- Token: ALGO
- Launch Date: 2019
- Consesus Mechanism: Pure Proof of Stake (PPoS)
- Pros: Fast, Robust, Developer Friendly, Strong Founding Team, Supply Limit Cap, APY
- Cons: Smaller Ecosystem, Immature, Second-Mover Advantage vs. Ethereum
Algorand: is a permissionless blockchain that requires minimal computational power to join. All users who possess Algos, and are online, are automatically eligible to participate in block consensus.
Pure proof-of-stake: A design implementation that defines how people can participate in a decentralized network while preventing forged identities at the same time. It is a mechanism that when combined with a Byzantine agreement protocol creates a way for a large group of people to achieve consensus—or, a single, verifiable source of truth. Pure proof-of-stake means that for anyone wanting to participate in the Algorand network
Continuous distribution of early relay node operator rewards increases the supply of ALGO into the ecosystem for stability. This acts as a deflationary mechanism because of the supply cap limit . Contrary to some beliefs that people with big stakes would want to see their investment reduce in value (as this was a known mechanism when they signed up), this actually acts as an incentive to grow the network and it’s value. Staking is the key here.
Accelerated vesting of additional ALGO that occurs when the 30 day moving average hits a new all time high. Importantly, this will cease in 2023 (unless a governance decision alters that which is never off the table).
Stateless smart contracts are used to approve spending or asset transfer transactions and often govern all transactions from a specific account. Their primary function is to approve spending transactions with logic. Algorand transactions requires signing with a user’s signature, a multi-signature or with a stateless smart contract’s logic.
Stateful smart contracts implement application logic and can store and update on chain values. These contracts primarily function as state holding contracts. They store on chain values for the contract globally or for individual accounts that have opted into the smart contract. In this sense, these contracts live on the blockchain and can be initiated by anyone.
Algorand is one of the fastest public blockchains capable of processing 1,000+ transactions per second (tps) with instant finality. Additionally, The blockchain will also introduce block pipelining feature to boost the tps figure to over 45,000. As a result, his enables Algorand to continue to be the go-to platform for crypto payments.
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