What is Algorand?
Algorand is a totally new blockchain, that is said to finally solve the problem of the so-called “blockchain trilemma” using it’s new Pure Proof-Of Stake consensus algorithm as well as become the first “carbon-negative” decentralised net, due to tree planting projects all over the world sponsorship 🌳
More about the algorithm ⚙️
What is Pure Proof-Of-Stake?
The new consensus algorithm is executed in three steps: Suggestion - a random leader wallet, that holds some $ALGO token suggests a block for inspection; A group of other randomly chosen wallets decide on what block is ready for verification 🕵️♀️; Another random group verifies the block and allows it to have access to the blockchain. The wallets are chosen using a custom VRF function that gives priority to wallets with the most $ALGO tokens staked.
Why not use regular Delegated Proof-of-Stake (DPoS)⁉️
Regular DPoS cuts the quantity of validators to several hundreds or less to increase the performance, decreasing decentralisation and security by doing that and increasing the probability of some validators getting too much control over the net.
Algorand is different 🤔
Using PPoS the net has low latency and a high throughput of 1000+ transactions per second and less than 4,5 seconds block time. That still doesn’t influence security and decentralisation because of how VRF changes the voting and verification groups the whole time. The blockchain is also very energy-efficient and has much lower fees, which don’t get higher than 0,001 ALGO (around $0,0003 by June 2022).
Is Algorand Ethereum compatible?
No, the blockchain is using it’s own Algorand Virtual Machine (AVM) 💻, that is not compatible with EVM and doesn’t support Solidity based smart-contracts. Algorand, however, uses its native TEAL language, but is also fully compatible with the world-leading Python, used in most nowadays non-decentralised applications.
How do Algorand tokenomics work?
$ALGO is the native Algorand coin 💵, that is responsible for staking, commission payment, launching retranslating nodes and internal governance. The coin is traded on world leading DEXs and is in the Top-50 coins in terms of market capitalization.
10B coins were divided between early investors, the team and non-commercial organisation “Algorand Foundation”. All the leftover locked tokens will be slowly distributed as grants, staking rewards and the rewards for node control and maintenance 🛠.
What services does the Algorand ecosystem provide?
Algorand are developing the most trending sectors such as:
- DeFi - Algofi, Yieldly, Folks Finance.
- P2E - Algorealm, Aegir Tactics, SK8, Alchemon, Cosmis Champs and others as well as the Algo Gaming Guild.
- NFT - Abris.io, AB2 Gallery, ZestBloom.
That is everything you need to know about the new and prospective Agroland blockchain, that has all the chances to lead the market with the other new Sui blockchain (Here is an article on that one). Stay tuned 📻