Algorand was created in 2019 by an MIT professor Silvio Micali. The blockchain was designed to solve the three common problems plaguing the industry. The cryptocurrency has been surging upwards in the weekly timeframe – making it one of the talked-about cryptos. We delve into what makes Algorand special and whether or not the cryptocurrency has future potential.
What is Algorand?
Essentially, Algorand is a blockchain. The blockchain is a payment-focused network targeting issues of the blockchain industry but we will get to that later. The public blockchain enables developers to create decentralized applications through the usage of smart contracts. Smart contracts are basically programmed agreements. So, if Algorand works similar to other blockchains what makes it special?
Scalability, decentralization, and security are the three major problems facing the blockchain industry. The bull run of 2021 made it evident that the current blockchains are nowhere ready for mass-scale adoption. Ethereum – the queen of the market and the hotspot of DeFi – suffered from phenomenally high transaction fees as the network congested with increased activity. On the other hand, decentralization and security are also considered inverse to each other. For the security of the network, some decentralization has to be sacrificed. However, decentralization is the selling point of cryptocurrencies – without which they hold little to no appeal.
Now how does Algorand step into all of this? The blockchain of Algorand stands near-unparalleled in terms of speed. The network can process tens of thousands of transactions in just a second. Algorand is known for its phenomenally high throughput which does not sacrifice decentralization of the network as it employs a Proof-of-Stake mechanism. PoS blockchains are also being preferred nowadays as environmental concerns regarding Proof-of-Work blockchains rose significantly. PoS consensus mechanism is more efficient and environmental-friendly. The PoS mechanism also ensures that Algorand creates a new block in just five seconds – achieving transaction finality instantaneously.
What is ALGO’s future?
The features of Algorand also makes it specifically tailored for NFT use. Staggering high speed, complete decentralization, and security together makes it an ideal platform for NFTs, and with NFTs becoming increasingly popular with every passing day, this use-case is expected to boost the value of the cryptocurrency. For example, an Italian copyright collecting agency was able to mint 4.5 million NFT rights in just 4.5 hours.
Algorand is also the official blockchain partner of World Chess and the 2021 FIDE World Championship Match. The network has also partnered with the World Chess to produce a limited edition NFT collection of the Chess Championship sets.
The price predictions for the cryptocurrency are also bullish as the fundamentals are strong. According to the estimates of Wallet Investor, ALGO is expected to be operating at a price level of $1.82 in a year’s time. The token is expected to reach towards $4.49 in five years. Digital Coin Price also predicts a price of $3.84 by 2026.
