Algorand is a decentralized network created in 2017 by MIT Professor and cryptography scientist Silvio Micali, most renowned for his contributions to zero-knowledge proof. Algorand aims to solve the blockchain trilemma of achieving scalability, security and decentralization at the same time.
Algorand functions similarly to the Ethereum blockchain, but with much faster transactions and a larger focus on immediate transaction finality. For example, it can process more than 1,000 transactions per second. Algorand uses ASA, the Algorithm Standard Protocol, which has been compared to Ethereum’s ERC-20 protocol.
Algorand uses a Pure Proof-of-Stake (PPoS) mechanism, where participation nodes are randomly selected with direct proportionality to the amount of ALGO staked. The current annual staking reward is between 4-6% with a zero lock and unlock period. Anyone holding ALGO in their wallet can act as a participation node and earn staking rewards.
ALGO is Algorand’s native coin and is used for staking, transaction fees, and governance. Algorand has immense real-world value and is already powering SOV in the Marshall Islands, the first national digital currency.