This Algorand review has revealed that Algorand was launched in 2019, Algorand is a newly listed altcoin that shows a substantial amount of potential in the crypto market. ALGO tries to address three large issues that plague the crypto space namely decentralization, security, and scalability.
Choose your quick section of our Algorand review below.
A Quick Overview of our Algorand:
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What is Algorand?
Launched in 2019, Algorand is a newly listed altcoin that shows a substantial amount of potential in the crypto market. ALGO tries to address three large issues that plague the crypto space namely decentralization, security, and scalability.
Key Features and Takeaways of Algorand
Algorand often refers to itself as the cryptocurrency which focuses on solving a variety of problems faced, namely the Blockchain Trilemma, namely the security, scalability, and decentralization issues face. Algorand has the following key features as well as takeaways:
- It was launched mid-2019 and makes use of a unique staking process that does not involve delegation. All that is needed is for the user to have some ALGO in their crypto address.
- There are several other cryptocurrencies that run on the Algorand blockchain known as Algorand Standard Assets, or ASA.
- Algorand along with ASA can be managed through Ledger Live, which allows for the claiming of various rewards.
- Algorand supports the concept of “democratic” user participation.
- Algorand uses a Proof-of-Stake and self-validation of the transaction as opposed to a mining-based Proof-of-Work algorithm used by other cryptocurrencies such as Bitcoin.
- Algorand aims towards the economic innovation thereof through the creation of a blockchain that offers authentic value to efforts that build an economy that does not have borders.
- Algorand is promoted as an open-door platform that can be joined by anyone without having to receive prior approval by officially appointed gatekeeper authorities.
- Users are not required to be in possession of keys to spend their stakes and receive consensus. Users are required to create and register participation keys.
- Algorand makes use of Verifiable Random Function (VRF) which supports the self-selection process according to which users can secretly determine their participation in a consensus protocol round.
Overall Rating
4.3/5
Rated #512 of
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Algorand Mining
Unlike other cryptocurrencies that are mined, such as Bitcoin, Algorand (ALGO) cannot be mined but involves the process of staking. It is the process involved with withholding funds in a crypto wallet to support the operations of the Algo blockchain and, in return, holders are rewarded for their contributions.
ALGO aims to solve the Blockchain Trilemma faced with security, scalability, and decentralization. In the consensus method that is used by Algorand, the Proof-of-Stake (PoS), the network ties security to the honesty of the majority. Algorand makes it dishonestly impossible by a minority and cheating by the majority would therefore be foolish.
The protocol remains robust if two-thirds of the majority remain honest. It is possible for users to earn a passive income through Algorand by participating in the network. All addresses that contain at least 1 ALGO, or more, can receive rewards, with the annual yield being between 5 – 6%.
The benefits involved in staking ALGO are as follows:
- Simplicity as there is no action required to start staking. All you need is a minimum balance of 1 ALGO in your wallet.
- The rewards are easy to claim and once claimed, they are added to your global balance.
- There is a low risk involved with forking as result of the unique consensus method.
- The Algorand network is well-known for its speed in executing and verifying transactions.
When staking with Algorand, it is important to note that there are two types of nodes supported by the platform namely relay and participation. The relay nodes do not participate in voting or decision-making. Instead, they facilitate communication between the participation nodes, and they are also known to be more hardware-intensive than the participation nodes.
Other considerations with staking ALGO involve risks and factors that can affect staking rewards are as follows:
- Locking periods – when staking tokens, they are set to a locked state. This means that tokens cannot be moved or traded.
- Liquidity and volatility – the market’s behavior is a large factor to consider as it cannot be controlled, and the market is prone to sudden, major fluctuations.
- Validator Status – these nodes have higher requirements for equipment operation as well as maintenance. Validators may become inactive or jailed if they do not meet the requirements.
- Validator Commissions – where PoS is concerned, there is still a hardware requirement to run nodes and several tokens that must be submitted to be considered a full-fledged validator. This means that there are operational costs that are being taken from the rewards that are gained by staking.
- Rewards duration – once you stake your assets, rewards may be credited instantly, or it could take a certain time before the rewards can be released.
Based on these considerations, it will depend on the individual user whether they are willing to take the risks in staking. It is always imperative to ensure that you understand the system, the limitations, requirements, and the risks involved.
Pros and Cons
| ✔️ Pros | ❌ Cons |
|---|---|
| Algorand was created by respected developers and is supported by a world-class team | Transaction fees may be low, but they are not the best in the industry |
| Substantial token supply of 10 billion | Transaction time is more than a second, which is a lot where digital cash applications are concerned. |
| Mainnet launched with an impressive 1,000 transactions that are executed per second | |
| There are strong partnerships involved | |
| Real-world demand for Algorand’s product offering | |
| Algorand has improved the blockchain landscape through various technological developments | |
| The incredible speed of development and minimal bugs and errors | |
| Well-documented code base | |
| Algorand is technically and commercially positioned for success | |
Transaction Fees
| 💰 Type of Fee | ℹ️ Information |
|---|---|
| Borrowing Fees | 0.01% |
| Flash Loan Rate | 0.09% |
Should you buy Algorand?
