Complete Conquest of Algorand (ALGO) - Everything about the next-generation blockchain created by an MIT professor
Introducing Algorand (ALGO) - Why is it special?
Algorand is not just a simple cryptocurrency. It can be said to be the culmination of next-generation blockchain technology. This is an innovative platform developed by MIT professor Silvio Micali, who won the 'Turing Award', which is called the Nobel Prize of computer science in 2017.
Algorand's biggest feature is its 'trilemma resolution'. It is evaluated as having caught all three rabbits of security, scalability, and decentralization that existing blockchains could not solve. In particular, it can process more than 1,000 transactions per second, but the fee is only 0.001 ALGO (about a few won).
• Block generation time: 4.5 seconds (overwhelmingly compared to Bitcoin's 10 minutes and Ethereum's 15 seconds)
• Transaction finality: Immediately completed (cannot be reconstructed)
• Energy Efficiency: 99.99% less energy consumption than Bitcoin
• No Forks: Zero Risk of Network Partition
Algorand's Birth Story - Innovation Started at MIT
Algorand's beginnings date back to June 2017. At that time, Professor Silvio Micali, known as the father of cryptography, was clearly aware of the limitations of existing blockchains. He wanted to fundamentally solve the slow speed of Bitcoin, the high fees of Ethereum, and the scalability problem that all blockchains face.
Since its mainnet launch in June 2019, Algorand has shown remarkable growth. In September 2020, it attracted $60 million in investment, and in 2021, it began to receive global attention as it was listed on major exchanges such as Binance and Coinbase.
What is particularly impressive is the Algorand Foundation's approach. Rather than simply focusing on increasing the token price, it is working hard to create real-world use cases. Representative examples include the development of a central bank digital currency (CBDC) in the Republic of the Marshall Islands and a partnership with the Fédération Internationale de Football Association (FIFA).
Pure Proof of Stake - Algorand's magical technology
The core of Algorand is its unique consensus algorithm called 'Pure Proof of Stake (PPoS)'. It's a completely different approach from the existing Proof of Work (PoW) or Proof of Stake (PoS).
1. Cryptographic Lottery: All ALGO holders automatically become validator candidates
2. Secret Voting: Randomly select validators through a Verifiable Random Function (VRF)
3. Instant Finality: Finalization occurs as soon as a block is created (no forks possible)
4. Economic Incentives: A structure where all participants receive rewards
The biggest advantage of this system is that 'no one knows in advance who the next validator will be'. Therefore, hacking or manipulation is fundamentally impossible. Just like you can't know the lottery winners in advance.
| Category | Bitcoin (PoW) | Ethereum (PoS) | Algorand (PPoS) |
|---|---|---|---|
| Processing speed | 7 TPS | 15 TPS | 1,000+ TPS |
| Block time | 10 minutes | 15 seconds | 4.5 seconds |
| Fees | High | Very high | 0.001 ALGO |
| Energy consumption | Very high | Medium | Almost zero |
Algorand's endless applications
Algorand's applications are truly vast. Due to its high performance and low cost, it is actually being adopted in various industries.
Algorand is already a proven platform in the field of central bank digital currency (CBDC). The Republic of the Marshall Islands was the first in the world to issue an Algorand-based CBDC, and several countries are currently considering its adoption.
DeFi (decentralized finance) is also growing rapidly. Various DeFi protocols such as Tinyman (DEX), Algofi (lending platform), and Yieldly (staking) are actively operating within the Algorand ecosystem.
NFT and games are also attracting attention. Thanks to the low fees, you can easily trade small NFTs, and it is optimized for trading in-game items.
It is also highly utilized in the fields of supply chain management and ESG. Algorand's transparency and efficiency shine in carbon credit trading, sustainability tracking, etc.
Complete Guide to Algorand Exchanges
Algorand (ALGO) can currently be traded on most major cryptocurrency exchanges around the world. Each exchange has different features, so it is important to choose the one that suits you.
Among overseas exchanges, Binance boasts the largest trading volume, and it is also actively traded on Coinbase, Kraken, FTX, etc. In particular, Binance also provides an ALGO staking service, so you can earn additional profits.
