Frequently Asked Questions
Algorand uses a Pure Proof-of-Stake (PPoS) consensus mechanism, which ensures fast finality, minimal transaction fees, and high throughput. These properties make it well-suited for building decentralized apps, DeFi solutions, and enterprise-grade systems that require scalability and reliability.
Smart contracts on Algorand are developed using TEAL and PyTEAL, which allow for secure and efficient logic execution directly on Layer-1. This helps eliminate the need for external execution layers and keeps contract performance fast and consistent.
ASA is Algorand’s native token standard used to create and manage digital assets on-chain. It supports both fungible and non-fungible tokens, and includes built-in functions for compliance flags, freezing, clawback, and asset configuration, making it ideal for enterprise applications.
Yes, Algorand is widely used for DeFi application development. Its low-latency finality, fast transaction speed, and cost-effectiveness make it suitable for decentralized exchanges, lending platforms, staking services, and stablecoin systems.
To build a dApp on Algorand, developers start with smart contract creation using TEAL or PyTEAL, integrate frontend and backend components using SDKs like Python or JavaScript, and test the application on Algorand’s TestNet before deploying it live on MainNet.
