What is Algorand (ALGO)?
Algorand is one of several more recent projects that seek to expand the possible use cases for cryptocurrency, accelerating the speed of transactions and reducing the time it takes for transactions to be considered final on your network.
Officially launched in 2019, Algorand seeks to achieve these attributes through decisions that diverge from how cryptocurrencies are traditionally designed.
Most notable is that Algorand distributes the ALGO cryptocurrency that it introduces into its economy at each new block to everyone who has a certain amount in their wallet.
Algorand also allows users to create smart contracts (programmatic agreements for building decentralized applications) and Tokens that can represent new and existing assets.
These funds were successful in attracting a diversity of venture capitalists to ALGO's first private sales conducted to fund the platform's development.
Who Created Algorand?
Created by computer scientist and Massachusetts Institute of Technology (MIT) professor Silvio Micali, Algorand is perhaps rare because it was started by an established academic who already had a distinguished career at the time of its launch.
Micali, for example, received the Turing Award 2012, a notable award in the world of computer science, for his work with his colleague Shafi Goldwasser.
According to the Association for Computing Machinery, which awards the honor annually, Micali is credited with helping make cryptography a “more accurate science” through work that formalized a basic understanding of some of the area's essential building blocks.
Micali would write the Algorand white paper with Stony Brook University professor Jing Chen in 2017. This pivotal work was developed by other academics and cryptographers in white papers available on the project's official website.
This work is funded by the Algorand Foundation, a Singapore-based company founded to promote the technology and which has received an ALGO token allocation for its efforts.
What is Algorand Used for?
The public version of the Algorand blockchain is primarily designed to allow other developers to create new types of cryptocurrency-powered applications.
The platform has been used in real estate, copyright, microfinance and more. A more detailed summary of the use cases can be found on the official website of the Algorand Foundation.
Algorand's code is open source and can be cloned, copied or otherwise used in private, or allowed blockchains.
Why Does Algorand Have Value?
Algorand is a new public blockchain, which means that its technology, while new, hasn't seen much testing in real-world market conditions.
Users may find the ALGO cryptocurrency valuable if they believe that Algrorand's technical specifics will likely make it the blockchain of choice for developers who want to design and release new types of decentralized applications.
Investors may also see Algorand as a viable part of a cryptocurrency portfolio if they believe that proof-of-stake blockchains, which lower the cost of participating in a blockchain operation, will ultimately prove more successful in the market.
The Algorand Foundation, the nonprofit organization that oversees and funds the protocol's development, says only 10 billion units of its ALGO cryptocurrency will be created.
Algorand maintains a block explorer, which keeps an official count of your current stock.
A schedule of distributions, which the foundation expects to complete within five years of launching the protocol, can be found below:
General token distribution:
- 3,0 bilhões
Something estimated to be injected into circulation (initially via auction) during the first 5 years
- 1,75 billion
Estimated Participation Rewards (distributed over time)
- 2.5 bilhões
Relay node runners (distributed over time)
- 2.5 bilhões
Algorand Foundation & Algorand, Inc.
- 0,25 billion
End user concessions (distributed over time)
The Algorand Foundation has also published additional details on how payments work and how long users can expect to receive new funds for their blockchain participation.
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