A Beginner’s Guide to Algorand (ALGO) Cryptocurrency

A Beginner’s Guide to Algorand (ALGO) Cryptocurrency

30/10/2020 by Koinal
The Algo is the token of the Algorand Foundation. The Foundation supports the concept of an open and borderless economy. The Foundation promotes a blockchain system that uses internal governance to expand to handle massive transactions at high speeds.

The blockchain would be a platform for companies and organizations to access new and untapped markets that lack access to financial systems. The Foundation designed its blockchain to overcome the traditional barriers to achieving speed, scale, and security. Developers refer to this problem as the blockchain trilemma.

The Koinal portal is an excellent way to start purchasing and owning cryptocurrency. Koinal uses regular bank-issued credit and debit cards, and it works with some of the leading currency exchanges.

The Blockchain Trilemma

The three challenges are operating at the most massive possible scale, fully decentralizing, and fully secure. The blockchain trilemma states that developers must sacrifice one of these three parts to maximize the other two pieces. In plain words, to get the best of scale, you would have to reduce some security protocols or retain some central control. The developers of the Algorand ALGO cryptocurrency sought to solve the trilemma with the below-listed elements.

  • A decentralized system
  •  Open and permissionless access
  • Instant verification
  • Internal Proof of Stake protocol

Proof of Stake

Algorand uses a democratic user participation model for verification. Rather than a mining or proof-of-work process, the system permits every holder to participate. The likelihood of selection is a product of the size of the stake and a random selection variable. The network reaches consensus with a modest tolerance for error or malicious users. A majority of the stakes must always be honest users.

Innovation and Growth

The Foundation has visionary goals of providing a stable platform for global economic development and activity. The governance is internally adaptable to avoid disputes that can cause divisions (forks) or disruptions. The process of validating transactions can be instant and similar to processing the major bank credit cards’ speeds.

Frictionless Finance

The Foundation upgrades its platform to support decentralized applications, DeFi solutions, and other innovative processes. The system supports smart contracts and combinations of dApps to allow customized business solutions. The blockchain is public and requires no permissions. The speed of processing supports immediate transaction settlement. You can participate in Algo and other innovative cryptocurrencies by opening a Koinal account. You can pursue your financial and investment goals while supporting visionary ideas and financial technology innovations. Open your Koinal account today.

1 1 vote
Article Rating
Notify of
Inline Feedbacks
View all comments