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algorand

What Is Algorand? How To Buy, Expectations And Predictions. Everything You Need To Know About ALGO

Today we are going to talk about Algorand, which you may already know but may not have invested in yet. It is one of the most promising cryptocurrencies in the world right now. That is why it is good to inquire about this crypto project.

We’ll also tell you how Algorand works, where you can buy it and why you should. In short: everything you need to know about Algorand is covered in this article! But before you read this article, take a look at this video

What is Algorand?

Algorand is a blockchain project that aims to create a transparent system in which everyone can be successful through decentralized projects and applications. The Algorand Foundation provides serious support to developers in launching the network and developing it.

The main feature of this project is the open source public blockchain . Algorand ‘s consensus algorithm promotes the performance, security and openness of a decentralized network. Thanks to this system, Algorand’s processing capacity can compete with that of well-known financial and payment systems.

ALGO was first distributed through an IEO on Binance . The tokens were distributed through a Dutch auction, as the creators are confident that the value of the asset should be determined by the market itself.

A Dutch auction is a public bidding auction structure where the bid price is determined after all bids have been taken into account to determine the highest price at which the total offer can be sold. In this type of auction, investors bid for the amount they are willing to buy in terms of quantity and price.

Most notably, Algorand distributes the ALGO cryptocurrency it introduces to its economy with each new block to anyone who has a certain amount of the currency in their wallets. To be clear, from the moment you buy ALGO you become part of the blockchain and for that you get 6% rewards on the starting value over the whole year.

Algorand also allows users to create smart contracts and tokens that can represent both new and existing assets. These features have successfully attracted several venture capitalists in ALGO’s first private sale to fund the development of the platform.

Who is behind Algorand?

Founded by computer scientist and Massachusetts Institute of Technology (MIT) professor Silvio Micali, Algorand may be rare in that it was founded by an established academic who already had a distinguished career when it launched.

Micali, for example, is the recipient of a 2012 Turing Award. This is a remarkable award in the computer science world, and he received it for his work with colleague Shafi Goldwasser.

According to the Association for Computing Machinery, which awards the honor annually, Micali has helped make cryptography a “more precise science” through work that formalized basic concepts about some of the essential elements of the field.

Micali would co-author the white paper on Algorand in 2017 with Jing Chen, a professor at Stony Brook University. This groundwork has been further elaborated by other academics and cryptographers in white papers available on the project’s official website.

This work is funded by the Algorand Foundation, which is a Singapore-based company established to advance the technology and has been awarded ALGO tokens for its efforts.

How does Algorand work?

While in PoS the network requires a 100% consensus of all validators, Algorand only requires a 2/3 consensus. This means that with 1/3 of the ALGOs in your possession, you are theoretically able to attack the network. In practice, however, this is not possible, as this would be very expensive.

A created block cannot be changed on this blockchain. This means that a transaction is completed as soon as a new block appears. The network randomly and confidentially selects the users who participate in the consensus protocol.

The proposer of the bloc is chosen at random, as well as the 1000 strikers responsible for approving the proposed bloc. To become a striker, you must first register yourself. There are no restrictions on the number of ALGOs one owns. You just need to be online to participate. There are 2 types of nodes: the classic staking node (which is called participation), and the relay nodes (which do not participate in the consensus).

Algorand uses a fee system similar to that of Ethereum. It rewards strikers in ALGO.

The ALGO Token

The Algorand Foundation, the non-profit organization that oversees and funds the development of the protocol, claims that only 10 billion tokens of its ALGO cryptocurrency will be created. Algorand also has its own block explorer, which keeps an official overview of its outstanding stock.

This is the breakdown of the ALGO tokens:

  • 3.0 Billion – These will be released for sale.
  • 1.75 billion – Rewards for participation (spread over time).
  • 2.5 Billion – To support the relay nodes (spread over time).
  • 2.5 billion – Algorand Foundation & † Algorand, Inc.
  • 0.25 billion – Subsidies for end users (spread over time).

The Algorand Foundation has also released additional details about how payments will work and how soon users can expect to receive new funds for their participation in the blockchain. So this indicates that it is a very open project that has no secrets from the outside world.

Why should you buy Algorand?

For many, Algorand is one of the most underrated cryptocurrencies out there. With a market cap of over $4 billion, it has already shown it has a strong base and community.

Likewise, Algorand is arguably the most sophisticated team in terms of intellectual work on the blockchain. These are the same people who are trying to solve the famous blockchain trilemma. This trilemma states that it is impossible to create a stable balance between the 3 fundamental elements of blockchain, namely decentralization, scalability and security.

