What is the Algorand consensus algorithm?
The Algorand consensus algorithm is a blockchain-based distributed ledger technology (DLT) that enables secure, efficient, and scalable transactions.
It is a permissionless, open-source protocol that allows anyone to participate in the network and build applications on top of it. At its core, the Algorand consensus algorithm is based on a proof-of-stake (PoS) system. This means that instead of miners competing to solve complex mathematical puzzles in order to add new blocks to the chain, users stake their coins in order to become eligible for block production.
The more coins they stake, the higher their chances of being selected as a block producer. The Algorand consensus algorithm also uses Byzantine Fault Tolerance (BFT) to ensure that all nodes reach consensus on the same version of the ledger. This means that even if some nodes are malicious or fail, the network can still reach agreement on which transactions are valid and which ones should be rejected.
Finally, Algorand uses cryptographic sortition algorithms to randomly select block producers from among those who have staked coins. This ensures that no single user or group can control the network and helps prevent centralization of power.
