Algorand is an open source, decentralized blockchain network that utilizes a two-tier structure and a unique variant of the proof-of-stake (PoS) consensus mechanism to speed up transactions and achieve finality. Algorand's block rewards are distributed to all ALGO token holders, providing all ALGO holders with the opportunity to receive the rewards, not just the block producers.

Algorand's vision is to be a decentralized financial public chain that incentiviizes miners to maintain network security by moving many functions down the chain to improve performance, with pure Proof of interest (PPoS) consensus agreements to ensure that any validator receives pledge rewards.

Decentralized, scalable and secure public chains have always been expected by the blockchain industry.

Unique two-tier blockchain structure and unique consensus mechanism (pPoS).

Algorand has a unique two-tier blockchain structure. The base layer supports smart contracts, asset creation, and atomic exchange between assets. All of these processes take place at layer 1 of the Algorand blockchain, which helps ensure security and compatibility. At the first layer of the Algorand network, platforms and users can create ASA representing new or existing tokens on the Algorand blockchain. This is similar to how erC-20 tokens work on the Ethereum network. In terms of security, simple smart contracts on the Algorand platform execute as layer 1 Algorand Smart Contracts (ASC1), which means they maintain the same level of security as the consensus protocol itself. The second layer of Algorand is reserved for more complex smart contract and dApp development. It is this bifurcation of the network between layer 1 and Layer 2 that allows Algorand to process transactions so efficiently. With more complex smart contracts occurring off the chain, simple transactions can be processed more quickly at layer 1 without getting bogged down by larger, more complex smart contracts.

Pledge and pay transaction costs.

Algorand uses a unique variant of proof of interest called Pure Proof of interest (PPoS). PPoS is a highly democratic PoS consensus mechanism that requires a low minimum bet to participate and protect the network, requiring only 1 ALGO token to participate. By comparison: Ethereum 2.0 requires a minimum of 32 Ethereum (ETH) shares, an amount that sets a higher barrier to entry for users. Conversely, lower minimum mortgage requirements may adversely affect network security, as network participants may be less willing to engage in optimal behavior when they do not have a large amount of value mortgaged on the network.

Algorand is designed to reduce transaction costs and do not require energy-intensive mining processes, such as bitcoin's, because it is based on permissionless pure proof of stake (PoS) consensus.

Thanks to its consensus algorithm and other technological innovations, Algorand has the following features: 1. No forks and instant transaction confirmation: Algorand blockchain does not fork and every block added to the blockchain is considered confirmed. This means that all transactions can be confirmed within a block instead of having to wait several or even dozens of block heights. The current average block time on the Algorand main network is around four seconds, which means a transaction takes only four seconds to be confirmed. 2. Algorand Standard Asset (ASA) Algorand also supports the issuance and trading of user-defined assets like ERC20, but instead of requiring users to deploy third-party smart contracts to do this, Algorand natively supports token issuance, where users can easily create a new asset by sending an "asset creation transaction." The asset is also traded in exactly the same way as the original ALGO token. 3. Native atomic trading: Algorand supports the function of atomic trading. Multiple transactions can be packaged and linked together to achieve atomicity without using hash locks and other third-party contract functions, thus improving ease of use and security. 4. Custom logical accounts: Algorand does not currently offer the complete smart contract functionality of Turing, but sacrifices flexibility in exchange for greater security and convenience; In its place is the functionality of logical accounts. Developers can implement smart contract-like functions by writing a piece of logic in TEAL that dictates rules for logical accounts.

ALGO coins have a hard supply cap of $10 billion and will be issued as follows: 3 billion ALGO coins will be issued in the first five years (including an initial auction of 25 million ALGO tokens). It is expected that 1.75 billion ALGO will be allocated over time as a reward for participating nodes. 2.5 billion ALGO will be allocated to relay nodes over time. 2.5 billion ALGO is reserved for Algorand Foundation and Algorand Inc. 250 million ALGO will be allocated to end user grants.

1,000 transactions per second (TPS), and 5 seconds of certainty.

ALGO tokens as part of Algorand's unique protocol design, the rewards paid to the verifier's production blocks are distributed and distributed among all ALGO token holders, rather than just to the block producers. That means all ALGO token holders could earn an annual return (APY) of about 7.5% through February 2021. Rewards are distributed approximately every 10 minutes and are designed to encourage users to join the Algorand pledge platform and accelerate the path to decentralization. To make the process even easier, instead of actually "mortgaging" tokens during block production and validation, users can simply save ALGO in an unmanaged wallet or exchange to receive earned rewards. In this sense, Algorand has achieved near-automation, as pledgers can passively hold ALGO while supporting the network.

The Algorand Foundation currently holds a large amount of ALGO, which critics say makes the deal centralised in the short term.

Long-term, steady growth is incorporated into Algorand's tokenomics, but this is largely dependent on growing practical demand for DApps and transactions. The strength of the team and the potential value of the ecosystem are compelling.

Algorand, launched in 2019, is a relatively young protocol. As a newcomer to the blockchain space, Algorand has proven to be a powerful platform with strong technological innovations, developer support, and real-world use cases. Algorand's highly fair coin reward structure and consensus mechanism is creating a new standard for blockchain, and expectations for Algorand's efforts are growing rapidly.