Algo Basics

The Algo is the crypto-currency of the Algorand blockchain. The Algorand blockchain has been built to help create an open, borderless economy where everybody can participate. This new type of digital economy can only run on a truly digital currency that works instantly, for everybody. This is the Algo.

Crypto-currencies like the Algo perform the same key tasks as paper money (often now referred to as FIAT currency) but, since they are truly digital, they can do so without all the challenges of paper money. The Algo can be used for buying and selling goods or services - whether that’s through e-commerce or retail - but unlike credit or debit cards, the transaction is truly instant. As a buyer, the crypto-currency (an Algo) leaves your wallet and is immediately in the wallet of the seller, at virtually no cost.The fact that this can occur instantly, at almost no cost, is hugely important - if you used a credit card instead for this purchase, there could be anywhere between 3% and 7% transaction fees on top of what you have purchased. This fee is usually charged to the seller who in turn adds it to the price of the product you buy! By using the Algo, you and the seller both save on these fees - meaning more money in your pocket and greater spending power.

The Algo can also be used to send money to anybody, instantly. No wire transfers, no forms to fill, no banks or exchanges to be used, no delays. Instead of moving money around being a task that takes days to happen, the Algo can do it in under 4.5 seconds - and the Algo is in the wallet of the receiver, ready for them to use instantly! Plus, the Algo transfer will be recorded on the Algorand blockchain, making it easy for verification by the payer and receiver.  In addition, digital money like the Algo opens up new possibilities on how to distribute money to not just one person but many people, instantly and simultaneously. Sending Algo to one person or many people is virtually the same digital task - and so occurs at the same speed. Money can be distributed to any number of people in under 4.5 seconds.

Another major advantage of a cryptocurrency like the Algo is that, as digital money, it can be divided into very small amounts (0.0001 ALGO for example). These small amounts can be distributed as rewards or small task payments in exactly the same way as larger amounts. This introduces an opportunity to create micropayments that were not possible due to the transaction costs and fees that are attached to using traditional money. Micropayments will enable new ways of people earning money and creating services that are yet to even be imagined.

It is important to understand that not all crypto-currencies are the same. A crypto-currency also has the benefit of the key features of the blockchain that it is built on. The Algo benefits from the unique features of the Algorand blockchain. These features make the Algo one of the powerful and trustworthy crypto-currencies available today. These are:

  1. Speed: An Algo can be sent to anyone’s wallet, in under 4.5 seconds. No waiting and wondering if your payment has gone through, no checking back minutes or hours later - you have almost instant confirmation your payment has been made.
  2. Scale: the Algorand blockchain is built for many billions of users. This means that, no matter how many Algo users there are, your payment will still occur in under 4.5 seconds. No slowing down, no confusion - instant confirmation.
  3. Trustworthy: the Algorand blockchain has been built in such a way that it is guaranteed not to fork. In blockchains, forking is a problem that can occur when a blockchain splits into more than 1 chain. When this happens, there can be a risk of knowing if your payment has been successful. With Algorand there can be no forks ever - so you can trust that your Algo are exactly where they are supposed to be, at all times.
  4. Transparent: the total amount of Algo was created at the launch of the Algorand blockchain. This occurred on June 19th, 2019, and 10Bn Algo was created. At any time, anybody can check the public Algorand blockchain to see how many Algo are in use.
  5. Secure: while the Algorand blockchain is transparent in many ways, it uses the most advanced cryptography (unbreakable digital codes) to ensure that all the personal and private information in your Algo payment remains that way. 

In summary, the Algo is one of the fastest, most secure and trustworthy crypto-currencies in use today. As the vision of a Borderless Economy becomes a reality, the Algo will be one of the most critical crypto-currencies in use.

In addition to being designed as a high performance crypto-currency, the Algo also performs many other functions for the Algorand community - additional information will be shared soon about how the Algo is the fuel for the Algorand economic & financial ecosystem, how it makes transactions (both simple and complex) safer and how it can be used as a store of value.

For technical information on the Algorand blockchain, visit here.

For information on the Algorand Mobile Wallet to store your Algo, visit here.

Disclaimer:

As the Algo is an openly traded crypto-currency, the value of the Algo when converted into a fiat or other crypto currency may fall or rise, depending on market sentiment or external conditions. Algorand does not control the price of the Algo. The distribution of some or all types of crypto-currencies, including the Algo, is not legal in certain jurisdictions and may be subject to certain restrictions in other jurisdictions.  Algorand does not directly distribute the Algo in countries where such distribution is not yet allowed (including the US), although secondary markets not under Algorand’s control may trade Algos in such jurisdictions. Algorand disclaims liability for any such trading and cautions purchasers to proceed at their own risk.