What Is Algorand?

Last Modified:
June 3, 2024

Algorand is an open-source blockchain platform designed to process transactions quickly and securely. It is managed by the Algorand Foundation, and its native cryptocurrency is ALGO.

Created in 2017, the network uses a unique consensus mechanism called Pure Proof-of-Stake (PPoS). Algorand is a fast, efficient, and low-cost alternative to blockchains like Ethereum which take longer to process transactions and charge high gas fees. It is managed by the Algorand Foundation.

What is the Algorand Foundation?

The Algorand Foundation is a non-profit organization that oversees the Algorand protocol and ecosystem. Its goals are to:

  • Promote the Algorand blockchain 
  • Support research and development
  • Encourage decentralized governance
  • Grow a healthy ecosystem of applications and partnerships

The Foundation helps ensure that Algorand continues to adhere to its principles of scalability, security, and decentralization.

What are the benefits of using Algorand?

Eco-Friendly Approach

Algorand is considered one of the most environmentally sustainable blockchains. Aside from using a consensus mechanism that does not require high electric consumption, it also buys carbon credits to offset more carbon emissions than it generates. In fact, Algorand has been certified carbon-negative since 2021. 

Security and Efficiency.

Through its Pure Proof-of-Stake (PoS) consensus mechanism, Algorand can securely process thousands of transactions per second at a low cost.

Incentives for Honest Participation

Validators who behave dishonestly risk losing the ability to participate in the network, while those who do their job well earn rewards with every block validated.

Community-Driven Governance

All ALGO holders have the chance to vote on the platform’s future directions.

With its innovative technology and sustainable design, Algorand provides an ideal platform for building efficient and secure decentralized applications.

To learn more about other blockchains and cryptocurrencies, check out our other short guides!