What is Algorand?
Algorand is an open-source Layer 1 smart contract blockchain platform. Algorand was launched in 2019 by Silvio Micali, a professor at Massachusetts Institute of Technology who is also a cryptographer and computer scientist.
Algorand’s ALGO token is the digital currency of the platform and is used to pay transactions and used to secure the Algorand blockchain. ALGO’s max token supply is capped at 10 billion tokens. Currently, there are near 7 billion tokens circulating.
Algorand’s consensus model is built based on Pure Proof of Stake (PPoS).
What is PPOS?
PPOS uses verify random functions to increase the security of the network. What this means is that during consensus, PPoS selects a validator node at random to confirm the block.
Every ALGO token in an account gets its own lottery token. More ALGO means better chances of being chosen to participate.
What are the technologies that exist on Algorand?
Algorand Virtual Machine (AVM) — AVM runs on every node in the Algorand blockchain. This allows for smart contracts to be deployed or called remotely from any node on the Algorand blockchain. The AVM supports Python or Reach (JavaScript-like language) and Transaction Execution Approval Language (TEAL).
Algorand Standard Assets (ASA) — to provide standardization for assets on the Algorand blockchain. It’s a mechanism to represent any type of asset on Algorand.
Atomic Transfers — allows fast movement of assets without the need for escrow or reliance on hash time locked type of contracts
Rekeying — allows the changing of the private spending key without changing public key, public key is identity, that’s what we see, private key is held in digital wallet and used to approve transactions on account (non-transparent).
What are some projects built on Algorand?
Currently there are 34 listed projects building on Algorand’s website.
Image from: Home — Algorand Ecosystem
Some notable DeFi projects are:
Folks Finance which is a DeFI protocol for lending and borrowing and today, there is a TVL of over $10 million worth of assets locked on Folks Finance.
There’s also AlgoFi, which is a DeFi Hub on Algorand, it’s there to build the core DeFi protocols from Ethereum but with using the technology advantages of Algorand. AlgoFi is a Defi Dapp for Lending and stablecoins built on Algorand and today has a TVL of over $80 million worth of assets locked on Algofi.
PACT is a Decentralized AMM on Algorand which currently has over $14 million in TVL.
Aside from DeFi bank dapps, there’s also wallets, games, NFT projects, tools and NFT marketplaces being built on the Algorand blockchain.
You can view the rest of the ecosystem in the Algorand Ecosystem Directory.
Algorand Blockchain Explorer:
What’s really nice to see on a blockchain explorer are on-chain statistics. Which is exactually what is provided on the Algorand explorer.
Users can view on-chain volume, transaction metrics, address metrics, NVT and MVRV ratios and a lot of great metrics that are not normally found on other blockchain explorer.
You can view the metrics here at Algorand Stats (algoexplorer.io)
