Algorand Price

What Is Algorand?

To increase blockchain adoption in the mainstream market, it’s essential to solve the blockchain trilemma of security, scalability and decentralization. In most cases, one of the three aspects is compromised. For example, Bitcoin is secure and decentralized, but limited in terms of scalability.

Algorand is a crypto project that aims to solve the blockchain trilemma by using a novel consensus algorithm called Pure Proof of Stake (PPoS). Fully decentralized with no principal authorities or validators, Algorand’s vision is to create an open and borderless economy where everyone has equal access to opportunities.

Thanks to Algorand's permissionless architecture, anyone can build applications and partake in transactions without giving up their privacy.

What Is ALGO?

The Algorand network is powered by ALGO, its native cryptocurrency that’s used to pay transaction fees and reward users who participate in the consensus process. The supply of ALGO is inflationary: From now until 2030, when all 10 billion tokens will be fully distributed, an increasing number of ALGO will be released into the system each year. This inflationary model incentivizes users to not only hold the token, but also participate in Algorand’s consensus process as well.

ALGO was launched through an initial coin offering (ICO) for $2.40 per token. Within days of its launch, the value of the token nearly doubled to reach an all-time high (ATH) of approximately $4 per token. Unlike proof of work (PoW) tokens, ALGO cannot be mined. Instead, it can only be obtained by participating in the platform’s consensus process, or bought on cryptocurrency exchanges.

Who Is the Founder of Algorand? 

Algorand was launched in June 2019 by Silvio Micali, a Turing Award–winning computer-scientist-cum-professor at MIT. Well-respected in the industry, Micali has over three decades of experience in cryptography and security. Not only is he one of the pioneers of cryptocurrency, he’s also the co-founder of Certichain (a verifying tool for blockchain certificates) and Verisign Labs (a provider of registry services, DNS security research and more).

The core development of Algorand is led by Algorand Inc., a team of experienced professionals from various industries including technology, finance and academia. 

The Algorand Foundation is a nonprofit organization that oversees the development of the protocol and the entire ecosystem. The foundation’s CEO is Staci Warden, who has led global teams at the Milken Institute, JP Morgan, the Nasdaq stock exchange and the U.S. Treasury Department. Other noteworthy members of the foundation include Jason Lee, founder and CEO of DailyPay, a FinTech startup; and Chief Economist Massimo Morini, a senior consultant at The World Bank and former professor of blockchain and cryptocurrencies at Swiss France Institute.

How Is ALGO Used?

The ALGO token is used to pay transaction fees on the Algorand network, with each transaction costing 0.001 ALGO. This means that if you build an app on top of the Algorand blockchain, your users will need ALGO to make transactions. 

Additionally, you’ll need at least 0.1 ALGO to activate your Algorand account. The token is also used to incentivize users to participate in the consensus process and keep the network secure.

How Does Algorand Work?

The Algorand network is based on a unique consensus protocol that achieves the goals of decentralization, security and scalability. The protocol is Byzantine fault tolerant (BFT) and makes use of a technique called cryptographic sortition to select a proposer and a committee of validators for each block. 

Proposers and validators are chosen at random from a potential pool. After being chosen, they are tasked with verifying the transactions and creating the new block. Once the block is created, it is broadcast to the network, and each node verifies the block before adding it to the chain.

Why Is ALGO Valuable?

The following characteristics make ALGO valuable:

1. Secure

Algorand features a unique consensus protocol that’s secure against malicious cyber attacks. The protocol uses digital signatures and cryptographic hashing to ensure that each block is valid.

1. Scalable

The Algorand network is designed to be scalable, and can handle thousands of TPS without sacrificing decentralization or security. 

1. Decentralized

Decentralization is a top priority for any blockchain project. Algorand is a decentralized network because any ALGO token holder can participate in the block validation process and the platform's governance through voting.

What Makes Algorand Unique?

1. Technically Strong Team

Algorand's team has a proven track record in building large-scale systems.

1. Unique PPoS Consensus Protocol

Algorand's consensus protocol is designed with security, decentralization and speed in mind. Unlike legacy blockchains, Algorand's protocol is very flexible, and allows for upgrades to be made without forking.

How Many ALGO Are in Circulation?

As of July 28, 2022, the total supply of ALGO tokens is 7.35 billion, with a circulating supply of 6.95 billion. The remaining 0.4 billion ALGO tokens are held by the Algorand Foundation, which will use these tokens to incentivize developers and users to build on top of the Algorand network and support the ecosystem.

How to Store ALGO

ALGO tokens can be stored on any wallet that supports ERC20 tokens. A few popular wallet options include Trust Wallet, MetaMask and MyEtherWallet (MEW). In February 2022, the Algorand Foundation awarded a $10 million grant to the software development company Applied Blockchain to develop the London Bridge (a trustless Algorand/Ethereum bridge), and subsequently connect both platforms. Algorand's compatibility with Ethereum will make it possible to store ALGO tokens on any wallet that supports Ether.

How to Buy ALGO

You can buy ALGO from any leading crypto exchange, including Bybit.

Buying ALGO on Bybit

To purchase ALGO on the Bybit exchange, follow these simple steps:

1. Head to Bybit’s spot trading page (Home → Trade → Spot Trading).

2. Select your trading pair on the left side of the page. You can trade ALGO with USDT (ALGO/USDT) and BTC (ALGO/BTC).

3. Choose the type of order you’d like: Limit Order, Market Order or Conditional Order.

For Limit Orders:

1. Select Limit.

2. Enter the order price.

3. Enter the number of ALGO you wish to buy.

4. Click on Buy ALGO.

5. Once you’ve confirmed your information is correct, click on Buy ALGO.

6. View your order details under Active on the web page, or Orders if you’re using the Bybit app.

For Market Orders:

1. Select Market.

2. Enter the amount of USDT/BTC you’ve paid to buy ALGO.

3. Click on Buy ALGO.

4. Once you’ve confirmed your information is correct, click on Buy ALGO.

5. View your order details under Filled.

For Conditional Orders:

1. Select Conditional.

2. Enter the trigger price.

3. Choose to execute at Market Price or Limit Price.

1. Market Price: Order price doesn’t need to be set.

2. Limit Price: Order price needs to be set.

4. According to order types:

1. Market Buy: Enter the amount of USDT/BTC you’ve paid to buy ALGO.

2. Limit Buy: Enter the number of ALGO you wish to buy.

5. Click on Buy ALGO.

6. Once you’ve confirmed your information is correct, click on Buy ALGO.

7. View your order details under Conditional on the web page, or All Orders → Current Orders on the Bybit app.

For more help, visit the Bybit spot trading guide.