In domestic exchanges, you can trade ALGO on Upbit and Bithumb. It is convenient for beginners because it supports Korean and allows direct KRW trading.
• Fee comparison: Check the transaction fee and deposit/withdrawal fee carefully
• Security level: Check security features such as two-step authentication and cold wallet storage
• Trading volume: High trading volume ensures smooth trading
• Additional services: Consider staking, lending, and more
Algorand Community - An Ecosystem That Grows Together
One of Algorand's greatest assets is its vibrant and healthy community. Developers, investors, and users communicate together to develop the ecosystem.
Official channels include the Algorand Foundation website (algorand.foundation) and the official blog for the latest updates and technology developments. The monthly development updates are particularly useful as they provide detailed information on the project's progress.
On social media, Twitter @algorand and the Telegram and Discord channels are the most active. You can quickly receive real-time updated information, and you can also have active discussions with other users.
The developer community** is also very active. Open source projects are actively being conducted on GitHub, and hackathons and developer challenges are held regularly. The prize money is also considerable, so developers from all over the world participate.
The Algorand Korean community is also actively operating in Korea. Information is shared in Korean through Naver Cafe and Telegram group chats, and regular meetings are also held.
Algorand Wallet - The Key to Safe Storage
Choosing the right wallet is essential to safely store and manage Algorand. Fortunately, ALGO is supported by various wallets, so you can choose according to your preference.
Algorand Wallet, the official wallet, is a mobile wallet that can be used on both iOS and Android. It is intuitive to use and automatically receives staking rewards, making it the most recommended choice for beginners. It also supports quick remittance via QR code and DApp connection via WalletConnect.
Hardware wallet supports ALGO in the Ledger Nano series. It can be stored offline, so there is almost no risk of hacking, making it ideal for long-term storage of large amounts of ALGO. However, please note that you must link with an online wallet to receive staking rewards.
MyAlgo Wallet and Pera Wallet are popular as web wallets. It is convenient because it can be used directly in the browser, and it is easy to integrate with various DeFi protocols.
Algorand automatically receives staking rewards as long as you hold ALGO without any special settings. It currently offers an annual reward rate of about 4-6%, and there is no lockup period, so you can trade freely at any time.
Algorand Investment Guide - Essential Information for Smart Investment
If you are considering investing in Algorand, there are a few important factors to consider. Like other cryptocurrencies, ALGO has high volatility, but at the same time, it has growth potential based on solid technology and real-world use cases.
Positive Factors:
• Technical Excellence: Solving the Trilemma and Innovativeness of the PPoS Algorithm
• Real-world Cases: Practical Applications such as CBDC and FIFA Partnership
• Reliability of the Development Team: Top-notch team led by a Turing Award winner
• Continuous Development: Regular Updates and Ecosystem Expansion
Risk Factors:
• Increasing Competition: Strong Competitors such as Ethereum 2.0 and Solana
• Market Dependency: Highly influenced by the overall cryptocurrency market situation
• Regulatory Uncertainty: Changes in cryptocurrency regulations in each country
• Clearly set your investment objectives and period
• Limit your investment to 5-10% of your total portfolio
• Make decisions based on technical and fundamental analysis rather than emotional judgments
• Invest only the amount you can afford to lose
• Continuously monitor the progress of the project
Personally, I recommend approaching Algorand as a long-term investment in 'future Internet infrastructure' rather than a simple speculative target. As the Web 3.0 era begins in earnest, the demand for high-performance blockchains will continue to increase, and I think Algorand is likely to be at the center of it.
A blockchain innovation journey with Algorand
We've looked at everything about Algorand (ALGO) so far. Have you felt how this project, which started with a genius idea from an MIT professor, is becoming a game changer in the blockchain industry?
Investing in cryptocurrency is never easy, but I think it is definitely meaningful to invest in a project with solid technology and a clear vision for the long term. I hope that Algorand's dream of a 'blockchain world accessible to everyone' will become a reality soon!
In the next post, we will go into more detail about how to actually use the major DeFi projects in the Algorand ecosystem. If you have any questions, please leave a comment at any time! 🚀