Deep Dive
1. Purpose and uses
Algorand is a Layer 1 blockchain, meaning applications and transactions can run directly on its own network. Developers can build smart contracts, payments, and digital assets such as tokens and NFTs on it. (CoinMarketCap)
2. How it works
Algorand uses Pure Proof of Stake: the protocol randomly selects participants, weighted by ALGO, to propose and confirm blocks. This avoids energy intensive mining. (Algorand overview)
In August 2026, native Falcon 1024 accounts were enabled, allowing transactions to use a signature scheme designed to resist potential future quantum computer attacks. (CoinMarketCap Community)
3. ALGO’s role
ALGO pays transaction fees and is used in the network’s consensus process. Its maximum supply is 10 billion tokens; the Algorand Foundation paused plans to change that cap in November 2026. (Algorand overview, TokenPost)
Conclusion
Algorand is a blockchain platform for building and using digital applications and assets, while ALGO helps pay for and secure activity on the network. How effectively can its technology support useful everyday applications?
