Algorand is a DeFi focused Layer 1 chain. It’s Turing complete, scalable, and secure. Moreover users can easily use and port digital currencies and create smart contracts on Algorand.
Algorand is unique in many ways. The first is its lack of gas fees. Algorand does not have any gas fees. Instead, Algorand has a fixed transaction fee, which is roughly 0.001 ALGO. The Algorand network is also extremely fast. It can handle around 1300 transactions per second. This is lightning fast when compared to current popular networks like Ethereum (15tps) and Bitcoin (5tps).
Algorand is also an excellent platform to develop Dapps. It offers its unique Algorand Virtual Machine (AVM) technology. This allows developers to develop smart contracts with a variety of languages including Python and Javascript. This is a huge advantage compared to most blockchain platforms (Rust or Solidity have to be used here and there is quite a learning curve). Developers can build on Algorand with any language that they are comfortable with.
Algorand is a proof of stake chain. More specifically, Algorand uses pure proof of stake (PPoS). PPoS makes Algorand and extremely secure and efficient network.
PPoS works by randomly selecting ALGO holders to validate and approve each block in the chain. A new entity is selected for each new block. If an Algorand node is compromised, staked ALGO tokens would automatically be protected with unique keys. Only users with large holdings of ALGO can theoretically engage in malicious activities. But the system is based on codependency among participants, so malicious activities would also result in a deterioration of their ALGO.
One great thing about Algorand is the low staking requirements. You can stake as little as 1 ALGO and earn rewards. ALGO tokens are used to pay for transaction fees and reward users who participate in the network’s consensus process. Transactions with ALGO happen in less than four seconds, regardless of how many transactions occur simultaneously. There are over 500 organizations currently participating in the ecosystem
Algorand is a great chain for DeFi. It’s extremely fast and secure and it’s easy to develop on. Moreover, Algorand allows devs to create new tokens or transfer existing tokens using the Algorand Standard Asset protocol (ASA), which makes it extremely versatile. Moreover, Algorand allows devs to create new tokens or transfer existing tokens using the Algorand Standard Asset protocol (ASA).
