Algorand is a blockchain focused on improving scalability without sacrificing decentralization. This is a common problem for many layer-1 and layer-2 blockchains, such as Bitcoin and Ethereum. To this end, Algorand has developed its most notable feature: the Pure Proof of Stake (PPoS) consensus mechanism. Along with passive staking, both of these features have made Algorand a popular large market cap project with users looking for rewards. Read this article from <a href="https://www.builder.news/" alt="Builder.news website" title="Builder.news webaite" target="_blank" rel="" class="">Builder.news</a> below to learn a deep knowledge about this ecosystem.<img src="https://cdn.builder.news/news/11ed0bfe682b85dda8e6023f659fee92.jpg" alt="Algorand review" title="Algorand review" width="600" height="333"><h2>Algorand overview</h2><h3>Algorand project</h3>Algorand, founded in 2017, is one of the leading blockchain technology innovators transforming all types of economies and economic models. Algorand's powerful Layer-1 blockchain and Proof-of-Stake model are said to offer quick, easy, and inclusive technologies to everyone. In detail, the Algorand platform is meant to process a large number of transactions quickly, much like big payment processors such as Mastercard or Visa. Algorand is a direct competitor to Ethereum because it can host other cryptocurrencies and blockchain-based initiatives. Besides, <a href="https://ecosystem.algorand.com/" alt="Algorand Ecosystem" title="Algorand Ecosystem" target="_blank" rel="nofollow" class="">Algorand ecosystem</a> is thriving with different sectors ranging from the primary field - DeFi to NFTs. Each sector is listed with respective projects successfully innovated by Algorand on its ecosystem page.Algorand blockchain is also joining hands with outsiders to expand its influence and prove its efficiency by sponsoring FIFA's blockchain integration. Recently, FIFA announced that they would partner with Algorand for the official blockchain-supported wallet solution and its official blockchain platform. Algorand will be a FIFA Women's World Cup Australia and New Zealand 2023 Official Sponsor as well as a FIFA World Cup Qatar 2022 Regional Supporter in North America and Europe.<h3>Algorand ecosystem</h3><img src="https://cdn.builder.news/news/11ed2786b56199cea8e6023f659fee92.jpg" alt="Algorand ecosystem" title="Algorand ecosystem" width="600" height="361">Algorand is making it easier to create next-generation financial products, protocols, and exchanges among DeFi, financial institutions, and governments thanks to the use of its platform by more than 500 global organizations. Algorand's ecosystem is also growing stronger with the following segments:<h4>DeFi</h4>Algorand ecosystem’s TVL according to DefiLIama (at the time of writing) is $203.58m. Algofi is a comprehensive DeFi solution for the Algorand ecosystem. The project's ambitious plan is to develop core protocols from Ethereum while embracing the outstanding performance of AVM. These will form the core foundation of DeFi on Algorand and will pave the way for future developers on the blockchain. <ul><li>Tinyman: A native AMM-DEX on the Algorand ecosystem. New project to mainnet in 1Q2022 with basic features such as token swap, add liquidity, stake. The project has attracted $18M TVL.</li><li>Yieldly: A project about Yield-Farming on the Algorand ecosystem. The project provides features of Liquidity Mining, Swapping tokens Cross-chain, Prize Pools, and so on.</li></ul>The number of DeFi projects in the Algorand ecosystem is quite rich with approximately 50 projects, but not many projects have launched the mainnet yet. Because there is no bridge and compatible gateway to other ecosystems, leading DeFi applications have not yet appeared in the Algorand ecosystem.<h4>Stablecoin</h4>In the Algorand ecosystem, there are 4 stablecoins including 2 popular stablecoins, USDC and USDT, and 2 native stablecoins. Regarding the relationship between <a href="https://www.builder.news/crypto-insights/types-of-stablecoins-and-their-role-VEnZL" alt="3 Types Of Stablecoins And The 3 Reasons Why We Still Need Them" title="3 Types Of Stablecoins And The 3 Reasons Why We Still Need Them" target="_blank" rel="" class="">stablecoins</a> and Algorand, the ecosystem also includes Element - DeFi 2.0 Stablecoin platform in combination with stablecoin issuance protocol e-Money. By connecting with Algorand, the insurance protocol is aimed to support a range of European stablecoins.&nbsp;<h4>Bridge</h4>There have been 3 projects to make Bridge to Algorand: Algomint, Swingby, and Yieldy Finance.<ul><li>Swingby is a project to bridge BTC and ETH to other blockchains but is not yet active on Algorand.</li><li>Algomint is a bridge project but is at the testnet stage and requires KYC to use the product – an element that DeFi users do not feel comfortable using. Although they do not directly perform KYC work, but through another reputable KYC service provider, this is still a big barrier to bringing money into the Algorand ecosystem easily.