Algorand (ALGO) is a new cryptocurrency that is trying to address the three biggest issues plaguing the crypto space – decentralization, security, and scalability. Currently, a crypto project can’t improve two features without compromising the third one. Eg. Bitcoin is fully decentralized and secure but has notable scaling problems. On the other hand, while Ripple is secure and scalable, it is highly centralized.
Algorand aims to provide a decentralized network for fast (1,000 TPS), secure, and cost-effective transactions. Plus, it will also allow users to efficiently tokenize assets with maximum transparency.
Algorand Overview
Algorand has a brilliant team led by Silvio Micali. Micali is a professor at MIT, co-inventor of probabilistic encryption, Zero-Knowledge Proofs, and Verifiable Random Functions. He also is a recipient of the Turing Award. Algorand’s purely proof-of-stake (PPOS) blockchain maintains full participation, protection, and speed within a truly decentralized network.
Algorand is a permissionless network that is open to all and doesn’t need the approval of a trusted authority to use the blockchain. It also requires minimal processing power and IT resources to join the network. Anyone who possesses ALGO tokens can participate in block consensus.
Algorand Transaction Features
Algorand offers secure and cheap transactions which charge a minimum of 0.001 ALGOs per transaction. It provides an affordable cross-border payment solution that allows users to create multiple transactions in advance. When it comes to standard cryptocurrencies, transactions are usually one and done deals. However, Algorand revolutionizes this by bringing in a feature that works similar to post-dated cheques. Algorand users can generate a vesting schedule by creating signed transactions in advance. This is how it works:
- The payer creates a number of signed transactions with different block periods before sending it over to the payee.
- As soon as one of the block periods becomes valid, the payee broadcasts the transaction.
- Because of this, the payee receives the payment in a timely fashion.
This feature will potentially allow banks and financial institutions to issue loans with scheduled repayment workflows.
Tokenizing Assets
Algorand also allows users to tokenize various assets like real estate. Sellers can tokenize their real estate assets through AssetBlock. AssetBlock’s application leverages Algorand’s non-interactive trade mechanism. The sellers will only need to post their properties for sale on the network. As soon as the buyer agrees on the price, the sale takes place. The trade can happen without the involvement of sellers.
The Foundation will award 200 million ALGOs to participants who opt-in by registering their wallets. Qualifying participants must register their wallet before a specific block that is estimated to happen before 11:59 pm SGT on August 31st, 2019.
These 200 million ALGOs will be distributed for four 6-mon
How to be a Part of Algorand?
Algorand provides plenty of features that put it ahead of its competitors. It offers an elegant solution to the blockchain trilemma (scalability, security, and decentralization) by creating a secure, fast, and cost-effective network for borderless transactions. Along with this, Algorand allows users to create a vesting schedule and enables sellers to tokenize assets such as real estate properties.
Simply put, Algorand brings in numerous use-cases, while solving some of the most significant issues plaguing the space. As such, this network has plenty of potential for growth. So, if you want to be part of this network, the Algorand Foundation has announced a staking rewards program which you might be interested in.
Participants must have a minimum of 25 ALGOs int their wallets. If their balance drops, the participants become disqualified. The entire staking reward pool is fixed and will be distributed on a stake-weighted basis only to remaining qualifying participants at the end of each 6-month period. If a participant gets disqualified, then their alloted reward ALGOs remains in the staking reward pool and are distributed to the remaining eligible users.
The staking reward ALGOs for that period (50,000,000) divided by the total number of ALGOs across all qualifying wallets gives you the staking reward earned by a participant. The Algorand Staking Reward Ranking will be published by the Foundation which will list eligible addresses alongside their balance and the potential staking reward ALGOs.
To take part in the program, you can register your wallet by submitting a microtransaction of 0.000001 ALGO to the following address:
ZGP25YTZL3NF43SQZREMH5BRBTJEXHWPL6TSQDCGJWPEN4XJTIHVOZSOLA
This transaction must not be sent any later than block number 1618450, which is expected to happen between August 31 and September 1, 2019.
