{"id":12349,"date":"2025-07-15T10:29:39","date_gmt":"2025-07-15T09:29:39","guid":{"rendered":"https:\/\/investx.fr\/en\/?p=12349"},"modified":"2025-07-15T14:15:50","modified_gmt":"2025-07-15T13:15:50","slug":"algorand-algo-explained","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/learn\/crypto\/algorand\/","title":{"rendered":"Algorand (ALGO): Explained – How It Works and Its Significance in 2026"},"content":{"rendered":"\n

What is Algorand (ALGO)?<\/h2>\n\n\n\n

Algorand<\/strong> is a Layer 1<\/strong> blockchain designed to definitively solve the blockchain <\/a>trilemma<\/strong> identified by Vitalik Buterin. This decentralized infrastructure uses a unique consensus mechanism called Pure Proof of Stake<\/strong> (PPoS). This allows it to simultaneously achieve maximum security, exceptional scalability, and true decentralization.<\/p>\n\n\n\n

The uniqueness of Algorand<\/strong> lies in its ability to offer instant finality<\/strong> for transactions. This eliminates the risks of block reorganization that affect other blockchains. This technology can process more than 6,000 transactions per second<\/strong> with fees lower than $0.001<\/strong>. Algorand is thus positioned as one of the most efficient solutions in the market.<\/p>\n\n\n\n

The Algorand<\/strong> ecosystem is also distinguished by its exceptional environmental commitment. The blockchain not only displays carbon neutrality<\/strong> but goes further by maintaining a negative carbon footprint<\/strong>. This is primarily due to its partnership with ClimateTrade and investments in carbon offset projects.<\/p>\n\n\n

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\"climate<\/figure>\n<\/div>\n\n\n

The history of Algorand<\/h3>\n\n\n\n

It begins in 2017<\/strong> with the vision of Professor Silvio Micali<\/strong> from the Massachusetts Institute of Technology (MIT). This world-renowned cryptographer, winner of the Turing Award in 2012<\/strong>, spent several years developing the theoretical foundations of a blockchain capable of overcoming the technical limitations of existing systems.<\/p>\n\n\n\n

The development of Algorand<\/strong> accelerated in 2018<\/strong> with the creation of Algorand Inc. and the recruitment of a team of top engineers. The Algorand Foundation<\/strong> was established in 2019<\/strong> as a non-profit organization tasked with overseeing ecosystem development, governance, and research initiatives.<\/p>\n\n\n\n

Algorand’s mainnet<\/strong> was launched in June 2019<\/strong>, marking the culmination of more than two years of intensive development. Since its launch, the blockchain has undergone several major updates, notably the introduction of smart contracts<\/strong> in 2021 and continuous performance improvements with the Dynamic Lambda<\/strong> update in 2025.<\/p>\n\n\n\n

Who created Algorand?<\/h3>\n\n\n\n

Algorand<\/strong> was created by Silvio Micali<\/strong>, a legendary figure in modern cryptography and a professor at MIT since 1983. Micali is recognized as one of the pioneers of theoretical cryptography. He co-invented fundamental concepts such as zero-knowledge proofs<\/strong> and digital signatures<\/strong>.<\/p>\n\n\n\n

Silvio Micali<\/strong> received the Turing Award in 2012<\/strong>, considered the “Nobel Prize of computing,” for his revolutionary contributions to cryptography. His work laid the theoretical foundations for many technologies used today in computer security and cryptocurrencies<\/a>.<\/p>\n\n\n\n

The Algorand<\/strong> team quickly expanded with experts from leading academic institutions and technology companies. This concentration of talent allowed the development of a technically superior blockchain, validated by the international scientific community.<\/p>\n\n\n\n

What is the ALGO crypto used for?<\/h2>\n\n\n\n

ALGO<\/strong> is the native token of the Algorand network, fulfilling several essential functions that ensure proper operation and security. Unlike speculative tokens, ALGO<\/strong> has real and multiple utility that makes it a fundamental digital asset.<\/p>\n\n\n\n

The first function of ALGO<\/strong> concerns the payment of transaction fees<\/strong> on the network. Each interaction with the blockchain requires the payment of minimal fees in ALGO<\/strong>. This ensures network security while maintaining extremely low usage costs, typically less than $0.001<\/strong> per transaction.<\/p>\n\n\n

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\"ALGO<\/figure>\n<\/div>\n\n\n

Staking<\/strong> represents the second major use of ALGO<\/strong>. Holders can participate in the Pure Proof of Stake<\/strong> consensus by delegating their tokens to participation nodes. They receive rewards proportional to their stake. This mechanism secures the blockchain while offering passive income to investors.<\/p>\n\n\n\n

