How does Algorand work?

Algorand is a blockchain-based distributed ledger technology (DLT) platform that uses a consensus algorithm called Pure Proof of Stake (PPoS).

The Algorand network is powered by a native cryptocurrency called Algo. The Algorand consensus algorithm is designed to provide fast, secure, and reliable transactions. It works by randomly selecting a set of validators from the network to form a committee.

This committee then works together to validate transactions and create new blocks on the blockchain. The process begins with the selection of validators who are chosen based on their stake in the network. The more Algo tokens they hold, the higher their chances of being selected as a validator.

Once selected, these validators must reach consensus on which transactions should be included in the next block. This process is known as “blockchain voting” and it ensures that all transactions are properly validated before being added to the blockchain. Once consensus has been reached, the block is then broadcasted to all nodes in the network for verification.

If all nodes agree that the block is valid, it will be added to the blockchain and become part of an immutable record of all past transactions. In addition to providing fast and secure transaction processing, Algorand also offers users access to smart contracts and decentralized applications (dApps). These dApps can be used for various purposes such as creating digital assets or managing financial services like loans or investments.

Overall, Algorand provides users with an efficient way to securely transfer value without having to rely on third-party intermediaries or centralized authorities. By using its unique consensus algorithm and decentralized applications, Algorand offers users an efficient way to securely transfer value without having to rely on third-party intermediaries or centralized authorities.