What is Algorand?
Algorand is an open source, pure proof of stake blockchain protocol. It requires a negligible amount of computation, and generates a transaction history with low “fork” probability. This protocol aims to remove technological barriers: decentralization, scalability, and security, that have undermined the acceptance of mainstream blockchain. Algorand implements a new Byzantine Agreement (BA) protocol to reach consensus among users on the next set of transactions. To scale the consensus to many users, Algorand uses a novel mechanism based on Verifiable Random Functions. There are two types of smart contracts on the Algorand network: Layer 1 on-chain, and Layer 2 off-chain, by moving the most computationally intensive smart contracts off-chain, Algorand frees up space on the network for simple transactions, thus reducing congestion to improve processing speed.
