Introduction To ALGO And Algorand Network
Algorand is a blockchain network launched in 2019 by the Algorand Foundation, with the main purpose of increasing transaction speed, reducing transaction times, and improving the security of the blockchain without compromising decentralization. Today Tokenize Xchange – Digital Asset Exchange Platform will introduce Algorand network and its utility token ALGO. If you are wondering if ALGO is a good investment and how to buy ALGO, this article is for you!
What is Algorand?
Built using a decentralized strategy to improve security and scalability, Algorand is one of the protocols designed to address the blockchain trilemmas, encouraging many private investors to support the blockchain chain. ALGO has a distinct benefit in that each new ALGO token introduced into the system is distributed to all holders of this token.
What is ALGO token?
The utility token of the Algorand network, ALGO can be staked and used to earn rewards on the Algorand ecosystem. All payments in the Algorand community are made using the ALGO token.
What is special about Algorand?
Pure Proof-of-Stake: Algorand uses a pure proof-of-stake (PPoS) consensus protocol built on the Byzantine agreement, whereby users influence the selection of a new block proportional to their percentage of ownership in the system (number of Algos).
Immediate Transaction Finality: Algorand does not have forking so transactions are final as soon as they are confirmed in a block.
Self-Selection: All users are chosen at random, in secret, and on a continuous basis to participate in the Algorand consensus process; no authorized user or permanent committee is in charge of approving blocks in Algorand.
User Replaceability: To secure the network from hackers, participants change each round of block selection – for every round, each group of participants is random and independent of former participants.
How does Algorand solve the blockchain trilemma?
The blockchain trilemma is a collection of issues plaguing the blockchain sector. It is a circumstance in which there are three possibilities, but only two of them can be accomplished at the same time. The three possibilities in the blockchain trilemma are security, scalability, and decentralization.
Algorand is a decentralized network, like all other public blockchain platforms. Algorand, on the other hand, attempts to address the “blockchain trilemma,” tackling the three key concerns that the ecosystem is now dealing with: scalability, speed, and security.
Byzantine agreement protocol
The agreed-upon block is then confirmed and transferred via the network with the help of multiple digital signatures from the appropriate verifiers. Two blocks can never be added to the chain at the same time because only one block can have the required number of committee votes on Algorand. This means that all transactions in a properly decentralized network are executed within seconds, ensuring speed.
Two-tiered blockchain architecture
Algorand employs a two-tiered blockchain architecture to maintain speed while running complex applications. Layer 1 tier enables the creation of Algorand Standard Assets (ASA). ASA denotes new or current blockchain coins, atomic swaps, and simple Algorand smart contracts.
Layer-2 smart contracts and decentralized apps that run off-chain are supported. This technology allows the Algorand blockchain to process transactions at the same rate as large payment networks.
Staking for security
The Algorand consensus algorithm also employs a “weighted vote” approach to ensure that the validators with the most tokens at stake have the most clout in the network. This is significant because it indicates that the network is not dominated by a limited group of powerful interests.
How to buy ALGO tokens?
Investors can easily buy ALGO from Digital Asset Exchange Platforms. Below are 5 steps to buy ALGO on Tokenize Xchange.
Step 1: Select Trade on your dashboard.
Step 2: Choose the market on the right of the dashboard
For example, click on SGD Markets tab, and under the tab you will see ALGO/SGD
Step 3: Choose the type of Buying
3.1. Limit Buy
A limit order will be filled at or better than a specified price. Any quantity that is not filled rests on the continuous order book until it is filled or canceled.
Your Balance: SGD balance left in your account.
Price per ALGO: Key in the price to buy for 1 ALGO in SGD.
Amount ALGO: Key in the amount of ALGO to buy.
Time In Force:
- Good Till Cancelled (GTC): Your order will stay on the order book until they have been completely filled or until you manually cancel them.
3.2 Market Buy
A market order is an order that will be executed immediately and in full by buying or selling from the bids and asks in the order book.
Your Balance: SGD balance left in your account.
Market: Your order will be filled immediately at the best market price at the time of your order.
Amount: Key in the amount of ALGO to buy.
Sell: Once the Amount is filled correctly, you may click on Buy ALGO to confirm your Total Bid.
>>> Read more: Market, Limit, and Stop Order: What is the difference?
Step 4: Confirm your order.
You will see a confirmation window. Check all details carefully. Please see the trading commission fee here. Click “Confirm” to proceed or “Cancel” to cancel the transaction.
For example: If you would like to buy 100 ALGO, you can select Market order, enter your quantity as 0.1 and confirm your order. You will then buy 100 ALGO from the market.
After confirming the order, you will see a green notification at the top of the page indicating that your order has been successfully placed.
Step 5: Finish the order
Your order will be matched automatically. You may view your order by selecting “Orders” and “Finished Orders”.
Under “Finished Orders”, you are able to view your completed orders.
How to cancel buy order
Click on “Pending Orders” to view all of your pending orders.
Each order will show detailed information such as, Date, Market, Side, Order Type, Price, Total Units, Amount and Filled.
For orders that are still pending, you can click on “Cancel” to cancel your order.
This article has helped you answer the question What is ALGO and How to buy ALGO? What do you think about the ability to solve the Blockchain trilemma of Algorand network? Don’t hesitate to share your opinion, and don’t forget to follow Tokenize Xchange – Digital Exchange Platform for more interesting blockchain articles!
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