Decentralized governance<\/strong> constitutes the third pillar of ALGO’s<\/strong> utility. Holders can participate in important decisions regarding protocol evolution, technical updates, and network parameters. Algorand’s governance system allows democratic participation in strategic decisions.<\/p>\n\n\n\n

The Algorand<\/strong> ecosystem is experiencing growing adoption with the recent launch of staking on Binance <\/a>and Crypto.com<\/strong> in July 2025. This facilitates access to staking rewards for a wider audience. The integration of Wormhole<\/strong> also improves multi-chain interoperability, strengthening the utility of the ALGO<\/strong> token.<\/p>\n\n\n\n

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Trade your first ALGO tokens!<\/a><\/div>\n<\/div>\n\n\n\n

How does the Algorand network work?<\/h2>\n\n\n\n

The Algorand<\/strong> network relies on a revolutionary technical architecture. It combines several innovations to achieve exceptional performance while maintaining maximum security and decentralization.<\/p>\n\n\n\n

A unique consensus<\/h3>\n\n\n\n

The Pure Proof of Stake<\/strong> (PPoS) consensus is Algorand’s most remarkable innovation. Unlike traditional PoS systems, PPoS uses a verifiable random function<\/strong> (VRF) to securely select validators for each block. This approach eliminates risks of centralization and ensures fair participation by all ALGO holders.<\/p>\n\n\n\n

Algorand’s Byzantine consensus algorithm<\/strong> enables consensus to be reached even in the presence of malicious nodes. At least two-thirds of participants<\/strong> must remain honest. This Byzantine fault tolerance guarantees network security under adverse conditions.<\/p>\n\n\n\n

Algorand’s instant finality<\/strong> architecture eliminates the risks of block reorganization that affect other blockchains. Once a transaction is confirmed, it immediately and definitively becomes recorded in the blockchain. This offers security comparable to traditional payment systems.<\/p>\n\n\n

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\"algorand<\/figure>\n<\/div>\n\n\n

The two types of nodes<\/h3>\n\n\n\n

The network uses two types of nodes: relay nodes<\/strong> that maintain global network connectivity with high-bandwidth connections, and participation nodes<\/strong> that hold voting keys and participate in consensus. This two-layer architecture optimizes both performance and decentralization.<\/p>\n\n\n\n

Advantages and disadvantages of Algorand (ALGO)<\/h2>\n\n\n\n

Let’s now look at the strengths and areas for improvement of the Algorand network.<\/p>\n\n\n\n

The 5 main advantages of Algorand<\/h3>\n\n\n\n

1. Exceptional technical performance<\/strong>: With more than 6,000 transactions per second<\/strong>, instant finality<\/strong>, and fees lower than $0.001<\/strong>, Algorand offers performance comparable to traditional payment systems while maintaining blockchain decentralization.<\/p>\n\n\n\n

2. Advanced cryptographic security<\/strong>: Created by Turing Award winner Silvio Micali<\/strong>, Algorand integrates the latest advances in cryptography, including quantum resistance<\/strong> and zero-knowledge proofs<\/strong>, positioning the blockchain for the post-quantum era.<\/p>\n\n\n\n

3. Environmental sustainability<\/strong>: Algorand maintains a negative carbon footprint<\/strong> thanks to its ultra-efficient Pure Proof of Stake<\/strong> consensus and investments in carbon offset projects via ClimateTrade, addressing growing ESG concerns.<\/p>\n\n\n\n

4. Resolution of the blockchain trilemma<\/strong>: Unlike other blockchains that sacrifice one aspect of the trilemma, Algorand simultaneously achieves maximum security<\/strong>, high scalability<\/strong>, and true decentralization<\/strong> thanks to its unique architecture.<\/p>\n\n\n\n

5. Growing institutional ecosystem<\/strong>: The launch of staking on Binance and Crypto.com<\/strong> in 2025, Wormhole<\/strong> integration for interoperability, and adoption by financial institutions demonstrate the growing maturity of the ecosystem.<\/p>\n\n\n\n

The 5 main disadvantages of Algorand<\/h3>\n\n\n\n

1. Limited adoption compared to leaders<\/strong>: Despite its technical advantages, Algorand struggles to compete with Ethereum’s adoption or Solana’s popularity. The DeFi ecosystem remains relatively modest compared to competing blockchains.<\/p>\n\n\n\n

2. Technical complexity<\/strong>: Algorand’s advanced cryptographic innovations, while offering advantages, can create a barrier to entry for developers accustomed to simpler environments like Ethereum.<\/p>\n\n\n\n

3. Token concentration and governance<\/strong>: The Algorand Foundation<\/strong> holds a significant share of ALGO tokens, raising questions about the real decentralization of governance and decision-making power concentrated in the hands of the founding organization.<\/p>\n\n\n\n

