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Author: Admin | 2025-04-28
Are used by the participation nodes to connect and keep track of the ledger. Anyone can run a relay or a participation node in Algorand, but while participation nodes are paid for their efforts, relay nodes cannot “mine” ALGO. Instead, the Algorand Foundation has established a reward system for relay nodes that will expire in two to five years. To connect to the Algorand network, they need virtualization software called Algorand Virtual Machine (AVM).The AVM is software that operates on both relay and participation nodes on the Algorand network. The stack engine of the AVM is responsible for evaluating the smart contracts on the Algorand network. In addition, the AVM assesses all of the logic contained in smart contracts before deciding whether or not to execute them.Smart contracts are handled by Algorand in two layers: on-chain and off-chain. On layer 1, the system enables smart contracts to function “on-chain,” similar to Ethereum blockchain. This means that each smart contract adds traffic to the network, and having too many of them can cause the network to slow down.To circumvent this, Algorand also provides layer 2 smart contracts, which are executed "off-chain." The smart contract does not add traffic to the network; instead, it runs outside the network and is recorded in the blockchain ledger.How to mine Algorand?At present, it is not possible to mine Algorand using computer hardware. However, because Algorand is based on the pure proof-of-stake consensus method, it is possible to receive ALGO rewards simply by staking Algorand in a crypto or Algorand wallet. So is Algorand a coin or token?Algorand is an altcoin that offers various value-added services due to smart-contract capability. The new feature expands the platform's applications, including decentralized finance (DeFi) and non-fungible token (NFT) enterprises.At present, these growth drivers support Algorand's bull thesis. ALGO-USD will
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