Key Data

• Trading Name: Algorand (ALGO)
• Legal Entity: 
• Activities: Blockchain technology company
• Location: Singapore
• Regulations: not necessary 
• Key People:Silvio Micali/Steve Kokinos/W. Sean Ford/Keli Callaghan/Sergey Gorbunov
• Latest news: Algorand
• Latest update: July 22, 2024

Algorand (ALGO) is an blockchain platform and cryptocurrency that aims to enable fast, secure and scalable transactions. The platform was founded in 2019 by renowned cryptographer and MIT professor Silvio Micali. Algorand relies on a unique consensus mechanism called “Pure Proof of Stake” (PPoS), which enables transaction speeds of up to 1,000 transactions per second (TPS) and a transaction finality of less than five seconds. These features make Algorand an ideal platform for decentralized applications (dApps) and digital assets.

Offering

The Algorand blockchain network features its native token, ALGO, which is traded on major exchanges such as Binance, KuCoin, and CoinEx. Recently, Algorand made its source code publicly available, showcasing its well-written structure.

Algorand uses a unique consensus protocol called Pure Proof-Of-Stake (PPoS). This protocol enables the network to reach consensus without a central authority and tolerate malicious actors, provided the majority of the stake remains honest. Each user’s influence on block selection is proportional to their stake in ALGO tokens. PPoS offers benefits like decentralization, low energy consumption, and speed, and is considered more decentralized and secure than Delegated Proof-Of-Stake (DPoS) because it does not delegate voting power to a limited set of users. Instead, it randomly selects a small group of block verifiers, ensuring the blockchain never forks, thus maintaining speed and stability.

The network features two types of nodes: relay nodes, which enhance network efficiency while maintaining decentralization and security, and participation nodes, which handle voting.

Security is a top priority for Algorand. The consensus protocol is designed to resist malicious actions by randomly and secretly selecting users to participate in block certification. The identity of the next validator remains unknown until the next block is generated, which secures the information. Each step and round involve different participants, protecting the network against attackers. Ensuring the blockchain never forks further enhances security.

Algorand is also developing innovative technologies, such as self-validating transactions, which aim to separate consensus from storage. Users can verify payments by maintaining the balance of each public key in the system.

Key People

• Silvio Micali, Algorand Founder, the world-class expert in cryptography, secure protocols, and pseudo-random generation. Silvio’s cryptography contribution is huge. He is the co-inventor of probabilistic encryption, Zero-Knowledge Proofs, Verifiable Random Functions, and other protocols. At Algorand, Silvio oversees all research, security, and crypto finance.
• Steve Kokinos, CEO. Steve is an experienced entrepreneur. Before Algorand, Steve was the CEO of Fuze, global enterprise communications platform.
• W. Sean Ford, COO. Before Algorand, he was the CMO at LogMeIn. Another Sean’s executive roles included CMO and COO of Zmags, CMO of Syncsort, and others.
• Keli Callaghan, Head of Marketing. Previously, Keli had a position at Avid, where she had a wast set of responsibilities, including global customer engagement strategies, field marketing teams, and the collaborative marketing partnership with Microsoft.
• Sergey Gorbunov, Head of Cryptography. Sergey is an Assistant Professor at the University of Waterloo. His research interests range from foundational cryptography to design of secure large scale systems, computer networks, protocols, and blockchains. His prize-winning dissertation was on building advanced cryptographic protocols using lattice-based cryptography.

Security

The Algorand blockchain is secured through the use of Pure Proof-of-Stake, where only users with the majority of ALGO can attempt to perform a malicious activity. The network automates tolerance to multiple malicious users as long as the majority of users are honest and work in favor of the Algorand blockchain.

Also, if a malicious user had the majority of ALGO, the system would be compromised and thus the value of ALGO would degrade, jeopardizing the value of the malicious user’s funds.

Governance

Algorand employs a decentralized governance model where ALGO token holders can participate in decision-making processes regarding the platform’s future developments.

Reputation and Challenges

Algorand is highly regarded for its technological advancements and contributions to the blockchain space. However, like any rapidly evolving technology, it faces challenges such as staying ahead of regulatory changes and ensuring widespread adoption amidst growing competition.

Regulation

Algorand is committed to regulatory compliance, partnering with Chainalysis to integrate anti-money laundering (AML) transaction monitoring. Its technology includes features for compliance with KYC and AML protocols, such as asset freezing and clawback capabilities. The foundation has hired experienced compliance professionals, ensuring robust adherence to regulatory standards. This proactive approach highlights Algorand’s dedication to operating within legal frameworks and maintaining a secure, transparent blockchain environment.

Funding

Based on available data from CB Insights, Algorand has raised $69 million over four funding rounds, with the latest being a Series B round that secured $3 million in January 2022. The company is recognized for its robust blockchain technology aimed at providing a secure and decentralized digital currency and transaction platform. Algorand’s innovative approach and substantial financial backing position it as a significant player in the blockchain industry.

Customer Review

G2: 4 Stars with 2 Reviews

Conclusion and Rating

We rate Algorand as Green, as all necessary information is available and we could not find anything negative about them. The company has taken all required regulatory measures and demonstrates a strong scientific and technological foundation. Algorand fully meets our standards for transparency, security, and compliance.