Algorand Upholds a Vision of Creating a Borderless Economy with Frictionless Finance. Algorand is a decentralized blockchain, known for creating a borderless economy using a pure proof-of-stake (PPOS) and permissionless consensus protocol to deliver a scalable, decentralized, and highly secured blockchain protocol for enterprise use. Apart from scalability and security, this permissionless protocol enables open participation and transaction finality, executed at near-zero transaction cost.
Significantly, Algorand’s aim is very clear – to overcome the blockchain trilemma of scalability, security, and decentralization. Honesty, transparency, and integrity are its hallmarks as expressed in its key principle, “to make cheating by a minority impossible and cheating by the majority stupid.”
One reason behind its reputation is Algorand Protocol’s key properties.
Low computation requirements: The Algorand blockchain protocol requires minimal hardware and software resources which encourages participants with moderate processing power to participate in block consensus.
No fork: By design, the Algorand protocol ensures there is no instance where two nodes simultaneously get a valid block. This further prevents double-spending by adversaries and the formation of branches to the main chain. On the other hand, in a given round, only a single block is certified and added to the chain and by doing so transactions on the Algorand blockchain are immediately finalized.
True decentralization: There is a random and private selection process of choosing committee members to validate every block. These users chosen to approve blocks have diverse backgrounds and spread across the globe therefore eliminating any central point of control on the network.
With these key properties, Algorand enables users to enjoy frictionless financial experiences when dealing with cryptocurrency exchanges, digital securities, and asset tokenization, among others.
Also, the crypto world is richer with Algorand than before, as its protocol increases methods of exchanging value, innovating new tools and processes, deploying new digital assets as well as finding workable solutions to unique blockchain-related challenges.
In brief, Algorand takes blockchain technology to another level as it creates an open crypto space where every individual can develop their decentralized projects on the Algorand blockchain protocol with as much support and guidance as possible.
The core features of the Algorand protocol enable different users to attain their goals as long as they are in line with its vision of an inclusive economy.
Speed of transaction: With Algorand, transactions are instant since the processing time is less than 4.5 seconds. Above that, there is also low risk because of trustless execution. Algorand’s low latency blockchain coupled with layer 1 features like Atomic Transfer enables instantaneous sending of Algo and all assets issued on Algorand (Algorand Standard Assets). This makes it ideal for the e-commerce industry as immediate settlement of payment is crucial to their business process.
Scale: Despite dealing with billions of users transacting every time, all transactions are instant, with no possibility of a slowdown. This is because Algorand uses the Byzantine agreement protocol, which reaches a consensus on a block within a short time. Thus, the protocol has a high transaction rate, with executions carried out at a very low cost. Unlike other blockchains where it costs so high to transact when the network is congested, regardless of the situation, transactions on Algorand will be processed fast and incur close to no fees.
Trustworthy: The Algorand protocol is secure and cannot fork, meaning that the platform will always successfully process all transactions. Typically, when there is a fork, there is a possibility of expansion in branches which will eventually be cut off. All transactions added to the branches will be rendered invalid. On the contrary, the protocol can’t add two blocks at the same time. Therefore, it guarantees the finality of all transactions.
Transparency: Due to no central authority on the network, any network participant can check and verify transactions on the public blockchain. Control is rather distributed among network participants. Data on the Algorand blockchain is public, so every participant can effortlessly read every block.
High security: Algorand leverages multi security mechanisms to secure its network to fosters the building of trusted applications and creating a serene atmosphere to transact securely, Due to this, Algorand has security protocols at both the consensus protocol level and the network levels.
The ALGO token`
Apart from the above key features, Algorand has a high performing and secure native token, Algo. This token powers the borderless economy because it works instantly for all users.
In a like manner, the Algo performs similar functions as fiat currency. For instance, people can use Algo to buy goods and services on various e-commerce platforms. Apart from the low cost and finality of transactions, the Algo transfer takes place on the blockchain, creating verifiable and auditable transaction records.
Furthermore, Algo as a cryptocurrency is very divisible, enabling people to make micro-payments. Interestingly, the micro-payment system will lead to the creation of new products and services.
Above this, the Algo is a tradable asset, allowing people to use it for speculative purposes.
The Algorand Wallet is an intuitive and user-friendly mobile wallet that supports basic wallet functionalities such as sending and receiving Algos & assets created on Algorand blockchain. It currently available for both Android and IOS users can be downloaded from the respective app stores. The official Algorand Wallet supports all Algorand Standard Assets and compatible with the Ledger Nano X hardware wallet.
Besides the above-mentioned features, it has the following advantages:
- Easy to use interface
- It shows the earnings of the user’s rewards for holding Algo
- It has an in-application calculation function to display total asset worth in USD
- Users can view their past transaction notes and history.
- There are instant notifications of transactions.
- It has enhanced security, as it has limited PIN entry attempts.
- Using the Rekeying feature, users can change some configurations without altering the public key.
Algorand has a growing community of enthusiast, developers, and organizations putting to gether their collective efforts to create the next generation borderless economy. The ecosystem filled with passionate individuals and groups are helping build powerful applications and as well as educating the world on the Algorand blockchain protocol.
This piece was written by Ayuba Issaka
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