Since the launch of Algorand in the summer of 2019, more and more people are getting excited about the promising cryptocurrency, which aims to avoid some of the problems of older currencies. Decentralization, scale, and speed are the three challenges Algorand tries to solve. It does this by providing both the infrastructure and tools that many dApp developers need to create their apps and assets that can potentially be used by billions of people.
Algorand builds technology that accelerates the convergence between decentralized and traditional finance by enabling the simple creation of next generation financial products, protocols and exchange of value. — algorand.com
Solving The Trilemma
ALGO is a 3rd generation cryptocurrency that aims to solve the bitcoin trilemma, among other things. This refers to the situation where the three properties of scalability, decentralization, and security cannot all be increased at the same time without decreasing another component of the three again.
Algorand works by staking, which means that theoretically anyone can participate in the “proof of” mechanism. All the user has to do is hold his coins in the wallet. Therefore, it is not necessary to invest a lot of computing power, as with Bitcoin or other currencies.
Algorand is also looking for strong partners to make the currency more successful. They are also are working on gamification options that will ensure that users show greater interest and that completely new people are also recruited. This gamification thus provides playful opportunities that introduce users to Algorand in an exciting way and, accordingly, make them stay with it much longer.
History: Of Nobel Prizes and Touring Awards
Algorand was founded by Silvio Micali, who has been known for several decades for his work in research around cryptography, zero-knowledge, blockchain procedures, mechanism development, and a lot more. He has been awarded several prizes in the past — also for his merits with Algorand — such as the Turing Award in computer science, the Gödel Prize in theoretical computer science, and the RSA prize in cryptography. Micali has been working in computer science and cryptography since 1983. Before that, he studied at the University of Rome in 1978 and received his Ph.D. from the University of California in 1983.
The team includes a whole host of experts from the crypto community. One of these Advisors, namely Paul Milgrom, recently (October 2020) received the Nobel Prize for the field of economics. At Algorand, Paul Milgromis works on exactly this topic and thus strengthens the team as well as the product.
“ALGORAND IS CURRENTLY EXPERIENCING ACCELERATED ACCEPTANCE AND EXPANSION OF ITS NETWORK. DURING THIS PERIOD OF HYPER-GROWTH, IT IS CRUCIAL FOR US TO OPERATE AT A CARBON-NEGATIVE LEVEL. BECAUSE SUSTAINABLE GROWTH IS MANY TIMES BETTER THAN NORMAL GROWTH.” — Silvio Micali, Founder of Algorand
Algorand took off in February 2018 after seed funding and the subsequent release of the protocol, which was based on Pure Proof of Stake. After that, Algorand launched TestNet and started testing it together with community members. Over time, due to Micali’s good work, Algorand became increasingly well-known and secured a full $62 million in funding from a global investment group back in October 2018.
Numerous releases and open-source content later, TestNet then went public in April 2019, allowing it to be tested even more effectively. Ex-developers of other cryptocurrencies, for example, Ethereum, also joined to make Algorand even stronger and contribute their knowledge to make the project better.
As of June 12, Algorand was made completely open source.
Next to a whole set of interesting features, Algorand positions itself as a high-performance chain. Correspondingly, the transactions are completed within 5 seconds, which is an incredibly fast transaction time that other systems can hardly keep up with. Also, transactions are easy to make, and the fees low.
Currently, more than 500 companies use Algorand’s technology. A special feature of the project is the fact that it allows easy creation of financial products, protocols, as well as the exchange of values via DeFi.
For example, VitalPass, the first blockchain-based system to track COVID-19 vaccination, launches in Colombia with plans to expand to several countries in Latin America;
The world’s first blockchain-powered COVID passport has gone live in Colombia as part of a joint project between Algorand (ALGO) and Koibanx. The tool is capable of generating user-friendly, reliable, and simple experiences for patients and allows users to go from having a paper certificate to a digital certificate. — cryptoslate.com
Algorand has a strong team of experienced, award-winning leaders and advisors, one of whom has even won the Nobel Prize. This is also one of the qualities that make a real opportunity for the future.
What makes this even more exciting is the fact that Algorand has strong partners who are contributing. As mentioned, these also develop gamification systems, which ensure that even inexperienced users show interest and stay interested for longer. Algorand positions itself as a relatively new cryptocurrency with an experienced team and a strong community.
On June 2, Borderless Capital announced the creation of a $25 million fund to finance blockchain investments in Miami through the use of Algorand along with stablecoin operator Circle.
On June 3, MAPay announced the implementation of blockchain-based solutions on Algorand to reduce healthcare costs in Bermuda.
When you combine all of this, you can get a clearer picture of where this project is going and its appeal to potential investors. This has the potential to drive up the price of ALGO as more companies announce their investments through the use of Algorand.
Still, its direct competitor is ETH (2.0), Cardano, Polkadot, and Solana, which you should consider as well. Read:
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The article includes the personal opinion of the author.