</li><li>Yieldy Finance, although already in operation, makes it easy to bridge assets from Algorand to ETH and vice versa (ERC-20 assets)</li></ul><h4>NFTs</h4>Not only focusing on DeFi, <a href="https://www.builder.news/sub-category/nft" alt="NFTs research and insights on Builder.news" title="NFTs research and insights on Builder.news" target="_blank" rel="" class="">non-fungible tokens</a> are also a top priority of the Algorand ecosystem:<ul><li>AB2 Gallery: NFT Market on Algorand, now in operation but only in Open Beta.</li><li>Smilecoin: Project about Web3 and Gaming on Algorand.</li><li>Zestbloom: NFT Market on Algorand, running testnet.</li><li>AlgoWorld: NFT project on Algorand.</li><li>NFT Explorer: Explorer for NFT on Algorand.</li><li>...</li></ul><h4>Others</h4><ul><li>PlanetWatch: This is a decentralized air quality monitoring network on Algorand. The project received a $10 million fund from Borderless Capital.</li><li>Attestiv: As an insurance project, Attestiv verifies the authenticity of data and digital media, helping organizations build efficient processes, improve customer experience, and deliver the highest standards for information exchange.</li></ul>Algorand's blockchain solutions allow Attestiv to store digital media assets directly on the blockchain with a digital "fingerprint", ensuring that assets are not manipulated in the event of insurance fraud.<h2>Algorand review</h2><h3>Algorand key features</h3>Algorand is dedicated to fulfilling the global promise of blockchain technology by leveraging the Algorand protocol and open-source software. With a core belief in establishing an open source and permissionless blockchain, Algorand aims at a holistic ecosystem that provides opportunities for potential operators of an economy. <ul><li>Pure Proof-of-Stake: Algorand uses the Pure Proof-of-Stake (PPoS) consensus protocol built on the Byzantine agreement, whereby users influence the selection of a new block proportional to the rate.</li><li>Instant Transaction Completeness: The Algorand blockchain does not fork as only one block can have a signature requirement threshold to be certified within a certain round.</li><li>Self-selection:&nbsp;All users are randomly, secretly, and continuously selected to participate in the Algorand consensus protocol - no authorized user or a fixed committee is responsible to propose blocks in Algorand.</li><li>User replaceability:&nbsp;Participants change every round of block selection in order to protect the network against attackers and in each round, every set of participants is random and independent of earlier participants.</li></ul><h4>Algorand Staking Mechanism: Pure Proof-of-Stake</h4>According to Algorand's PPOS, the number of ALGO tokens a user holds is proportional to the selection of a new block present in the system, called a stake. The larger this stake, the more votes they own, giving them a better chance of being selected as a new block proposition. Through this approach, the security of the network is tied to the honesty of the majority of users in its economy.This approach contrasts with other consensus mechanisms such as PoW, DPoS or BPoS. For example, for the above forms, small groups in the general economy of the protocol will be responsible for the security of the entire system. In theory, a small fraction of users could prevent other users from trading using these approaches.&gt;&gt;&gt; Read more:&nbsp;<a href="https://www.builder.news/crypto-insights/pow-compared-with-pos" alt="PoW compared with PoS - What solution is optimal?" title="PoW compared with PoS - What solution is optimal?" target="_blank" rel="" class="">PoW compared with PoS - What solution is optimal?</a><h2>Algorand review: Tokenomics</h2>The platform's native currency is $ALGO. Unlike the standard proof-of-stake approach, which allows cryptocurrency holders to choose whether or not to validate transactions, the pure-proof-of-stake method recruits validators from the whole pool of ALGO holders.ALGO holders who stake their ALGO and agree not to trade or sell their ALGO are paid each time a new block is added to the Algorand blockchain. Also, ALGO can also be used as a utility token to pay transaction fees.<h3>Algorand key metrics</h3><ul><li>Token Name: Algorand (ALGO)</li><li>Ticker: ALGO</li><li>Blockchain: Algorand</li><li>Total and maximum token supply: 10,000,000,000 ALGO</li><li>Token type: Native</li><li>Consensus Algorithm: Proof-of-Stake</li></ul><h3>$ALGO allocation</h3>The following is Algorand's token distribution:<img src="https://lh6.googleusercontent.com/baDXkVMm61fJFeYCBRa6dIvgTclQXmdPtBnBLRkskrxiz4kYejcbv_JJXkPdTFTyrUcH2lGr_KZJSgGy_UJ7Ddo_MLNAbb7AsBucrdaZz61QABIKQ1FpoUixpqke5XDGoCkET1KrqDpHnzJiag" alt="ALGO Token Distribution" title="ALGO Token Distribution" width="624" height="327"><h3>Algorand token use cases</h3>Algorand can be utilized for traditional DeFi and NFT use cases, which are both quite appealing given the chain's strong architecture. It has, nevertheless, succeeded in piquing the interest of business and public sector stakeholders in payment systems. Algorand, with its diversity, has the potential to become a fascinating blockchain supporting a variety of industries.