What is Algorand?
Algorand is a project focusing on broadening cryptocurrency’s potential applications by speeding up transaction processing and shortening the period it takes for transactions to be considered complete on its network.
Algorand, which will be officially launched in 2019, aims to accomplish these characteristics by making choices that differ from how cryptocurrencies have historically been built.
The ALGO cryptocurrency, which Algorand integrates into its economy with each new block, is distributed to anyone who has a certain amount of the currency in their wallets.
Users may also generate smart contracts (programmatic agreements for creating decentralized applications) and tokens to display both new and current properties with Algorand.
How does Algorand work?
Algorand is a decentralized Byzantine agreement protocol focused on Pure Proof-of-Stake that operates on the blockchain. Several characteristics of the Algorand protocol should set it apart from related competitive solutions:
To reach consensus, users are not allowed to use the keys to expand their stakes. Instead, Algorand allows users to generate and register their participation keys in order to participate in the protocol.
The key is then used to authorize an individual account’s role in producing decisions and voting on blocks. And if a participating node is hacked, security is accomplished by holding the ALGO tokens safe with the aid of the keys.
On the Algorand protocol, the Verifiable Random Function (VRF) supports the self-selection mechanism, which allows users to secretly decide whether or not they have been chosen to participate in the consensus protocol round.
The fact that Algorand’s blocks feature a randomized list of users qualified for inclusion underpins this technique. Participants are informed of the seed each time a new block is committed to the Algorand blockchain, and the Verifiable Random Function is verified by the recipient using the hidden participation key and the selection seed.
VRF operations generate a cryptographic proof that can be used by anybody who needs to validate the data. The key advantage is that this feature needs very little computational resources to operate.
What is the History of Algorand?
Algorand was founded by computer scientist and MIT professor Silvio Micali.
His collaboration with his colleague Shafi Goldwasser earned a 2012 Turing Award, a prestigious honor in the field of computer science.
Micali is credited for helping to render cryptography a more “precise discipline” through work that formalized basic ideas regarding some of the field’s important building blocks, according to the Association for Computing Machinery, which bestows the award annually.
In 2017, Micali collaborated with Jing Chen, a professor at Stony Brook University, to write the Algorand white paper. Other scholars and cryptographers have built on this seminal work in white papers accessible on the project’s official website.
The Algorand Foundation, a Singapore-based organization created to advance technology and which obtained an allocation of ALGO tokens in exchange for its efforts, is funding this work.
How do I hold Algorand?
Users can hold and stake their ALGO on the official Algorand wallet.