{"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
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 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 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 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 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
<\/figure>\n<\/div>\n\n\nThe history of Algorand<\/h3>\n\n\n\n
Who created Algorand?<\/h3>\n\n\n\n
What is the ALGO crypto used for?<\/h2>\n\n\n\n
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