What Is Algorand and How to Exchange ALGO at the Best Rates?
Over the years, the open-source software company “Algorand” has worked relentlessly to develop a permissionless, Proof-of-Stake protocol, featuring security, transaction finality, open participation, and scalability. In addition, the Algorand crypto company is also working towards a borderless economy. Let’s take a closer look at this fascinating project.
What is Algorand?
Algorand is a cryptocurrency that aims at providing solutions for the three major problems troubling the blockchain network of today, such as decentralization, scalability, and security. Algorand cryptocurrency utilizes a Proof-of-stake consensus protocol to distribute rewards to validators who are ALGO coin holders. Thanks to the equitable community incentivization and strong output capacity, Algorand is able to manage high-output prerequisites necessary for global adoption and usage as well as a series of use cases.
ALGO crypto blockchain technology does not only provide everyone with the privilege of building on the blockchain but also aims at creating a strong payment network with quick transaction speed combined with the possibility of achieving near-instant finality. The near-instant finality allows over 1000 transactions per second.
The cornerstone of the Algorand network structure centers around the ALGO coin, which is the native token of the Algorand protocol. The design of Algorand ensures validators are rewarded for the production of blocks.
The rewards are then split and distributed among all ALGO token holders. This unique protocol design ensures holders are properly rewarded just as block producers, i.e. holders can earn about 7.5% APY for holding as of February 2021.
Every 10 minutes, rewards are distributed. This system of rewards encourages more users to join the Algorand Crypto staking platform as well as hasten decentralization. Not only is this method easier for users but also rewarding.
Users don’t really have to stake as part of the validation and block mining process before earning because Algorand also rewards users for holding ALGO coins in a non-custodial wallet or crypto exchange. This method means ALGO crypto coin stakers can also hold the token passively to earn rewards.
How does Algorand work?
One of the things that make the Algorand coin unique is the Pure-Proof-of-Stake protocol developed on the Byzantine consensus. With this protocol, each user’s influence on decision-making is dependent on the stake they have.
To make it more profound, the users must be secretly and randomly selected before proposing blocks and voting on the block proposed. The chance of being selected is open to all users depending on the proportion of its stake.
When it comes to ALGO crypto PPOS, the security of the whole ecosystem is linked to the honesty of the majority of the ecosystem. This means the system remains secure as long as the funds are handled with honesty.
Putting the Algorand approach into consideration shows that a small section of the ecosystem helps determine the security of the whole system, that is a small section of users is enough to prevent other users from performing transactions. The Algorand protocol makes it impossible for users with a small fraction of the money to disrupt the system. Likewise, it will also be unreasonable for users with a major fraction of the money to disrupt the system. Disrupting the system will only lead to a decrease in currency value and that will harm their investment.
Benefits of ALGO
The benefits of ALGO cryptocurrency technology are numerous but fast block completion and immediate transaction finality whilst preventing forks remain the major ones. Crypto Algorand also offers smart contracts that are very customizable as asset tokenization with atomic transfers created straight on the first layer of the protocol.
Some of the numerous benefits of the Algorand coin includes:
- Low computation prerequisites
Eliminates the need for high energy-consumption mines.
- Fast agreement
Block agreement and transaction confirmation are done by the entire community smoothly and efficiently without delay.
Holders are eligible to delegate tokens to participate in consensus.
- Low fork probability
Users can rely on a new block immediately after it’s completed.
- True decentralization
Random selection of committees and proposers ensures the network remains decentralized.
Changes to the protocol are proposed and voted on by the community token holders.
Algorand vs. Ethereum
Pure Proof of Stake
Proof of Work
1,000 transactions per second
15 transactions per second
Why does Algorand have value?
The number of users adopting the cryptocurrency will determine the ALGO cryptocurrency value once users see the high probability of crypto developers making ALGO the blockchain of their choice when developing and launching all sorts of DApps.
In addition, crypto investors are highly likely to start including Algorand cryptocurrency into their crypto portfolio once they realize the efficiency of proof-of-stake blockchains as they lower the cost of partaking in a blockchain’s activities. The success of PoS in the crypto industry will help drive up the value of the ALGO coin.
Lastly, Algorand is one of the eco-friendly cryptos which certainly drives the interest of many people. The ones who don’t want to harm the environment by using energy-consuming PoW coins, can simply turn to ALGO and enjoy an energy-efficient experience. Moreover, the eco-friendliness allows Algorand to collaborate with respective charities aimed at enviro initiatives.
Why is Swapzone the best place to convert ALGO?
Converting your asset to ALGO is as easy as visiting Swapzone, an ALGO exchange aggregator for the best ALGO value in the market by presenting the best ALGO exchanges at the best price.
Step 1. On Swapzone, you can select the Algorand token-ETH pairing or any other pairing from the list of tokens.
Step 2. Swapzone will pull up all the Algorand exchanges with good value for your money where you can convert your asset to ALGO.
Step 3. Input the amount of BTC you want to exchange then you can select the ALGO exchange that suits you by clicking on the “exchange” button.
Step 4. Input the address where you want to receive the Algorand token. There is also an option for a refund address, which is the address where the coin you converted will be refunded to.
Step 5. Click on the “proceed the exchange” button to carry out the exchange.
Step 6. Now you’re an ALGO holder! Before you enjoy your rewards, please, take a moment to rate your experience and leave an honest review.