Deep Dive
1. Purpose and uses
Algorand is a Layer 1 blockchain, meaning it processes transactions and applications on its own network. Developers can use it to build payment services, smart contracts, and digital assets such as tokens. Its goal is to provide infrastructure for applications that need reliable transaction processing. CoinMarketCap
2. How it works
Algorand uses Pure Proof of Stake (PPoS). In this system, eligible accounts are randomly selected to propose and vote on blocks, with selection weighted by their online ALGO stake. This avoids energy intensive mining; once a block is approved, transactions are treated as final. Algorand overview
3. What ALGO does
ALGO is the network’s native token. Users pay transaction fees in ALGO, and the token is also used in the network’s consensus process. The maximum supply is 10 billion ALGO. Algorand overview
Conclusion
Algorand is a programmable blockchain for digital transactions and applications, while ALGO pays for and helps support activity on that network. Which use case—payments, smart contracts, or digital assets—will best demonstrate its core purpose?
