What is Algorand (ALGO) used for?

Algorand is a public blockchain designed for fast, low-cost transactions that are final as soon as they are recorded. Its native coin, ALGO, is used to pay fees and to take part in securing the network. The project officially launched in 2019 and has a maximum supply of 10 billion ALGO, according to the Algorand Foundation as cited by Kraken.

How does the Algorand blockchain work?

Algorand uses what it calls Pure Proof of Stake. For each block, the protocol randomly selects a proposer and committees of voters from ALGO holders, with the chance of selection weighted by stake. The general idea is covered in proof of work vs proof of stake.

The developer documentation says the chain does not fork. Once a transaction is in a block, it is final. If something goes wrong, the network may slow down or pause rather than split into competing versions. Blocks arrive about every 2.85 seconds, and the minimum fee is 0.001 ALGO.

Since a protocol upgrade in version 4.0, accounts that help run consensus can earn staking rewards. Eligible block proposers receive a share of fees plus a bonus that shrinks over time. Accounts that go missing can be suspended and lose eligibility until they register again.

What is Algorand used for?

The network supports smart contracts, which developers can write in Python among other languages. It also lets anyone create a token, fungible or non-fungible, with a single transaction and no contract code.

Algorand's own site lists uses including stablecoin payments, decentralized finance, and tokenizing real-world assets such as bonds, funds and real estate. Examples it cites include Lofty for fractional real estate, HesabPay for aid payments in Afghanistan, and Folks Finance for lending and borrowing. Kraken notes that the open-source code can also be used to run private or permissioned blockchains.

The project has also worked on defenses against future quantum computers. Its site says quantum-resistant signatures have been used on mainnet since 2025, with native post-quantum accounts released in 2026.

What is the Algorand Foundation?

The Algorand Foundation is a non-profit that oversees the protocol and supports its ecosystem. It was set up in Singapore and received an allocation of ALGO at launch, as did the company Algorand Inc. In January 2026 the Foundation announced a return to the United States with a new board, and in September 2026 it named William Herkelrath, a former Chainlink executive, as chief executive.

Supporters point to fast finality and the lack of forks. As with any network, adoption claims come from the project itself, and the guide on how to research a crypto project covers how to check them.