Overview of the Algorand project. Properties and characteristics of ALGO cryptocurrency.

2020-01-07 00:00:00:

The virtualization of the international market continues today. New electronic systems and digital currencies are emerging that attract investors and users to conduct various financial transactions. The Algorand cryptocurrency takes its place in this worldwide system.

About the Algorand project

This platform is a blockchain that seeks to create a dedicated transparent system. It enables users to achieve some success in decentralized projects or applications. The Foundation provides special assistance to young developers in launching programs. The main mission of the site is to create a seamless economy.

The crypto operates on a public blockchain with an open source algorithm. Ad hoc consensus contributes to the security, decentralization and performance of the entire system. It allows you to quickly conduct different transactions, compete with well-known payment platforms and scale to billions of nodes.

Algorand features

Algorand cryptocurrency differs from other blockchains in its high bandwidth. The use of a special PoS algorithm allows participants to receive bonuses for verifying financial transactions. Moreover, not everyone has the opportunity to get the validator status. The system has set too high requirements for candidates. But it is possible. The main thing is to go through a special procedure, which is prescribed by the authors of the project in the protocol. Today there are 2 options for implementing PoS:

A vote takes place, during which the weight of one vote depends entirely on the amount of funds in the users online wallet. After completing this procedure, the validator must confirm and verify the transactions.
The system blocks a certain amount of a potential candidate. It is a "deposit" that is charged in the form of a special penalty.
But these two methods have a certain disadvantage. This is too complex a procedure for the validator. It is the Algorand platform, together with PPoF, that tackles this difficult task. Each token holder can receive this status. Of course, everything is decided by the amount of money in the account. In this case, the probability of winning the vote increases. In this case, the validator does not need to make a deposit, and he can also leave the number of those who wish at any time. Why did the developers complicate everything? The answer is very simple. This ensures safety. Potential fraudsters are not able to guess or calculate the entire election process.

The system also offers its users excellent scalability with a high level of security at all levels. Algorand transactions are now independent of the number of participants. Consequently, the fees will be quite low when, for example, compared to the Bitcoin or Ethereum blockchains. Financial transfers are made in just a few seconds. This is the beauty of the sites decentralization. In the network itself, the authors have already built a special agreement that allows them to make further decisions about development.

The system has its own feature that distinguishes it from other platforms. Approaching a certain stage of development, developers publish their proposals for voting on the blockchain. If the majority supports the changes, they take effect immediately. In other similar systems, there is a certain split at this stage. Therefore, the team created the Vault algorithm to reduce the load on the nodes. Now the old information about transactions is no longer stored.

Therefore, the developer has created a universal system that not only functions autonomously, but also makes it possible to carry out any financial transfers as safely as possible. At the same time, users can be sure of complete confidentiality of all their transactions.

A little about the Vault algorithm. It was developed by the project team for blockchain compression. This technology allows:

Nodes do not store old transaction information. The operation is now valid for a certain amount of time.
Reduce the workload of nodes. Vault uses special sharding. Account information is located on several nodes. This does not require storing data about all users at once.
Detailed information on the technical features of the algorithm can be found in the White Paper, which is posted on the platforms official website.

How is Algorand created?

The first mention of the project appeared in the media in the winter of 2018. At this time, the creator of the Algorand cryptocurrency Silvio Micali and his team were able to get $ 4 million to create a blockchain protocol. This project was presented in Malta, which was based on work with the Proof-of-Stake protocol. The developers focused on solving the difficulties with distributed systems.

An ICO was organized in the summer of 2019. The Dutch auction mechanism was used. As a result, 25 million coins were sold at $ 2.40. Moreover, these auctions coincided with the official launch of the entire site, although the beta version began functioning only in April of this year. At this time, the platform was able to process approximately 1000 transactions in 5 seconds. Excellent throughput rate.

A little about the projects executive team, which is currently improving the blockchain. It is thanks to these developers that the system evokes a certain degree of confidence among investors:

Silvio Micali is a university professor, winner of several prestigious awards, Doctor of Science. He can be called the "father" of this unique project.
Steven Kokinos is the CEO of Algorand, in charge of strategy for the development of business ideas. Founder of several companies that are now successfully operating in the international market.
Sean Ford is the chief operating officer who is promoting the system to the market. His responsibilities include management, marketing policy and global community development. Also, this expert specializes in virtual trading, communication and brand building.
In addition to these developers, the team includes Pablo Azar, Nickolai Zeldovich, Naveed Ihsanullah, Sergey Gorbunov, Albert Wenger and other specialists. Their main task is related to the economic, technical, advertising and systemic development of the trading platform. Everyone has vast experience in the cryptocurrency industry.

