A decentralised network designed to elucidate the blockchain trilemma by allowing users to achieve speed, security, and decentralisation all at the same time, Algorand is a permissionless and open-source blockchain network launched in June 2019 by computer scientist and MIT professor Silvio Micali, is a network that anybody can create. Algorand is envisioned as a payments-focused network with fast transactions and a heavy emphasis on reaching near-instant finality — that is, processing over 1,000 transactions per second (TPS) and achieving transaction finality in under five seconds.
Proof-of-Stake (PoS) consensus is used by Algorand, and validator incentives are dispersed to all ALGO coin holders which is capable of managing the high-throughput needs of extensive worldwide usage and diverse cases of use thanks to equitable community incentivization and great throughput capacity. Algorand is currently capable of hosting decentralised application (dApp) development and enabling scalability as a public smart contract blockchain that relies on staking.
Smart contracts, asset generation, and atomic swaps between assets are all made possible by the fundamental layer of Algorand's blockchain, which has a unique two-tiered structure. To guarantee security and compatibility, all of these operations take place on Layer 1 of the Algorand blockchain.
Platforms and users can create ASAs on the Algorand network's first layer, which represents new or current tokens on the network.
On the Ethereum network, this is similar to how ERC-20 tokens work. Simple smart contracts on the Algorand platform are organized and implemented as Layer-1 Algorand Smart Contracts (ASC1s), which means they have the same level of security as the consensus protocol.