Why You Shouldn't Overlook Algorand – It has a Lot of Potential

Consequently, most of the altcoins and their Blockchain projects remain obscure, hardly ever receiving publicity. Regardless, several of them have shown great promise in their technology and long-term value. Algorand is one such project.

So, what’s Algorand? What Features distinguish it from the rest? What promise does it hold? This article is a deep dive into the Algorand blockchain and why you shouldn’t overlook it when investing in cryptocurrencies.

Understanding the Algorand Blockchain

Algorand is the world’s first true Pure Proof-of-Stake (PPoS) blockchain-based68. It describes itself as the future of finance. The project launched in 2019, and its native token is the ALGO. ALGO is also the platform’s utility token.

Besides being open source and public, its technology supports Layer-1 BCs with high performance. The BCs guarantee users high security, transaction finality, complete privacy, and scalability.

Additionally, they provide cutting-edge smart contracts and Co-chain transactions. All these features are central to the platform’s FutureFi intentions.

What are Algorand’s Unique Features?

Algorand isn’t your run-of-the-mill blockchain project. It has features that set it apart from the rest. So, which are they? Let’s take a look at what makes it unique.

It Supports Self Validating Transactions

Algorand’s PPOs protocol sets it apart from other blockchains. The PPoS algorithm enables the self-validation of transactions. Through its in-built Verifiable Random Function, the platform randomly selects the nodes to validate transactions.

From the outset, Algorand aspired to be a democratic platform. As indicated already, it has a self-selection feature. Again, the more ALGO one holds, the higher their chance of selection.

It Has Robust Security

Algorand boasts of top-notch security not only on its network but also on its consensus. Its protocol guards against malicious activity by secretly and randomly selecting verification nodes. The validator(s) for the next block remains unknown until the platform generates that block.

Each generated block secures its information. This process repeats itself with the consensus picking new validators privately at every turn. As such, the network secures itself from attackers. Algorand’s anti-forking mechanism also helps secure the network.

Has a High Transaction Throughput

Most cryptocurrency networks are grappling with low volumes of transactions per second (TPS). Not so with Algorand. Currently, it has a throughput of 1000 TPS. That’s astounding considering that the BTC network manages a miserly 7 TPS! And although ETH fares slightly better than BTC at 20 TPS, its transaction speeds pale compared to Algorand’s.

It’s Scalable, Decentralized, and Secure

Many BC projects struggle with the challenge of achieving a balance between Decentralization, Scalability, and Security. This situation is what’s known as the Blockchain Trilemma. Meeting any two of these features inevitably leads to a compromise of the third.

Algorand’s architecture enables it to attain decentralization while remaining secure and scalable. Its PPoS protocol not only allows it to achieve higher throughput but also fortifies it. Moreover, it allows it to reach consensus while eliminating central authorities from transactions.

You Can Earn Without Staking

Algorand had a unique, rewarding system. It will reward you with ALGO when you form a new block. The reward is irrespective of whether you had staked funds or not. The caveat is that you have to have held the token in your non-custodial wallet.

Is Algorand a Good Investment?

On the face of it, Algorand would pass for any other blockchain. The only visible features differentiating it from the others are its futuristic security, decentralization, and scalability. But that’s not all it has to it. The project has other obscure attributes that make it a good investment bet.

Algorand’s structure and plans indicate that in the long term, it’ll be a valuable holding. Here are some reasons why you shouldn’t ignore it.

It Has a Reputable Team

Algorand is the Brainchild of revered cryptography professionals. Its creator Professor Silvio Micali of MIT is an award-winning cryptographer. Among others, he has won the Turing Award for his work in this space.

Prof Micali brought in fellow MIT professors to collaborate on the project. One of them is an acclaimed CTO that’s worked for Google. He’s gained recognition for his expertise in research and security. Algorand maintains a dedicated team of professionals in RD, business marketing, and communications.

There’s Real-World Interest in its Offering

Algorand’s BC solutions continue to attract interest within the crypto space. The well thought products and documented code position it for commercial success. Today it is among the top 100 cryptos. At the same, it continues to draw positive vibes from players in the crypto sector.

It Has the Backing of World-Class Investors

Algorand’s partnerships underpin its long-term stability. It has the backing of world-class venture capitalists, including Pillar and Union Square Ventures.

Its other significant investors are Arrington XRP, Brainchild, and 11-11 Ventures. And recently, it has partnered with Flipside Crypto. The partnership will help Algorand develop advanced analytics tools for the dApp market.

Moreover, its public coin sales in 2017 and 2019 netted $60 million and $200 million, respectively. These developments indicate investor confidence in the project. Again, they give it a healthy financial base moving forward.

It’s Planning Further Developments

In keeping with its progressive mindset, the platform is working on industry-changing projects. For instance, it explores how to enhance BC interoperability, performance, and scalability. Also, it is working on innovating public and private ate crypto models besides Layer-2 Smart Contract.

It Supports the Creator Economy

The Non-Fungible Token(NFTs) craze is sweeping through the crypto-verse. Algorand understands its potential to transform the DeFi landscape. As such, it has positioned itself to tap into this budding market.

Its core functionality and performance make it the ideal platform to support the expanding NFT sector. And as NFTs gain in popularity, they’ll be the go-to solution for scalability, environmental impact, and speed issues.

The ALGO Coin’s Impressive Growth

After a period of being down, the ALGO coin is looking up. A dramatic plummet that began in 2019 saw it hit its lowest in March 2020. But it has recently rallied, hitting a growth rate of approximately 496%! Such a growth speaks of the project’s soundness.

Final Thoughts

If you’re looking for new cryptos with long-term promises, then Algorand is your choice. In the wake of the growing DeFi sector, its future shines bright. Today Algorand is one of the most influential protocols supporting smart contracts. It has been innovating since its inception, a feature it’s keen to continue.

Everything seems to be going right for it. Not only does it have a decorated team at its helm, but it has also attracted world-class venture capitalists. It uses cutting-edge technology drawn from its sound scientific foundations. It isn’t wonder then that it has come up with revolutionary crypto solutions. It’s easy to see why it has potential, and it would be wise not to ignore it.

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