4. Disappointing price performance<\/strong>: Despite its technical advantages, ALGO<\/strong> has experienced disappointing price performance over the past 2 years, reflecting a lack of market recognition for its innovations.<\/p>\n\n\n\n

5. Intense competition<\/strong>: The Layer 1 blockchain market is saturated with established competitors. Algorand must constantly prove its added value against more popular but technically inferior solutions.<\/p>\n\n\n\n

Algorand (ALGO) price and predictions<\/h2>\n\n\n\n

The recent price evolution<\/strong> of ALGO shows modest performance in 2025. The token is currently trading around $0.27<\/strong>, after nevertheless experiencing a nice increase of more than 70% in recent days.<\/p>\n\n\n

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\"ALGO
Source: CoinMarketCap<\/figcaption><\/figure>\n<\/div>\n\n\n

Algorand predictions for 2025<\/h3>\n\n\n\n

Price predictions for 2025<\/strong> vary considerably according to analysts. CCN anticipates a very wide range of $0.12 to $0.66<\/strong> for 2025, while Cryptopolitan forecasts a maximum of $0.33<\/strong> by the end of 2025. Long Forecast suggests an average price of $0.23<\/strong> for July 2025.<\/p>\n\n\n\n

More optimistic forecasts from Coinpedia indicate a potential of $0.90<\/strong> by the end of 2025, based on growing adoption and technical developments. Digital Coin Price mentions that ALGO reached $0.49<\/strong> in January 2025 before falling back.<\/p>\n\n\n\n

Factors influencing<\/strong> ALGO’s price include the recent launch of staking<\/strong> on major exchanges, Wormhole<\/strong> integration for multi-chain interoperability, and the Dynamic Lambda<\/strong> update that improves network performance. However, Tether’s decision to suspend USDT on Algorand<\/strong> in September 2025 could create temporary downward pressure.<\/p>\n\n\n\n

Algorand’s on-chain activity<\/strong> shows encouraging signals with growing adoption of 62%<\/strong> according to some metrics, and the continuous development of decentralized applications on the blockchain. Instant finality<\/strong> and ultra-low fees<\/strong> continue to attract new projects.<\/p>\n\n\n\n

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Invest in the Algorand token!<\/a><\/div>\n<\/div>\n\n\n\n

Important moments in Algorand’s history<\/h2>\n\n\n\n

2017: Theoretical conception<\/strong> by Silvio Micali<\/strong> at MIT. The Turing Award winner begins developing the cryptographic foundations of Pure Proof of Stake consensus.<\/p>\n\n\n\n

2018: Creation of Algorand Inc.<\/strong> and beginning of practical blockchain development. The team expands with experts in cryptography and blockchain engineering.<\/p>\n\n\n\n

2019: Launch of the Algorand Foundation<\/strong> and June 2019: Mainnet launch<\/strong>. The Algorand blockchain becomes operational with its basic functionalities.<\/p>\n\n\n\n

2021: Introduction of smart contracts<\/strong> and expansion of the DeFi ecosystem. Algorand becomes a complete platform for decentralized applications.<\/p>\n\n\n\n

2022: ClimateTrade partnership<\/strong> for carbon neutrality. Algorand becomes the first blockchain with a negative carbon footprint.<\/p>\n\n\n\n

Late 2022 – early 2024<\/strong>: Algorand and its AGLO token undergo the bear market. The price drops from almost $3<\/strong> to $0.1<\/strong>.<\/p>\n\n\n\n

July 2025: Launch of staking on Binance and Crypto.com<\/strong>, facilitating access to staking rewards for a wider audience.<\/p>\n\n\n\n

July 2025: Wormhole integration<\/strong> for native multi-chain transfers, improving Algorand’s interoperability with other blockchains.<\/p>\n\n\n\n

September 2025: Upcoming suspension of USDT<\/strong> on Algorand, marking a challenge for the blockchain’s stablecoin ecosystem.<\/p>\n\n\n\n

How and where to buy Algorand (ALGO)?<\/h2>\n\n\n\n

Acquiring ALGO<\/strong> tokens is an essential step for those who wish to invest in the project, participate in its governance, or use applications in its ecosystem. Due to its growing market capitalization and popularity, the ALGO token is available on the majority of centralized exchange platforms<\/a> (CEX)<\/strong>.<\/p>\n\n\n\n

These platforms allow you to buy ALGO directly with euros or dollars via different payment methods<\/strong> (bank card, wire transfer). Here is our ranking<\/strong> of the best platforms in 2025:<\/p>\n\n\n\n

How to buy ALGO on Bitget? Mini tutorial<\/h3>\n\n\n\n

Here’s how to buy ALGO in 5 steps on the best platform in our ranking.<\/p>\n\n\n

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  1. Create an account on Bitget<\/strong>:<\/li>\n<\/ol>\n\n\n\n