What Is Algorand (ALGO)? Price, History & Where To Buy

Alogrand (ALGO) is an innovative novel blockchain that positions itself as an ideal payment processing blockchain. Similar to how Visa and Mastercard serve to process a multitude of transactions – Algorand serves to provide the blockchain equivalent.

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Its native utility token, ALGO, is used to pay for transactions and the Algorand blockchain provides a fast, efficient, and seamless process.

It’s recently gained a significant amount of attention in the crypto space and is currently the 31st largest cryptocurrency by market capitalization.

How Algorand (ALGO) Works

Algorand primes itself as a secure and stable blockchain that is catered to process payments affordably and efficiently. It utilizes a pure proof-of-stake consensus algorithm – which makes the blockchain more decentralized and energy-efficient.

Additionally, Algorand primes itself as a green blockchain. Impressively, it has been a carbon-negative blockchain since 2021. Essentially, it purchases more carbon credits than it emits in carbon.

Transaction finality is determined by random nodes being selected randomly to execute the validation of transactions. The Algorand network is similar to Ethereum because its blockchain caters to developers looking to deploy blockchain-based applications such as decentralized applications (DApps).

The Algorand foundation envisions creating a blockchain that, through its decentralized governance and innovative tokenomics, will serve as a sustainable and convenient platform for developers and processing transactions quickly.

Its unique consensus mechanism makes the Algorand platform attractive to both developers and users alike. Much like ETH powers the Ethereum network – ALGO, Algorand’s native cryptocurrency, powers the Algorand network.

The Algorand protocol maintains its integrity and security through decentralized governance and random recruitment of nodes. The Algorand whitepaper gives a detailed overview of the project and users are encouraged to thoroughly read through it.

What Is Algorand (ALGO) Used For?

A portion of ALGO holders, are staking ALGO to help provide security and seamless efficiency in the network. The stakers, who are recruited as random validators for transactions, agree not to sell their ALGO cryptocurrency. In return, they receive ALGO rewards according to how big their stake is and other factors.

The Algorand ecosystem is home to the blockchain decentralized finance applications and other DApps which are used by individuals engaging in the ecosystem. Every engagement in the ecosystem requires the use of ALGO to process transactions.

Additionally, the ALGO coin is frequently traded on multiple markets across cryptocurrency exchanges – its volatility makes it seem attractive to arbitrage traders and swing traders alike.

Once users become participation nodes, the block proposal phase executes the verifiable random function (VRF) that is uniquely incorporated in the Algorand consensus mechanism (pure proof of stake). This is a unique value proponent that has garnered Algorand significant support in the crypto space.

ALGO coin holders can also choose to utilize staking features available on multiple centralized exchanges, where they’re rewarded for locking up their ALGO for a certain duration. Much like how banks reward users who put their fiat currency in a savings or fixed deposit account for a duration of time.

Where To Buy Algorand (ALGO)

Algorand (ALGO) has recently risen in popularity and its trading volumes on exchanges have seen a sudden surge in the past few months. It has quickly grown to become a well-known cryptocurrency.

ALGO tokens are commonly available and frequently traded on most centralized crypto exchanges. Before you’re able to purchase ALGO, you’ll need to deposit fiat money onto an exchange, and sequentially ALGO tokens will be credited to your ALGO digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store ALGO tokens.

1. Binance (US Customers use Binance.US)
2. Gate.io
3. Coinbase
4. KuCoin
5. Bitfinex

Algorand (ALGO) FAQs

How long has Algorand (ALGO) existed?

Algorand was initially released in April 2019. It was founded by Silvio Micali, who is an MIT professor and Turing award-winner.

Since its launch, the ALGO cryptocurrency has seen significant price appreciation – at the time of writing this article, Algorand’s ecosystem has also accrued a TVL (total value-locked) of $172 million.

Are there any controversies about Algorand (ALGO)?

Before making any kind of cryptocurrency investment, it’s important to do your research about the company. Especially since it is such a rapidly expanding area.

