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Know What Algorand Network has to do with the increasing value of ALGO token
Algorand is a cryptocurrency blockchain that supports a variety of applications being an independent and decentralized network. The network aims to create the technology for accelerating convergence between traditional finance and decentralization by developing next-generation financial products and protocols. Founded by Silvio Micali, Alrorand seeks to improve the efficiency of blockchain by speeding up the transactions. The network is based on a permissionless proof-of-stake protocol, which helps it achieve a significantly lower transaction fee.
The platform solves the problems of blockchain technology by achieving great speed, security, and decentralization. It is designed to focus on the payments over the network. It potentially can process more than 1,000 transactions per second. The native currency of Algorand is ALGO, and the current market price of Algorand (ALGO) is $1.503 after an increase of 9.24% over 24-hours. Notably, it is said by the Algorand Foundation that only 10 billion units of the ALGO will be created.
The Algorand network allows the users to build smart contracts to represent the new and existing assets. It leverages a two-tiered structure and a variation of the proof-of-stake algorithm for increasing the speeds and achieving finality. It distributes the validator rewards to all the investors holding ALGO, and it can potentially manage a variety of use cases via equitable community incentivization and strong throughput capacity.
We know that the increase in gas fees on Ethereum Network is one of the primary reasons that the traders of DeFI and the developers of decentralized applications are looking for alternative solutions based on blockchain. Algorand seems to be a good alternative for that, and it also offers the developers to use ASA (Algorand Standard Asset) protocol for creating new tokens.
ALGO is gaining value because the users believe in the technical specifics of Algorand. After facing many lows and highs in previous years, the price of ALGO is expected to rise in the future because of the network's focus on its development and optimization of the apps.