Algorand Foundation Ltd is incorporated in Singapore and was founded in 2017 by the Italian inventor Silvio Micali.
Algorand uses a PPoS (Pure Proof of Stake) protocol where the influence of each user on the choice of a new block is proportional to his stake (number of tokens) in the system. The probability that a user will be chosen and the weight of his proposals and votes are directly proportional to his stake.
All online users have the chance to be selected for proposing and voting. The Algorand network supports two types of nodes to optimize the decentralization of transactions: relay nodes and participation nodes.
Configuration is the only difference between these nodes, not the software. Relay nodes act as a network hub and maintain connections to many other nodes. These nodes have high-performance network connections that enable efficient communication paths, ultimately reducing the transmission time of sending a message across the network. Participation nodes are linked to relay nodes. They act as a user agent in the system and with the user's participation key, these nodes contribute to the Algorand consensus protocol on behalf of the user's participation within the consensus algorithm.
Algorand Smart Contracts are integrated on-chain on Algorand Layer-1 exploiting all Algorand blockchain features such as speed, scalability, security and error avoidance. Smart Contracts on the ALGO’s blockchain are also quite cheap to execute since the fee for ALgorand transaction is just 0.001 Algos.
Beside this fact, Algorand Standard Asset gives a mechanism to represent every asset on the blockchain including all kind of Fungible and Non-Fungible Tokens. And you know, Tokenization is always watching from the window when talking of Non fungible Tokens!
You know: during the DeFi bubble ETH commissions have raised a lot, so, having a faster blockchain, decentralized but cheaper, could be a great solution.
Algorand Reward Mechanism
Algorand pays in the form of the Staking rewards and in the following video I perfectly explained how to put our ALGOs on staking for an Annual Yield up to 8%.
Considering that ALGO is a great project that aims to become a competitor to the biggest public blockchains and payment methods, I consider for my Accumulation Strategy a good strategy to hold ALGO in Staking. If you consider that while I am writing the price of ALGO is around 30 USD cents and its higher peak was 3.30 dollars, I see room for a 10x value increase.
What’s your opinion on Algo? Are you considering it as a good staking resource?