Here are two of the top controversies surrounding Algorand (ALGO):

• Not completely decentralized – One of the most important considerations to make when looking into Algorand is understanding how the relay nodes are controlled. This is essential because it highlights that the process is much more centralized than decentralized.

  Nodes are individually picked and many have labeled this process as minimally random but rather exclusively selected by the ALGO team. To many blockchain purists, this goes against the decentralized ethos crypto projects are supposed to uphold. Simply put, validation of every proposed block is curated more intimately by the team, than by decentralized governance.

• Low level of adoption – Algorand is still a relatively new blockchain and cryptocurrency, this is evident when looking at the project’s level of adoption in comparison to other blockchains.

  Most notably, the total value locked (TVL) in ALGO is only $172 million compared to a +$100 billion TVL in Ethereum. However, this isn’t an insight into the future of Algorand, as by adding value proponents, it can quickly garner more user adoption and greater TVL.

How many Algorand (ALGO) tokens are there?

At the time of writing, ALGO has a circulating supply of 6,71 billion tokens (67% of the total supply).

The total supply of Algorand (ALGO) is 10,000,000,000.

Can ALGO be mined?

Algorand (ALGO) is not a mineable cryptocurrency. ALGO unlike Ethereum can’t be mined as it uses a proof-of-stake consensus algorithm.

However, many individuals earn yields from using their ALGO tokens to participate in DeFi applications where they can earn rewards from staking or providing liquidity.

Some centralized exchanges also offer staking rewards for ALGO holders that lock up their tokens for a certain duration.

What is the market cap of Algorand (ALGO)?

The market cap of Algorand (ALGO) is calculated by multiplying the total amount of coins in circulation by the current market price of ALGO.

Therefore, Algorand (ALGO) Market Cap = 6,710,000,000 ALGO x $0,73 = $4,89 billion (31st largest market cap).

Algorand is a very recently launched blockchain, which is why it hasn’t yet accomplished the same market cap like some of the larger blockchains.

It is however currently one of the top 50 cryptocurrencies by market capitalization and continues to grow in popularity as the project attracts more investment and users.

The market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Algorand (ALGO)

Algorand positions itself as a blockchain that can provide efficient payment processing with nominal transaction fees while maintaining high network security. It also primes itself as an appealing blockchain for developers of blockchain-based applications because of its affordable and fast network, and smart contract functionality.

Many consider Ethereum and Algorand to be competitors, seeking to provide a scalable and sustainable solution to the current dilemmas. However, Algorand inc, was founded more than 5 years after the Ethereum foundation.

The headstart that Ethereum has over Algorand is highlighted in the market cap and TVL differences between the two blockchains.

Algorand does continue to grow in dominance and user adoption, and with valuable projects being added to the Algorand ecosystem, it is likely to experience more growth going forward. Many blockchain enthusiasts believe that in a few years, Algorand could be a big player in the crypto space.

What Are The Future Plans For Algorand Blockchain, Algorand Network, And ALGO Token?

Algorand has announced its intention to continue adding valuable projects to its ecosystem, bolstering real-world utility and growing user adoption.

The blockchain has attracted multiple blockchain-based application developers and the ALGO cryptocurrency has been listed on multiple exchanges, giving users more exposure to the project.

The future is likely to involve significant growth of the Algo ecosystem, with projects branching into sectors such as NFT marketplaces, metaverse projects, and blockchain gaming.

Pros And Cons Of Algorand And ALGO Token

Pros:

• High throughput of transactions – Current upgrades being made to the Algorand blockchain are going to mean that Algorand will be capable of processing up to 46,000 transactions per second. These improvements will position Algorand to cater to payment processing needs.
• Cheaper than ETH – The transaction costs of Algorand are a lot cheaper than Ethereum’s gas fees. The cheaper fees make it a much more appealing blockchain to many potential users, as well as existing Ethereum users.

Cons:

• Its competitors are already giants in the crypto space – Algorand has only recently joined the crypto space, and compared to projects like Ethereum, it is still relatively tiny and has an underdeveloped ecosystem.

  Having only joined in 2019, Algorand faces stiff competition from multiple blockchains. The team is going to have to work incredibly hard to position the project among the top competitors in the space.

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