Algorand (ALGO) is an open-source blockchain platform founded by MIT professor and Turing Award winner Silvio Micali. The Algorand project uses the cryptocurrency token ALGO. The project aims to expand the possible use cases for crypto by improving transaction speeds and reducing the time it takes for transactions to be deemed final on its network.
Algorand was officially launched in 2019 after Micali and Stony Brook University professor Jing Chen authored the Algorand white paper in 2017. Ongoing development work is funded by the Algorand Foundation, a Singapore-based corporation which was founded to advance the project and was allocated ALGO tokens during the initial private sale of ALGO.
The algorand platform aims to solve the three main challenges faced by modern blockchains: security, scalability, and decentralization. ALGO uses a consensus algorithm called "Pure Proof of Stake" where the network ties its security to the honesty of the majority who are incentivized as token holders to maintain the integrity and value of the network. The Algorand team explains this best on their official website.
In short, ALGO token holders can participate in the network's consensus mechanism and earn passive reward also known as a "staking yield" by staking their ALGO tokens.
You must have 1 ALGO or more to earn staking rewards. To earn staking rewards, simply hold ALGO tokens in your personal Algorand Wallet or with a custodial wallet or an exchange like Coinbase. If you hold your ALGO on an exchange or through a custodial wallet, you may earn slightly less staking rewards since your provider may take a cut of the rewards. After depositing your ALGO in one of the forementioned wallets, you will automatically begin to earn staking rewards. The ALGO staking reward yield can change over time.
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