Algorand (ALGO)
Algorand is a blockchain protocol founded by MIT professor Silvio Micali in 2017. It allows for the creation of applications and the transfer of value on a decentralized, permissionless network. The protocol employs a Pure Proof-of-Stake (PPoS) consensus mechanism to address security, scalability, and decentralization challenges. The Algorand blockchain operates with a decentralized Byzantine agreement protocol that can tolerate malicious users, as long as honest users control more than two-thirds of the network's stake. The protocol is built around transactions, blocks, and consensus, with transactions being the fundamental units used to transfer value.
Protocol structure
| Ticker | ALGO |
| Category | Cryptocurrency |
| Website | https://algorand.foundation/ |
| @algorand | |
| Telegram | algorand |
| https://www.reddit.com/r/AlgorandOfficial/ |
Algorand's architecture is divided into two layers. Layer 1 focuses on asset creation and management, including Algorand Standard Assets (ASAs) and simple smart contracts known as Algorand Smart Contracts (ASC1s). Layer 2 handles more complex smart contracts and decentralized applications (dApps), ensuring efficient processing on Layer 1.
Pure proof-of-stake
PPoS enables validation through randomly selected Algorand (ALGO) holders who have staked their tokens. This method is energy-efficient and incentivizes holders to act in the network's best interest. Algorand does not require a minimum stake, allowing wider participation in block validation.
Core protocol
Participation in Algorand requires users to generate a participation key. Validators are selected via a Verifiable Random Function (VRF), ensuring secrecy in the selection process. Consensus is reached through a committee of voters who approve proposed blocks.
Consensus steps
In Algorand's consensus process, accounts propose blocks, and nodes verify them through the VRF. This is followed by a "soft vote" to filter proposals and choose the block with the lowest VRFCertify value. Finally, a new committee certifies the block, adding it to the blockchain.
State proofs and use cases
In September 2022, Algorand introduced State Proofs, enhancing cross-chain communication and increasing transaction capacity. These features position Algorand as a prominent Layer-1 blockchain for Web3 applications. Algorand is also used in Italy for bank and insurance guarantee platforms as part of the country's economic recovery efforts.
ALGO cryptocurrency
Tokenomics
ALGO is the native cryptocurrency of the Algorand blockchain, launched in June 2019. At inception, 10 billion ALGO tokens were created, distributed for community incentives and ecosystem support. The Algorand Foundation manages a portion of the supply to foster network growth.
Sustainability of Algorand
Algorand prioritizes sustainability, claiming to be a highly efficient blockchain. Its design, coupled with partnerships with organizations like ClimateTrade, aims to minimize environmental impact while promoting green technology.
Algorand Foundation
The Algorand Foundation, a non-profit organization, supports the blockchain's development and adoption. It engages in educational programs, accelerators, and events to drive Algorand's growth and adoption. The foundation's board includes Kieron Guilfoyle, Pino Persiano, and Staci Warden, with projects like Folks Finance and Algofi among its initiatives.
Team behind Algorand
Algorand's team comprises experts across various fields, led by founder Silvio Micali. Key members include W. Sean Ford (Interim CEO), Paul Riegle (CPO), and Jing Chen (Chief Scientist), among others.
Decipher Conference
Decipher Conference is an annual event organized by Algorand to explore the protocol's future. Participants engage in discussions and networking to advance the ecosystem. Decipher 2024 is scheduled for Barcelona.
Decipher 2021
The inaugural Decipher Conference in Miami featured speakers like Michael Arrington and Meltem Demiors and hosted the INNOVATE Global Hackathon.
Decipher 2022
Held in Dubai, Decipher 2022 saw over 2,000 attendees, with announcements like Algorand Ventures and the Kokua disaster relief platform. The conference highlighted Algorand's ongoing developments and initiatives.
2024 roadmap for Algorand
The Sicilian Defense: Dynamic round times
Algorand's upgrade aims to achieve average block times of under three seconds, enhancing network efficiency and user experience. This was implemented in January 2024.
The Ruy Lopez: AlgoKit 2.0
AlgoKit 2.0 provides tools for building on Algorand, with planned upgrades to support user experimentation and secure coding practices.
The Queen's Gambit: Non-archival relays
Transitioning to non-archival relays will improve network efficiency and reduce operational costs, contributing to a more streamlined ecosystem.
The Réti: Consensus incentivization
Algorand plans to incentivize participation by rewarding block producers, aiming to enhance network security and decentralization.
The Capablanca Variation: P2P gossip network
Algorand is shifting to a peer-to-peer gossip network, reducing reliance on relay nodes and promoting decentralization akin to Bitcoin's structure.