Algorand

• Algorand (ALGO)

• : Native token of the Algorand blockchain.

• Uses for the coin

• : Transaction fees, utility tokens for applications, participating in consensus mechanisms.

• Fixed Supply

• : 10 billion ALGO tokens.

• Distribution

• : Rewards for network participation, allocations for Algorand Foundation, Algorand Inc., and the community.

• Purpose

• : Incentivize participation to support network security and stability.

As of today 26 December 2024, the price of Algorand is ₹33.45 INR, with a 24-hour trading volume of 191540080.11 USD. The market capitalization for Algorand is 2946010003.09USD. The circulating supply is 8334756219.89 Algorand, with the total supply also being 10000000000 Algorand.

Pros:

• High Throughput: Algorand can process over 1,000 transactions per second, offering significant advantages in terms of speed and efficiency

• Low Transaction Fees: The network maintains minimal transaction fees, with the minimum fee for transactions set at just 0.001 ALGO, making it cost-effective for users

• Decentralization and Security: Utilizes a Pure Proof-of-Stake (PPoS) consensus mechanism, aiming for a high degree of security and decentralization

• Environmental Sustainability: Algorand is noted for its energy efficiency and carbon-neutral network, aligning with growing concerns about the environmental impact of blockchain technologies

• Quick Confirmations: Block times on Algorand are under 4 seconds, ensuring speedy transaction confirmations

• Limited Supply: With a maximum supply of 10 billion tokens, Algo rand's tokenomics could potentially make it a store of value

Cons:

• Centralization Concerns: Criticized for centralization due to permission relay nodes, which could impact its decentralized nature

• Poor Token Distribution: The initial distribution of ALGO tokens was heavily skewed towards the team and insiders, raising concerns about fairness and decentralization

• Low Adoption: Despite its technological capabilities, Algorand has struggled with adoption and building a strong community of early adopters

• Liquidity Issues: ALGO is not as liquid as some other cryptocurrencies, which can affect trading in large quantities

• Complexity for Users and Developers: The advanced technological features of Algorand can present a steep learning curve, potentially hindering mass adoption

• Governance Flaws: There are concerns that centralized exchanges may have disproportionate governing power in Algo rand's governance system, affecting its decentralization

• Reasons include

• rapid technological advancements, strong team, potential for widespread adoption, eco-friendly approach and high-performance capabilities.

• ALGO boasts of high scalability, instant transaction finality, no forking, and energy-efficient proof-of-stake consensus.

• Objective

• : Solve the blockchain trilemma - secure, decentralized, and scalable. While addressing high fees, slow transactions and environmental concerns.

• Founder

• : Silvio Micali is an MIT professor and Turing Award recipient.

• Dutch Auction Model

• : Starting price $10.00 USD, reserve price $0.10 USD.

• Private Sale Token Price

• : $0.10.

• ICO Token Sale

• : Raised over $60 million, $2.40 per token.

• ICO Price

• : 1 ALGO = $0.6 USD.

• Total Raised in Funding Rounds

• : $69M over four rounds.

• Latest Funding Round

• : Series B for $3M on January 23, 2022.

• Previous Rounds

• : Series A: $62M, Seed VC: $4M.

• Risks

• : Market volatility, regulatory changes, technological challenges, and competition.

The Algorand whitepaper introduces a public ledger that is based on a pure proof-of-stake (PPoS) consensus mechanism, which is designed to be more efficient than proof-of-work (PoW) systems. The key innovation of Algorand is its Byzantine Agreement (BA) protocol, which allows the system to reach a consensus without the risk of forks, ensuring that once a transaction is confirmed, it is final.

Algorand’s consensus mechanism randomly selects a small number of ALGO holders to propose blocks and vote on proposals. This selection is done in a way that is provably secure, unpredictable, and secret until the very moment of action, using Verifiable Random Functions (VRFs). The protocol ensures that the network can achieve consensus even if a fraction of the users are malicious.

The whitepaper also outlines how Algorand scales to handle a large number of users while maintaining low latency and high throughput. It achieves this through a combination of cryptographic sortition, VRFs, and committee selection to ensure that the consensus protocol can run efficiently and securely with minimal computational resources.

Algorand’s PPoS approach also addresses the issue of centralization of power, which is a common concern in PoW and other PoS systems. In Algorand, the influence of users is proportional to their stake, and the system is designed to function effectively even with millions of users.

The whitepaper discusses the safety and liveness properties of the Algorand network. Safety ensures that users cannot have divergent views of confirmed transactions, while liveness guarantees that the network will continue to process transactions even in the face of network partitions or malicious attacks.

Algorand also introduces the concept of Algorand Standard Assets (ASAs), which allows for the tokenization of any type of asset on the blockchain. This feature enables the creation of fungible and non-fungible tokens without the need for complex smart contract code.