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You\u2019ll need to keep at least one algorand validators<\/a> token in your wallet to be eligible for rewards. Algorand allows practically any ALGO token holder to participate in consensus, regardless of the size of their stake. Because of this, the Algorand blockchain is inherently decentralized.<\/p>\n<\/p>\n The ALGO rewards system adds to the circulating supply of tokens, which is inflationary. Transaction ADA fees on Algorand are around 0.001 ALGO, making them a fraction of the cost of transactions on Ethereum, the leading smart contract blockchain. During periods of network congestion, the Ethereum blockchain can slow down significantly. When this happens, gas fees soar, creating an unstable environment for developers and investors. Although the Ethereum 2.0 upgrade addresses these issues, transactions on Algorand are significantly faster and cheaper.<\/p>\n<\/p>\n The project claims its technology is particularly useful for financial services, Decentralized Finance , fintech, and institutions. Another issue in Algorand which incentives can mitigate is that not all committee members are obligated to vote. Since blockchain participants don\u2019t know which nodes are in the committee validator set for every round.<\/p>\n<\/p>\n Wouldn’t it be more secure to just implement Algorand state proofs instead since it removes the need for extra validators?<\/p>\n — Alwayslearning (@Alwaysl63264798) January 2, 2023<\/a><\/p><\/blockquote>\n\n
Algorand \u2013 A New Scalable and Secure Approach to Byzantine Fault Tolerant Consensus<\/h2>\n<\/p>\n
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