Algorand is a decentralized blockchain network platform intended to solve the dilemma of implementing speed, security and decentralization of blockchain triangle. Launched in June 2019 by computer scientist Silvio Micali, a professor at THE Massachusetts Institute of Technology, Algorand is a permissionless open source blockchain network that anyone can build on. Algorand is committed to being a payment-centric network with Fast transactions and a strong focus on achieving near-instant Finality. Algorand is able to process over 1,000 transactions per second (TPS) and finalize transactions in less than five seconds.
Algorand proof of use (PoS) Consensus mechanism and distributes verifier rewards to all holders of its native ALGO cryptocurrency. With strong throughput capabilities and fair community incentives, Algorand is able to manage high throughput requirements for widespread use and a wide variety of use cases worldwide.
As a public smart contract Staking depends on Staking, Algorand is currently able to host decentralized application (dApp) development and provide scalability. Rising gas costs on Ethereum led many dApp developers and decentralized finance (DeFi) traders to look for alternative blockchain solutions, Some are turning to Algorand as an ethereum alternative to dApp development and DeFi apps.
Algorand also allows developers to use Algorand standard assets (ASA) protocol to create new tokens or transfer existing tokens to the Algorand ecosystem. Stablecoins like USDT and USDC, for example, also exist as ASA on the Algorand blockchain, enjoying higher throughput and lower transaction fees compared to typical transactions on Ethereum. In addition, as the Central Bank continues to study the network to host its central Bank digital currency (CBDC), Algorand has emerged as a viable option and has been selected to host the Marshall Islands CBDC.
ALGO is the native Algorand cryptocurrency, Is the cornerstone of its network structure. As part of Algorand's unique protocol design, rewards paid to the verifier's production blocks are distributed and distributed among all ALGO token holders, rather than just to the block producers. That means that as of February 2021, All ALGO token holders can get an annual return of about 7.5% (APY). Rewards are distributed approximately every 10 minutes to encourage users to join the Algorand pledge platform and accelerate the path to decentralization.
Instead of actually "mortgaging" tokens during block production and validation, users can simply save ALGO in an unmanaged wallet or exchange for the rewards they earn. In this sense, Algorand has achieved near-automation, as pledgers can passively hold ALGO while supporting the network.