The project cooperates with a number of companies. Among them stand out:

Fred Wilsons USV venture capital firm;
Jamie Goldsteins Pillar VC.
Also partners are CPC, Eterna, Brainchild, Mozaik, Lemniscap, MetaStable and other firms. But there are competitors who also use a voting system or similar decision-making principle. The authors of the project should closely monitor the activities of Monero (XMR), Litecoin (LTC), DASH, Dfinity. Especially the latest platform has similar functions. It is aimed at training a system that will be able to solve certain problems itself in the future.

Is Algorand Endless?

Today, you can buy tokens of this system on different exchanges, since the project is very interested not only by users, but also by large investors. Crypto Algorand is on sale on Binance, Bibox, Kucoin, Huobi. For example, on Binance, Algo is implemented in pairs with several digital currencies. To do this, you need to use a special form for creating orders. This system will help to carry out the procedure for the sale and purchase of cryptocurrency.

You can store tokens using a special application that is supported by the Android operating system. What are the other benefits of this program?

An account is created here in a couple of minutes.
Receiving or poisoning coins is instant.
The user has the ability to form requests to receive a crypt or respond to them.
Here you can view transaction histories.
Frequently used contracts are saved for quick access.
And thats not all the benefits of this app. Security remains a priority for developers. Therefore, the program does not collect personal information, and individual keys are located only on the mobile device.

Strengths of Algorand

Analysts treat this cryptocurrency differently. Someone sees in her a huge potential and development. Others are skeptical about the future of the entire project. But it has a number of advantages:

Scalability is infinite. The system selects a group of nodes for each block of transactions. They are completely hidden until the start of the confirmation procedure. Verifiers appear here randomly. Their numbers are not affected by the size of the network.
Transactions have no forks. In other blockchains, there is a competition of several nodes to close the blocks. In this case, there is even a problem with simultaneous operations. The result is forks. One block is moved to the blockchain and the other is discarded. Financial transactions that are conducted on this basis are not considered reliable. Therefore, Algorand has a well thought out consensus mechanism.
High level of security. The authors of the site guarantee that the network, protocol and user are not exposed to hacker attacks. All payment transfers are made using special protocols and keys.
There is no censorship here. This is due to decentralization and transactional neutrality. All decisions are made in agreement with the majority of users. At the same time, low commission fees attract new members. Their amount does not depend on the size of the network. Therefore, they always remain minimal. Thus, microtransactions or large payments are processed the same way.
The system is easy to evolve. What is meant? All new protocols are easily implemented on the blockchain. You dont even need a hard fork.
Although, like any cryptocurrency, this system has one significant drawback. Algos structure has a number of technical issues. They can lead to attacks by fraudsters who want to deliberately fork the platform. But the developers continue to work on eliminating this shortcoming.

Algorand in TOP currencies

According to coinmarketcap.com, the Algorand cryptocurrency is trading at almost $ 0.23 today with a market cap of around $ 111 million. This is not to say that the platform is at its peak. Some experts point out that a stellar team is not always focused on creating something new. Sometimes they just want to make money. An example is the EOS project, which was also called the "Ethereum killer". But other analysts are confident that this platform is successful and its future profit depends only on investors.

The projects reliability has already been ensured by a private token sale. Today, the creators continue to improve the functionality of the system. They need this to gain a foothold and growth in the global cryptocurrency market. Although it would be nice for the developers to create a coherent roadmap that could explain the further directions of the project.

Platforms like these try to artificially stimulate the behavior of their users. Algo differs from them in openness and honesty. Each participant has a great opportunity to independently decide the fate of their tokens. Developers continue to create simple protocols. They are similar to TCP or HTTP. In this case, the user is only interested in one aspect, so that the packets move normally over the network. We will continue to follow the latest news from the world of cryptocurrencies. We hope that in the future this digital system will be able to grow and get into the TOP 10 popular currencies on the international market.