Scalable decentralized pure Proof-of-Stake. Will Algorand explode in 2021?

Algorand is a project aimed at expanding the possible use cases of cryptocurrency by increasing the speed of transactions. The official launch of Algorand took place in 2019.

It is noteworthy that the internal ALGO token is introduced into the system with each new block – and goes to all currency holders. Algorand allows users to create smart contracts and tokens that can represent new or existing assets.

Algorand Technology

Algorand uses Pure Proof of Stake where validators are not rewarded or in danger of being suspended. For the minority, it becomes impossible to deceive the system, and irrational for the majority, since this would devalue their possessions. There is also no blocking of tokens, so the user has their own tokens at all times. Blocks are created in two stages:

1. when one token is chosen at random, and its owner offers the next block;

2. Then 1000 random tokens are selected, their owners approve the block proposed by the first user.

These stages are supported by a basic protocol called the Binary Byzantine Agreement or Byzantine BA (“Star”) agreement, which includes the following enhancements:

• Cryptographic Sorting (Self-Selection) To prevent an attacker from targeting committee members, BA uses Verifiable Random Functions (VRF) to randomly select committee members in a private and non-interactive way.

• Substitution of participants. BA reduces the likelihood of a committee member being attacked by an attacker by requiring committee members to speak only once, thus losing meaning to BA.

To keep abreast of the most relevant changes and understand where the market is heading, it is important to track the dynamics of the exchange rate every month. At the same time, the price at the beginning and at the end of the month may differ significantly.

Algorand price prediction 2021

Algorand hasn’t found a serious bottom since highs traded at $ 0.76 in August. Investors seem to be used to the pain of breaking one support after another. However, the token began to show signs of a significant reversal. On the other hand, the bulls held at $ 0.23 despite a $ 0.24 drop.

Algorithm and eyes on the upcoming $ 0.3 reversal

At time of writing, ALGO is trading at $ 0.23 after falling sharply from $ 0.26. Massive losses on Tuesday affected the entire cryptocurrency market. They were triggered by news from the Securities and Futures Commission (SFC) in Hong Kong, which began regulating cryptocurrency exchanges.

Bitcoin fell below $ 13,500, widening the gap from $ 14,000. Ethereum re-tested support at $ 370, while Ripple dipped below preliminary support at $ 0.23. Most of the major crypto assets recorded losses between 3% and 7% per day.

Many cryptocurrencies seek to create artificial incentives to control the user’s online behavior. ALGO cryptocurrency acts simply and openly – the user decides for himself what to do with the coin and how much it will cost. Leading developers – holders of a degree in cryptography, a large-scale update is being prepared, the number of users is growing – all this has a positive impact on the ALGO token.