Algorand is a decentralized network designed to tackle the Blockchain Trilemma of simultaneously achieving decentralization, security, and speed. The blockchain is known for its green stance and was launched by computer scientist and MIT professor Silvio Micali.
Algorand is an open-source, permissionless blockchain network on which any developer can build their DeFi apps. The blockchain platform focuses on achieving near-instant finality since it was designed to facilitate payment easily. The Algorand network processes more than 1,000 transactions per second and achieves transaction finality in less than five seconds.
Algorand uses a proof-of-stake (PoS) consensus mechanism. Additionally, all ALGO holders get validator rewards. ALGO is the native cryptocurrency of the Algorand blockchain. Algorand’s incentivization techniques and its throughput capacity are core reasons why the blockchain platform is able to handle the demands of varied use cases and global usage.
Staking is another huge part of the Algorand blockchain. Algorand can host decentralized apps and offer scalability as a public smart chain supporting staking. Decentralized application (dApp) developers and traders have been searching for alternative blockchain options as a result of rising gas costs on Ethereum. So, Algorand has gained popularity among developers as some see it as an Ethereum substitute for dApp and DeFi applications.
We are delighted to share Algo Optimizer, a service built to facilitate the compounding of staking rewards, is the latest recipient of an #Algorand Foundation Development Award. For more information on Algo Optimizer check out our announcement👉 https://t.co/hMc1l2jkW8 pic.twitter.com/nLE75SPE28
— Algorand Foundation (@AlgoFoundation) June 22, 2021
Staking is a significant part of the entire blockchain and cryptocurrency ecosystem. It involves locking up a certain number of your crypto assets to receive incentives. The ALGO token is one of the numerous tokens that can be staked to generate passive income. Stakers in DeFi are also known as validators who support the security of the blockchain network. And one of the simplest methods to earn actively from your ALGO tokens is to stake it.
How Algorand Staking Works
The Algorand blockchain is a pure proof-of-stake (PPoS) chain. This is a special technique that makes it simple to participate in the network while also preventing the use of false identities.
Interested parties must lock up their ALGO tokens in order to stake them and get passive earnings in return. Passive rewards are determined by the platform where the staking occurred. For example, you can stake ALGO on Binance or Ledger, and each has its rewards.
So, users can stake their Algorand (ALGO) tokens using the Ledger Live app. The process is pretty simple. Stakers will also receive huge benefits for their stakings, and their stake-related activities will assist in further strengthening security on the Algorand chain.
Using Ledger, stakers will allocate their ALGO tokens to specific validators. Then, they will receive passive rewards in exchange. The whole procedure is simple and doesn’t call for a lot of technological expertise.
Users must own at least one ALGO token in order to stake them on Ledger. Additionally, they must download the Ledger Live app from the Google Play store or the Apple Store. However, using the Ledger Live app is optional since the Ledger wallet can also be used with other third-party wallet apps.
Staking ALGO on Ledger can rake in as much as 7.40% APY in passive income. Currently, costs associated with staking ALGO on Ledger range from 1.7% to 4.5%.
Binance is also a great place to stake ALGO tokens. Interested parties must have a minimum of 100 ALGO tokens in order to stake ALGO. Although this may appear excessive, Binance offers significant staking payouts. At the moment, locked staking for 120 days pays 8.24%.
Longer staking periods result in higher stake rewards. More importantly, users don’t incur any additional fees since Binance does not impose staking fees.
Algorand DeFi Projects
The Algorand chain is home to several DeFi projects seeking to leverage its features. The robust community is creating a balanced ecosystem of organizations that align with Algorand’s vision for the future of finance. Some of the DeFi projects include:
- Folks Finance
- Humble DeFi
- Ferrum Network
Algorand DeFi Exchanges
Algorand’s ecosystem features a complete suite of crypto services, including decentralized exchanges. Algodex is by far the most notable DEX on Algorand. Decentralized exchanges enable users to transfer crypto assets between each other. According to data from DappRadar, Algodex has a trading volume of $244.6k and 2.11 thousand users.
ALGO Live Price
As of this writing, ALGO trades at 0.340040 with a 24-hour trading volume of $270,316,845. Algorand is up 9.2% in the last 24 hours. It also has a live market cap of $2,354,204,122. Finally, ALGO has a circulating supply of 6,927,212,924 ALGO coins and a maximum supply of 10,000,000,000 ALGO coins.
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