Algorand solves the trilemma by using a specific protocol called PPoS, a kind of radical and full proof of stake. This protocol is lightweight, which makes transactions fast and cheap.

What are the benefits of Algorand?

Algorand is a public blockchain. This means that the code is open source and can be cloned, copied and even used in private or authorized blockchains. For the followers of Algorand, it is one of the most robust blockchains out there, with the fastest transactions and lowest costs. Algorand is also a first-class infrastructure for application developers.

There is a very qualitative dApp support that guides developers. They are provided with a web API.

Finally, Algorand has a top-notch dApp support. Decentralized applications are a hot topic, and Algorand offers a web API and SDKs for several languages, such as JavaScript, Python, Java, and Go. The documentation is very accurate and the community responds quickly.

Algorand is also an excellent platform for creating and staking NFTs. In addition, NFT projects in the music sector have also been proposed, such as the Opulous project.

To understand the benefits even better, it is useful to know the following network performance:

  • It takes less than 5 seconds to complete a transaction
  • There is the possibility to transact with very small amounts such as 0.0001 ALGO
  • Very low transaction costs (at about 0.001 ALGO)
  • The Marshall Islands use the Algorand network for their national state currency: the SOV.
  • The blockchain is secure and scalable. The protocol guarantees a high speed of payment processing, comparable to that of financial systems of global importance.
  • It is used for scientific research and by influential business partners. Algorand partners with trusted leaders who work in world-class companies.
  • It creates a decentralized economy. Decentralization is of great importance to business and all consumers of goods and services. With the economy becoming more digital, fluid and transparent, companies must leverage technologies that bring decentralization in order not to lose their strategic importance and strive to preserve their potential.

How can I buy Algorand (ALGO)?

The ALGO token is available for purchase and exchange on a wide variety of cryptocurrency exchanges, including platforms such as Coinbase , Binance, CoinMerce , as well as the popular decentralized exchange Uniswap .

Despite the fact that it is for sale on many exchanges, it is not always wise to buy this on any arbitrary exchange. We recommend using Binance or Bitvavo . Why? Because these two crypto exchanges have high liquidity, which allows you to buy and sell ALGO tokens at the best price. In addition, these two exchanges have already proven themselves in terms of security.

Of course it is also possible to buy ALGO on a decentralized crypto exchange , such as Uniswap or Sushiswap . However, this is not always wise. You have to go through many more steps when you use a DEX. This means that the chance of things going wrong is many times greater. So it is safer to opt for a centralized crypto exchange.

The price of the ALGO token

When you consider investing in ALGO, it is good to keep an eye on the price. This way you can determine when the best time has come to buy and sell the tokens. After all, you probably want to make as much profit as possible with your investment.

At the time of writing (August 2021), ALGO tokens are worth an average of $0.089.

On the basis of the price you could perform a technical analysis . This way you can determine for yourself when the best time to buy (or sell) ALGO has arrived. After all, it is important to always do your own research into a crypto coin.

Is it smart to buy Algorand (ALGO)?

Let’s see if Algorand can be a profitable investment. To talk about this, there are a number of points that must be taken into account.

First of all, you will have to look at how much you want to invest. This also determines the profit you could get with your investment. It is possible to invest in the token of Algorand from a few tens.

The profitability of Algorand strongly depends on the type of investment you make, the exchange you use and at what price you buy the token. When you buy ALGO tokens for a cheap price, and sell them for a higher price, you can make nice profits with the investment you make in Algorand. For example, many people have already made a lot of money on this project.

However, there are also situations where the outcome may be different. If you take a position when the opening price is lower than the closing price for example. You then end up with a negative profit, meaning you owe money.

Fortunately, the chance of this happening with Algorand’s applications is very small, because the site offers you the most modern analysis tools. This allows you to determine for yourself when it is a good time to enter and exit the token.

It is important to know that Algorand cannot be compared with a coin like Dogecoin . It is a very serious project that has a long-term vision. The team consists of people who know a lot about what they do. They have already made incredible achievements when it comes to the world of blockchain. There are already a lot of people who have been using the Algorand application for a long time.

Plus, it’s amazing how many applications are built on Algorand. These are innovative and powerful. And don’t forget that a blockchain that arouses interest among developers is clearly a blockchain that can only be successful in the future.

That’s not just a statement. It is a statement based on facts. Because the ecosystem continues to grow, which reassures us and shows us that Algorand may one day have the success it clearly deserves.

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