When investing in cryptocurrency, there are many factors to consider, starting from the inception or launch of crypto and the development team behind it. Algorand was developed by a respected cryptography professional from MIT.
In addition to this, Algorand has the support of a world-class team of research scientists, business, and marketing professionals. However, it means that there are high expectations from the project and thus far, it has managed to exceed all expectations.
Algorand falls into the top 100 cryptocurrencies in the world, with some intense interest shown in the project across the crypto community. Even though it was conceived in 2017 and launched in 2019, Algorand has gained a significant amount of positive reputation.
In addition to its solid creation, development, and progress, Algorand also has a host of world-class investors that back the project namely Pillar and Union Square Ventures. In 2018, Algorand raised more than 887 million ZAR from global investment groups.
Apart from this, Algorand is also showing a lot of potential on the market and has a lot of plans for further development planned. The rewards that can be gained from staking ALGO also ensure that there is increasing interest in cryptocurrency.
How to buy Algorand (ALGO)
Step 1 – Open an account on Binance
Navigate to the official Binance website and select “Register Now”. You will be redirected to a “Create a Free Account” where you can either register with your email address or your mobile number.
You can enter your email address and user-selected password or select the “Mobile” option at the top of the form. Select your country code and enter your mobile number along with your user-selected password.
Once you have completed the necessary fields, you can read and accept the Terms of Service before selecting “Create an Account”.
You may have to complete a Security Verification that will confirm that you are not a robot. Next, there is an account verification. During this, a 6-digit verification code is sent to the email address or mobile number that you provided. The code is only valid for 30 minutes and must be entered in the blocks provided on this page.
Once the verification is completed, a welcome page will load, and you will be given the options through which you can either trade or purchase cryptocurrency. If you are new to crypto, you can visit the “Learn More” Section at the bottom of the page.
Step 2 – Secure account with two-factor verification
On the trader’s dashboard, select the option to secure your account with two-factor verification. Even though phone verification is a secure option, the most preferred and secured method is to make use of the Google Authenticator.
Once downloaded and installed, either scan the QR code or type in the one-time, unique code provided to add your Binance account credentials onto Google Authenticator.
Once completed, write down the backup key provided to recover your account on Google Authenticator in case you lose or misplace it. In the final step, enter the 6-digit code which you will receive on your registered email address along with the Google verification code.
Step 3 – Deposit funds
Binance allows for the purchase of cryptocurrencies via fiat deposits as well as cryptos. Deposits can be accessed from the following locations:
- The “Welcome to Binance” banner.
- Hovering over “Buy Crypto” at the top of the web page and selecting your preferred method.
- Select “Deposit” on the “balance details” section on your trader’s dashboard.
Once you have selected the option to “Deposit”, you can select whether you wish to deposit cryptocurrencies from another wallet, or whether you want to make a fiat deposit.
For Crypto deposits, follow these steps:
- Select your coin between Bitcoin, Ethereum, TetherUS, BNB, or EOS.
- Select the network to be used between BEP2, BEP20 (BSC), ERC20, or TRC20 and accept the conditions for using the network.
- Copy the address or scan the address QR code from the wallet where you are depositing and follow further prompts. Kindly note that each network has its own set of network confirmations between 1 up to 15 confirmations before the deposit will be done.
For deposits in Fiat currencies, follow these steps:
- Select the deposit currency from the dropdown list. To gain access to more currencies, it is necessary to verify your identity and face.
- Select the payment method to be used, depending on the currency chosen.
- Enter the deposit amount and any other details. Kindly note that the transaction fee will be displayed along with the balance after this is subtracted.
- Continue with the deposit.
Step 4 – Start Trading
Once you have completed your deposit, you can navigate to the “Markets” section at the top of the page to view the available cryptocurrencies. From here, you can buy, sell, and trade currencies at competitive prices.
Frequently Asked Questions
When was Algorand first launched?
Algorand was founded in 2017 and launched in 2019.
Who founded Algorand?
MIT professor and Turning-award-winner, Silvio Micali.
What is “ICO”?
It is an Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.
When was Algorand’s ICO and how much did it raise?
In June 2019, Algorand held a Dutch ICO in which more than 858 million ZAR was raised by selling 25 million tokens, each at 34.34 ZAR each. The date of the ICO also coincided with the launch of the Algorand manner.
In addition to this, Algorand has claimed that 600 million tokens will be auctioned off every year until the full 10 billion ALGO supply has been released.
Is Algorand legit?
Yes, Algorand is a legit project that aims to solve the Blockchain Trilemma. In addition, Algorand is a promising project that shows that it is technically sound.
What is Algorand’s total supply?
There is a total supply of 10 billion ALGO, with plans to auction 600 million ALGO tokens per year until the entire supply has been released.
What is the purpose of Algorand?
Algorand works to address the Blockchain Trilemma concerned with security, scalability, and decentralization.
On which blockchain is Algorand based?
Algorand is based upon its own blockchain.
Does Algorand work with smart contracts?
Yes, Algorand has a two-tier smart contract architecture based on everyday needs and everyday transactions through a Layer-1, and Layer-2, or off-chain contracts, which offer additional customisability.
Does Algorand have potential to become more valuable?
Yes, as a result of its structure and developments that are planned, Algorand is set to become more valuable in the long-term.
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