Algorand + Bison Trails



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Why Choose Bison Trails

Participate with confidence based on Bison Trails’ expertise and experience on the Algorand protocol. Our engineers have supported the protocol since the testnet and worked with the Algorand development team on load testing, protocol upgrades, and protocol documentation.


  • Automatically scale your infrastructure with our proprietary technology
  • Decrease costs while fully vesting your tokens
  • Easily access data from the Algorand blockchain to analyze trends or build robust applications
  • Manage governance and participation with insights and guidance from our protocol specialists

    A Guide to Algorand byBison TrailsNavigate to a Section:

  1. Introduction
  2. How to participate
  3. Rewards
  4. Risks of participation
  5. Governance
  6. Why run Algorand nodes with Bison Trails?

An Introduction to Algorand

Launched in June 2019, Algorand is a pure proof of stake (PPoS) protocol with open participation and transaction finality. It’s focus is on financial applications and enterprise use cases.

PPos is similar to PoS as it uses stake-weight to determine which node will be selected to produce a block. The key difference is how the consensus mechanism performs their calculations to select a validator. On most PoS protocols, nodes are randomly selected based on their proportion of staked tokens. On Algorand, the selection is per token. If an Algorand validator node has 1m algos on it, every one of the one million tokens has an equal chance of being selected, which results in the participation node to which it is staked proposing the block. The selected token, and not the node, receives the rewards for the block.

There are two types of nodes: relay nodes and participation nodes. Relay nodes are network hubs that communicate with many other nodes. By accumulating messages from participation nodes and the relay nodes connected to them, relay nodes can be more efficient re-propagating valid messages, allowing the system to maintain a higher throughput. Participation nodes run the consensus protocol, and communicate with each other through relay nodes. They ensure the security of the blockchain; as long as enough participation nodes run consensus honestly, the chain will not fork, even if all the relay nodes are compromised.

There is no set group of block proposers or committees on Algorand. Instead the unpredictable selection of those parties, performed every round, help ensure consensus-level security. Malicious actors can not know which accounts will be selected and therefore which users they should corrupt. By the time a malicious actor could know this information, it is too late to use the knowledge for nefarious purposes. Once the new round begins, and new users are selected for block certification, the information gained is no longer accurate.


How to Participate on Algorand

With Algorand, users do not need to stake or delegate their tokens. Every token holder that has their tokens in an address online can participate in consensus. The user generates and registers a participation key (seperate from their spending keys) to be able to propose and vote on blocks. Each participation key must be linked to a participating node.

Consensus requires three steps to produce a block: propose, soft vote, and certify vote.
  • Propose: All participating nodes determine if any of their affiliated accounts have been selected to propose a block. The nodes associated with the selected accounts send block proposals, along with a Verifiable Random Function (VRF) proof to verify the account is the valid proposer, to the nodes affiliated with accounts selected to be part of the soft vote committee.
  • Soft Vote: The soft vote committee filters the proposals down to one by voting to confirm the block. Each account’s vote is weighted based on the number of algos it has. These accounts vote for the lowest VRF block proposal calculated at the timeout. The vote, and another VRF proof showing the account was selected for the committee, will be sent to all other committee nodes. The nodes verify the committee membership VRF proof before adding to the vote count. Once quorum is reached for the soft vote, the process moves to the certify vote step.
  • Certify: A certify committee then checks the block proposal that won the soft vote for overspending, double-spending, or other problems. If the block is valid, the committee votes to certify it. Once a quorum is reached, the round ends and a certificate for the block is created and written to the ledger.

Rewards on Algorand

Every token holder with a minimum 1 ALGO is eligible to earn rewards. Tokens held in a non-custodial wallet automatically participate while those held with custodians or centralized wallet and exchanges depend on the policies of the custodian, wallet, or exchange.

Rewards are distributed approximately every 9 minutes, based on the circulating supply of algos and the current reward rate.

As of March 2021, the rate of inflation is 6.5%. The most up to date rate can be found on the Algorand block explorer.

All rewards accrue to selected token holder’s accounts. No additional rewards are provided to relay or participation node operators.

Risks of Participation on Algorand

There is no slashing in Algorand.

Governance on Algorand

Algorand recently put forward a proposal to decentralize governance of the protocol to Algorand participants. All Algo holders can volunteer to become Governors who will serve a quarter at a time and vote on matters of ecosystem development. Governors must lock up Algos to participate and will receive rewards for their time and commitment. Voting will be weighted by the stake committed to governance.

Algorand expects to deploy governance in two phases:
  • an inception period beginning in Q4 2021, where some aspects will be implemented off-chain
  • the full roll-out beginning in early 2022, where all aspects will be on-chain and controlled by smart contracts

Read more about the proposal.

Why run Algorand nodes with Bison Trails?

  • Enterprise-Grade Infrastructure Security: As one of the most trusted names in the blockchain infrastructure industry, we have best-in-class security augmented by information, application, and incident management policies.
  • Easy-to-Use Platform: We designed an intuitive user experience that is surprisingly simple given the complexity of the underlying technology. Our platform’s automatic node management workflow frees our customers from the worry of constantly checking or managing their active participation. We also keep our customers in full control.
  • Infrastructure and Protocol Engineering Experts: We’re node, participatory infrastructure, and protocol experts. We test all software, infrastructure, and protocol upgrades on our own infrastructure first ensuring any breaking issues are caught well before propagating changes to our customers’ infrastructure.
  • Protocol Knowledge: Our dedicated protocol specialists keep Bison Trails’ customers up-to-date about changes to the validator ecosystem. They provide advice, insights, and guidance that arms our customers with critical information to better manage their participation.
  • Premium Provider: We are the world’s premier multi-cloud, multi-region infrastructure provider specializing in permissionless participatory networks.
  • Custodian Agnostic: As a non-custodial infrastructure provider, we can work with you to participate in Algorand regardless of your custody solution.

Algorand is a pure proof-of-stake protocol with open participation and transaction finality. Learn more


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THIS DOCUMENT IS FOR INFORMATIONAL PURPOSES ONLY. PLEASE DO NOT CONSTRUE ANY SUCH INFORMATION OR OTHER MATERIAL CONTAINED IN THIS DOCUMENT AS LEGAL, TAX, INVESTMENT, FINANCIAL, OR OTHER ADVICE. THIS DOCUMENT AND THE INFORMATION CONTAINED HEREIN IS NOT A RECOMMENDATION OR ENDORSEMENT OF ANY DIGITAL ASSET, PROTOCOL, NETWORK OR PROJECT. HOWEVER, BISON TRAILS (INCLUDING ITS AFFILIATES AND/OR EMPLOYEES) MAY HAVE, OR MAY IN THE FUTURE HAVE, A SIGNIFICANT FINANCIAL INTEREST IN, AND MAY RECEIVE COMPENSATION FOR SERVICES RELATED TO, ONE OR MORE OF THE DIGITAL ASSETS, PROTOCOLS, NETWORKS, ENTITIES, PROJECTS AND/OR VENTURES DISCUSSED HEREIN.

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