Algorand is a self-sustaining, decentralized, open source blockchain network that supports a wide range of applications. The most important area of its ecosystem is the DeFi sector, their goal is to connect traditional and decentralized finance.
It was created to speed up transactions and improve efficiency in response to the slow transaction times of Bitcoin and other blockchains. The goals were lower transaction fees, scalability, increased speed, and the avoidance of high-energy mining. As of December 2020, it handled nearly 1 million transactions per day, thanks to the fact that transactions are finalized in a fraction of a second.
It works based on a pure-proof-of-stake protocol, the system allows all stakeholders to participate in block production, in exchange for which they receive a reward. Rewards from each block are distributed proportionally among ALGO owners. ALGO is the network's own token. Like other systems, ALGO is used for payments within the ecosystem.
In February 2022, a development that provides compatibility with the Ethereum blockchain was announced.