<h3>Token supply schedule</h3><img src="https://lh4.googleusercontent.com/CIj-GnxnNVZsgpiayzEoFUex7m4q7PKB1YlE-9hkxoKnP2eFzan-yAUQ4Dtp_51hEIU6V5XMH2vUL0K3O_Z91Bwu9Gki7XR5CVRsU_8EQ7w9ivwKDFvQMbWEzXE8HaJYMQuPXTLuJszUScUNlQ" alt="ALGO Token Supply Schedule" title="ALGO Token Supply Schedule" width="624" height="471">The following ALGOs will be integrated into the network over time:<ul><li>ALGOs expected to be infused into the market (initially via auction, distributed over time) - 2.5 billion dollars</li><li>Estimated participation incentives (distributed over time) - 1.9 billion dollars</li><li>Runners at the first relay node (distributed over time) 3.1 billion dollars</li><li>Algorand, Inc. has a market capitalization of $2.0 billion</li><li>0.5 billion for the Algorand Foundation</li></ul>Vesting of relay nodes is hastened. On September 30th, 2019, relay nodes voted to postpone their ALGO payouts, allowing Algorand and relay node administrators to consider future changes to the rewards schedule. Because the ALGO supply growth at the time was "too great relative to the status of adoption," Algorand investors USV and Pillar advocated for a new, longer vesting schedule. Relay nodes chose to postpone their ALGO payments twice more until the network adopted EIP-11252019AF, which increased the vesting period from 2 to 5 years, implying that payouts would be completed by the end of 2024. However, this revised plan rewarded relay nodes by raising their share of ALGO supply by 25% and provided an expedited vesting schedule if the price fell.Unvested relay node tokens will now vest in accordance with the following guaranteed base vesting schedule:<ul><li>3% in year one (2020), (for a total of 17%, as relay nodes had already received 14% of their total share at this point)</li><li>8% in the second year (2021), (for a total of 25%)</li><li>25% in year three (2022), (for a total of 50%)</li><li>35 percent in year 4 (2023), (for a total of 85%)</li><li>40% by year 5 (2024), (for a total of 125%)</li></ul>Although this schedule can be accelerated depending on the 30-day moving average of the ALGO price, Algorand determined the supply curve using the basic vesting schedule.<h3>Where to buy $ALGO</h3>Algorand may be purchased using the following exchanges: Coinbase,&nbsp;Binance, OKEx, Kraken, Huobi.<h2>Algorand team and partners</h2><h3>Team</h3><img src="https://cdn.builder.news/news/11ed2786b561a167a8e6023f659fee92.jpg" alt="Algorand team" title="Algorand team" width="600" height="576">The Algorand development team includes internationally recognized researchers, mathematicians, cryptographers and economists along with proven business leaders from global technology companies.Silvio Micali – FounderSilvio Micali has been a faculty member at MIT, Department of Electrical Engineering and Computer Science, since 1983. Silvio is a recipient of the Turing Prize (for computer science), the Gödel Prize (for theoretical computer science) and the RSA award (for cryptography). In 2017, Silvio founded Algorand. At Algorand, Silvio oversees all research, including cryptocurrency theory, security and finance.Steve Kokinos – CEOSteve is the CEO of Algorand and is responsible for the overall business vision and strategy. Steve is a talented businessman, he has founded and run many companies in the past. He is the Co-Founder and Executive Chairman of Fuze, a company with more than 700 employees serving more than 1500 corporate clients around the world. Before Fuze, Steve was a co-founder of BladeLogic, Inc.,. Bladelogic held a successful IPO and was later acquired by BMC Software for ~$800 million.W. Sean Ford – COOSean is the COO of Algorand, responsible for marketing and operations implementation including product management, engineering, marketing and global community development. Sean has also held a number of executive leadership roles including CMO and COO of Zmags, CMO of Syncsort and vice president of Global Business Unit (GBU).<h3>Partners</h3>A diversified worldwide collection of partners for Algorand includes members of the financial services, venture capital, and technology industries.&nbsp;<img src="https://cdn.builder.news/news/11ed2786b561a726a8e6023f659fee92.jpg" alt="Algorand partners" title="Algorand partners" width="600" height="713"><h2>Algorand social channels</h2><ul><li>Telegram: <a href="https://t.me/algorand" alt="Algorand Telegram" title="Algorand Telegram" target="_blank" rel="nofollow" class="">https://t.me/algorand</a></li><li>Twitter: <a href="https://twitter.com/Algorand" alt="Algorand Twitter" title="Algorand Twitter" target="_blank" rel="nofollow" class="">https://twitter.com/Algorand</a></li><li>Linkedin: <a href="https://www.linkedin.com/company/algorand/" alt="Algorand Linkedin" title="Algorand Linkedin" target="_blank" rel="nofollow" class="">https://www.linkedin.com/company/algorand/</a></li><li>Facebook: <a href="https://www.facebook.com/algorand/" alt="Algorand Facebook" title="Algorand Facebook" target="_blank" rel="nofollow" class="">https://www.facebook.com/algorand/</a></li><li>Reddit: <a href="https://www.reddit.com/r/AlgorandOfficial/" alt="Algorand Reddit" title="Algorand Reddit" target="_blank" rel="nofollow" class="">https://www.reddit.com/r/AlgorandOfficial/</a></li><li>Medium: <a href="https://medium.com/algorand" alt="Algorand Medium" title="Algorand Medium" target="_blank" rel="nofollow" class="">https://medium.com/algorand</a></li></ul><div class="pr-block-special">Disclaimer: This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

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Algorand Review: A layer-one extensible blockchain based on proof-of-stake