Algorand: Solving Problems That Matter

Algorand is the most decentralized, scalable, and secure blockchain infrastructure on the planet. Our sustainable blockchain is powering the economic models of the future, from decentralized banking to generative NFT art (and everything in between).

What is algorand solving?

The goal of Algorand is to resolve the "blockchain trilemma," which states that every blockchain system may only have two of three desirable properties: decentralization, scalability, and security. A system with all three could run on nodes with only moderate consumer-grade resources (i.e., it wouldn't need a datacenter or a large cluster of virtual machines), have transaction processing that scales with the total network resources (rather than the resources available per-node), and couldn't be subverted by attackers with a large share of the network's total resources.

Every user-initiated transaction on a cryptocurrency's network is approved or disapproved by a consensus process. Bitcoin and Ethereum, for example, use a PoW (proof of work) technique that demands a lot of computer power and so uses a lot of electricity. There is a less power-intensive consensus process known as PoS (proof of stake).

Although Ethereum is attempting to transition to a more energy-efficient PoS mechanism, which is not yet fully operational, Algorand and other alternative crypto coins such as Polkadot and Solana have been dubbed "Ethereum killers" because they are more cost-effective and energy-efficient than Ethereum.

Algorand relies solely on the PoS technique. "Algorand's pure PoS technology picks committees from participating ALGO holders at random to validate and approve the next block in the chain. "This randomization is the outcome of a one-of-a-kind cryptographic tool called the VRF (Verifiable Random Function) created by Algorand's originator, which aims to solve the blockchain trilemma," explains Gaurav Dahake, CEO and co-founder of Bitbns.

Algorand has been chosen as a strategic partner to provide network and technical ecosystem infrastructure for Hivemind Capital Partners' $1.5 billion fund. This was a huge step forward for Algorand, which is working to expand the applications of its native coin ALGO.

Algorand has also created Algofi, a crypto decentralized ecosystem software protocol that includes two primary functionality services: Tinyman, an Algorand-based decentralized exchange (DEX), and Algomint, a digital assets minter that connects Algorand to other blockchain networks. Algofi will also begin mining AlgoStable, its own stable currency (STBL).

Key Resources & Readings:

Algorand | The Blockchain for FutureFi | Algorand

Algorand Foundation: Pure-Proof-of-Stake Protocol | Algorand ...

Algorand price today, ALGO to USD live, marketcap and chart › currencies › algorand

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