How Algorand processes transactions and reaches finality
Algorand processes transactions with pure proof-of-stake: a random proposer builds a block and a committee certifies it. Certified transfers are final.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
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Algorand launched its main network in June 2019. Every transaction moves through three stages: a proposer builds a block, committees filter and certify it, and the block is added to the ledger.
What is Algorand's transaction process?
Algorand uses pure proof-of-stake to validate and finalize transactions in blocks. Pure proof-of-stake means the chance to take part in consensus depends on how much ALGO a user holds and stakes, and the network does not rely on proof-of-work mining. Cryptographic sortition runs locally and privately on each node to randomly select users for consensus committees, so a single large holder does not control which transactions are processed.
What you need before you start
Before you send ALGO, gather the tools for the transfer. You need a wallet that supports Algorand, the recipient's Algorand address, and a small amount of ALGO to pay the network fee. The sender pays this fee, not the receiver.
- An Algorand wallet that holds ALGO.
- The recipient's Algorand address.
- Enough ALGO to cover the amount and the network fee.
- A stable internet connection.
How Algorand processes a transaction step by step
The steps below follow the order you use from your wallet to the final block. You sign with your private key, and the network selects a proposer and a committee. Once certified, the transaction cannot be reversed.
- 1Open your walletOpen your Algorand wallet. Check that you are on the main Algorand network.
- 2Enter recipient addressEnter the recipient address. Check the first and last characters.
- 3Enter the amountEnter the amount and check the fee. The fee is paid in ALGO.
- 4Sign the transactionSign the transaction. Your wallet uses your private key to sign the transaction.
- 5Broadcast to the networkBroadcast to the network. Your wallet sends the signed transaction to Algorand nodes.
- 6Wait for certificationWait for block certification. A randomly selected proposer builds a block, and a committee votes to certify it.
- 7Check finalityCheck finality. Once the block is certified, your transaction is final and cannot be reversed.
What to do after sending
After you broadcast, your wallet creates a transaction ID. You can track the transaction ID on an Algorand block explorer. The explorer shows whether the transaction is pending or confirmed.
Frequently asked questions
If a transaction fails, it is not added to the ledger, and the fee is usually not charged. Check the address and your balance, then try again.
No. Once you broadcast a signed transaction, you cannot cancel it. If it does not get certified within its validity window, it expires and drops.
No. You only need an Algorand address to receive ALGO. The sender pays the fee. You need ALGO only to send later.
A certified transaction is final and cannot be reversed. If the address belongs to someone else, they receive the ALGO. If the address is invalid, the network rejects it.
