What is Algorand
Updated: Dec 17, 2021
In this video, we learn more about Algorand, which was designed to be a faster blockchain than Ethereum and that gives Pure Proof of Stake rewards to all Algo token holders. Unlike normal Proof of Stake which only rewards a few, all Algo holders get a 4-6% APR per year just for holding the coin.
As an alternative to the high gas fees on Ethereum, Algorand has been chosen as the platform for the Marshall Islands to run their CBDC (Central Bank Digital Currency) as well as other countries considering this too.
Additionally, Algorand has a 2-layer scaling solution with the more complex solutions being run off the main chain. In the case of other protocols, these are done via side-chains but in Algorands case, it uses other nodes already running on the Algorand system which means built-in scaling.
How Algorand is setup is also interesting where it has an Algorand Foundation to support adoption and education of the blockchain and Algorand Inc is more about enterprise adoption.
Algorand is also environmentally friendly as it not only creates low-carbon emissions with its proof of stake model but, it also contributes back to environmental causes via Algorand Inc.
In terms of tokenomics, Algorand is considered inflationary given new coins are minted and given to stakers and there is a maximum supply of 10 billion coins.
Whiteboard Crypto then goes through the way that governance works in Algorand. Any Algo holder can vote and get rewards for doing so but to become able to do this, you need to commit your coins for a 90 day voting period.