What is Algorand?
Algorand is a blockchain project founded in 2017 by Professor Silvio Micali, a renowned computer scientist from MIT. Its mainnet went live in June 2019, and it introduced its native cryptocurrency, ALGO, at the same time. The goal of Algorand is to improve the scalability of older blockchains while still supporting smart contracts. The Algorand blockchain is decentralized and public, using a Pure Proof-of-Stake (PoS) consensus mechanism. It is also possible to use Algorand to create customized layer-1 blockchains.
One of the key features of Algorand's Pure PoS consensus mechanism is that it helps to decentralize the power dynamics that are often seen in traditional PoS models. This means that anyone who wants to participate in the network can do so by staking even small amounts of ALGO, and they have an equal chance of being randomly selected as a validator or block proposer.
ALGO is Algorand's native coin, with a maximum total supply of 10 billion. The project aims to fully distribute the supply by the end of 2030. You can earn ALGO by holding at least 1 ALGO in a non-custodial wallet, as you will receive a reward whenever a new block is successfully added to the network. This can provide an annual percentage yield (APY) of around 5-8%. ALGO is a popular choice for investors who want to earn passive returns without needing to actively stake the coin. It can also be used to pay network transaction fees and for staking to generate consensus on the Algorand network.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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