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Can Algorand be mined?

February 23, 2022
< 1 minutes read

Algorand is a high-performance blockchain whose goal is to create and exchange value efficiently, transparently, and securely. The token uses a Pure Proof of Stake (PPoS) and pseudorandom functions to prevent bad actors from colluding on the network.

Mining new Algorand ($ALGO) tokens

Mining involves a large selection of hardware and it’s whole scope is to validate the transactions in exchange for rewards, while mining is possible for Proof of Work algorithms, it doesn’t work for PoS (Proof of Stake).

Can Algorand ($ALGO) be Mined?

Simple answer: No, Algorand cannot be mined.
As mentioned above, Algorand uses the Proof of Stake consensus mechanism which eliminates the need of mining. Advocates for PoS agree that this mechanism can be more scalable, safe and cheaper, however it does eliminate the need of mining which can be diametral for people that can’t buy the tokens directly from an exchange.

Mining Algorand - Is there another way?

While you can’t mine Algorand using your computer or a specially built miner, you can stake Algorand in exchange for new tokens, doing so you will help secure the network and in exchange you will be rewarded with new tokens.

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