This altcoin was designed to be an inflationary cryptocurrency. It has a hard supply cap of 10 billion coins, and 3 billion of these are set to be released in the first five years of the existence of the coin. While the Algorand Foundation holds a large number of the cryptocurrency, the democratized reward system is set to lower centralization in the long term.
Briefly about Algorand
This cryptocurrency was created in 2019 by Silvio Micali, an MIT professor and Turing award-winning computer scientist. He created the cryptocurrency to work as a payment system, just like Bitcoin and other cryptocurrencies. However, it differs from traditional cryptocurrencies because of the scalable nature of the blockchain. With the altcoin, transactions are processed nearly instantly. It also handles more than 1000 transactions every second. This level of scalability is the reason behind the 'Ethereum-killer' title.
Algorand, the native token of the blockchain with the same name, reward users and secure the platform.CryptoLists.com
This coin is the centre of a major blockchain and is used to validate transactions on the network. That means the success of the cryptocurrency is directly tied to the success of the blockchain. Since the network is able to solve the blockchain trilemma, it has been noted to be ideal for central bank digital currencies (CBDC). More than 16 CBDC projects are being built on the blockchain, including the national currency of the Republic of the Marshall Islands. With mass adoption, the cryptocurrency is highly likely to shoot up in price over the next few years.
Utility of Algorand?
The main purpose of this altcoin is to handle day-to-day financial transactions on the internet. It offers quick transactions and is fairly cheap to use for payments. Also, it is used to secure the Algorand blockchain and rewards the operators of the network. Since the network uses a proof of stake system, the validators of the transactions have to be rewarded with ALGO coins. You should note that the cryptocurrency is not just used to validate transactions made using ALGO coins; any transaction made using tokens on the Algorand blockchain will require validation using these coins. Unlike other blockchains, this one does not require holders of the altcoin to actively stake their cryptocurrencies in order to earn rewards. Instead, you should hold the altcoins in a non-custodial wallet or on a crypto exchange. This way, you will earn an annual percentage yield (APY) of 7.5% for participating in the validation process.
Algorand Price details
›› ALGO tokenomics and social media
Advantages at Algorand+ Algorands transfer fees are very low.
+ Holders of Algorand can earn interest on their coins.
+ It is backed by a respected figure in computer science.
+ Algorands blockchain solves the blockchain trilemma.
Disadvantages- The Algorand Foundation holds a large number of the ALGO coins.
- It is still very new and hasn’t been fully tested.
- There isn’t much liquidity for the cryptocurrency on exchanges.
- Algorand has to compete with more established cryptocurrencies.
Costs▪ Rated at 10/10
The Algorand blockchain does not have a concept of gas fees, but the minimum fee required to send the altcoin is 0.001 ALGOs or 1,000 microALGOs. The transfer costs will vary depending on the size of the payment, and you can also choose to pay extra for your transaction to be prioritized. Most people choose to pay extra when the network traffic is high and blocks are full. In normal situations, the transactions will be processed almost instantly, so there is no need to pay extra costs for the transfers.
Reputation and Buzz▪ Reputation rated at 9/10
▪ Buzz rated at 8/10
The man behind this cryptocurrency is Silvio Micali, an MIT professor who is highly respected in the computer science world. This altcoin has been marketed thoroughly and is now considered one of the fastest-growing cryptocurrencies. The official Twitter page of the cryptocurrency has more than 240,000 followers, and people generally seem to find the project useful. One of the key complaints people have about the project is that it is currently highly centralized, with the Algorand Foundation holding a large percentage of the available coins.
Can I mine ALGO?
No, this cryptocurrency was not developed to be mined. Instead of mining, the blockchain is operated by validators, and they earn interest on their crypto holdings.
How can I get this cryptocurrency?
If you want to purchase ALGO, you should create an account on major crypto exchanges such as Kraken and Coinbase. You can then make a cash deposit and initiate a buy order for the altcoin. In some cases, you will be required to first purchase Bitcoin or other major cryptocurrencies, and these will be converted to ALGO.
Is ALGO a scam?
No, this is a legitimate cryptocurrency that was developed by one of the most brilliant men in the world of computer science. It is also listed in some of the top crypto exchanges.
Is there a limit to the number of ALGO coins that will ever exist?
Yes, the maximum number of Algorand coins that will ever exist is 10 billion. In the first five years of the existence of cryptocurrency, the first 3 billion coins will be minted.
How fast are ALGO transactions processed?
Transactions made with this cryptocurrency are processed within 5 seconds, and this is quite fast compared to coins like Bitcoin. However, in some cases, there may be very many transactions being processed, and this can slow down the network a little.