Algorand $ALGO Wiki: Coin History, Techstack, and Crypto News

Algorand is an open source proof of stake cryptocurrency protocol based on blockchain. The native currency is known as ALGO.

History of Algorand

Algorand is both a company and foundation founded in 2017 by Silvio Micali. He co-authored the Algorand white paper with Jing Chen who was his PHD student and an assistant professor in computer science at Stony Brook University at the time.

The foundation is in charge of managing cryptographic research primitives, ecosystem growth, on-chain governance and decentralization within the Algorand network as well as the Algorand ecosystem growth. The development of the Algorand protocol is done by Algorand Inc, a corporation based in Boston.

The test network for the protocol was launched in April 2019 to the public. The main Algorand network was launched in June 2019.  In August 2019, the native token for Algorand, the ALGO, became one of the fastest tokens to get listed on Coinbase.

The platform is the world's first carbon-negative blockchain and as of April 2022 has implemented the first smart contract to counterbalance carbon emissions by donating a portion of each transaction to offset carbon emissions and became FIFA’s official blockchain partner in May 2022.

Biggest Claim to Fame

Algorand is the first crypto in the world that has solved the blockchain trilemma. The blockchain trilemma is a widely held belief among blockchain providers and users that claim that decentralized networks can provide only two of three benefits at any given time between decentralization, scalability and security. Algorand has done this by making use of its unique proof of stake consensus algorithm.

There are no outside entities that work on Algorand as there are in other cryptocurrency platforms like miners in Bitcoin. The Algorand system is truly distributed.

Algorand allows developers to create new tokens on the platform or to transfer existing tokens to the platform's ecosystem.

Due to Algorands unique protocol design, any rewards paid to validators that produce blocks are distributed among users that hold the ALGO coin rather than only those who produce the blocks. The reward distribution is constant in order to encourage users to join the company's staking platform and speed up the path to decentralization.

Algorand is sustainable. The platform has worked hard to promote and maintain its carbon neutrality at all levels. They have pulled in partners from different industries both due to the effort they have put into being carbon neutral and those who want to help them maintain carbon neutrality.

Criticism of Algorand

Algorand’s block production system lacks the mechanism to punish dishonest behavior on the network. This is due to the fact that the network node can’t have its staked balance lowered for proposing a bad block; which means every time it happens, the network enters recovery mode and carries on. It allows for increased speed but at a heavy cost.

The Algorand system cannot support a fork on the blockchain. All participant nodes on the network must agree to an update on the blockchain protocol or the entire Algorand system may block or slow their efficiency. This makes the Algorand system inflexible to diverging network node preferences and any leniency that may be needed in any blockchain platform.

Algorand Team

Algorand Inc was formed by computer scientist and Massachusetts Institute of Technology (MIT)  professor Silvio Micali. He was the recipient of the 2012 Turing Award for his work in making Cryptography a more exact science.

Jing Chen is a former assistant professor in computer science at Stony Brook University. She took a computer science PHD at MIT where her advisor was Professor Silvio Micali. She is the chief scientist and head of theory research at Algorand Inc.

Silvio Micali, Jing Cheng, and an internationally recognized team of researchers, cryptographers, mathematicians, and economists worked together on the foundation in order to ensure true decentralization, security, and scaling of digital currency.

In Conclusion

Algorand has paved the way for crypto by being the first to solve the Crypto trilemma and proving that it can be done. They have opened the path to innovation and have proved that crypto can evolve and biome better than it has been.

By being among the first carbon neutral forms of crypto, they have proven there is a sustainable and environmentally conscious way to produce and use crypto without having to worry about how badly it is affecting the environment because it is not doing so.

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