without incurring significant costs to participating users.”

Decentralization – Algorand is completely decentralized and has no central authority or single point of control. Transactions are validated by nodes participating in the network, and each node has equal say in decision making. This makes the algorithm a highly decentralized system.

What is ALGO?

The native currency of the Algorand network is called ALGO. ALGO tokens are used to pay transaction fees and reward users who participate in the network consensus process.

Transactions with ALGO complete in less than 4 seconds, no matter how many transactions you run in a day. Transaction fees are also minimal. Unlike Ethereum, which is famous for its high gas prices, the cost of trading algo is negligible.

Ways to buy ALGO cryptocurrency

There are several methods for purchasing ALGO. You may buy it directly from another individual in person or over the internet, as you would with any other cryptocurrency.

Alternatively, you may look for a crypto ATM near you that offers ALGO. However, crypto ATM rates can be prohibitive, and there`s no assurance that you`ll be able to locate a counterpart willing to make the trade.  The easiest way to buy ALGO is with a cryptocurrency exchange. Popular exchanges offering ALGO include Binance, Kraken and Coinbase. With these exchanges, you can purchase ALGO with your credit or debit card.

To do this, you first need to get a crypto wallet to hold ALGO. Wallets that support ALGO include Pera Wallet, My Algo, Coinbase, and Ledger.