Introduction to Algorand
Having too many options is that you often find it hard to select one. And the cryptocurrency market is facing such an issue with hundreds of new projects competing for a place in the market. However, one does not get into such confusion with Algorand as it is predicted to be pacing towards a brighter future. So, let us briefly see what this new project would mean for the future.
Algorand is a visionary project realized by MIT professor and popular computer scientist Sylvio Micali. This project was designed to run smart contracts but will have the ability to process thousands of requests per second. The idea behind Algorand is to place the decentralized finance sector on par with the mainstream fiat money in terms of speed and scalability. When the ongoing projects are completed, Algorand could easily compete with finance giants like Visa regarding transaction speed.
Working of Algorand (ALGO)
Silvio began working on the Algorand chain in 2017 itself. However, the project’s real launch was in 2019, when around 60 million dollars were raised through the token sale. Algorand does not introduce new protocols; instead, it works on the extant protocols to make them much more reliable than they currently are. The pure-proof-of-stake apparatus introduced by Algorand is a new and improved form of the proof-of-work mining apparatus of Bitcoin. Although secure, the latter is scorned by environmentalists for non-efficient energy consumption and carbon footprints.
The pure-proof-of-stake mining apparatus is provably efficient and much faster than the existing protocols. Selection miners would happen randomly based on how much They hold algo. The more Algo tokens the user has, the more likely they are to get selected. Then the users will be able to verify and validate the transactions and create new blocks.
Algorand was initially designed to be a platform that could facilitate titles, deeds, and property sales. These were to be powered by Algorand Smart Contracts or ASC1, and we could expect the project to explore these more extensively in the future.
Pros and Cons of Algorand
We provide a list of the pros and Cons of Algorand here to help you with making a decision.
- If you are a novice trader looking for an affordable currency, then You have come to the right place. Currently priced at $1.11, Algo is predicted to be a solid option for both the short-term and long-term.
- Algo is probably the most undervalued currency in the market. But, please be aware this will not be the case in just a few years from now.
- The scaling speed of Algorand is faster even than the well-established blockchains. While even innovative projects like Ethereum and Binance rest smugly at 30 and 300, respectively, Algorand can fast nearly 1300 transactions per second before the new update.
- Algorand follows a real-world use-case model where it makes improvements to help with its implementation in various fields.
- It offers an energy-efficient alternative for the current networks that leave bigger carbon footprints.
- Algorand could just be the option for those trying to escape the inconsistent and often expensive gas fees of Ethereum based crypto projects.
- Despite the cutting-edge technological equipment, Algorand is less likely to sustain competition with Ethereum blockchain, the second largest in the world.
- Algorand has moved into other innovative fields, as there is huge competition in the market with other projects like Solana, Cardano, and Polkadot.
Algorand Price Prediction for Upcoming Year’s
As far as the future is concerned, we only get optimistic takes from all around. The coin may indeed lose some ground in the short term due to the market’s volatility, and it is not expected to have any lasting effects in the long run. The coin is currently traded at $0.78. According to the ALGO price prediction, for the short term, the coin could potentially reach $2.4 to $2.6 by the end of 2022, which is a 150% growth from its current position. In the next five years, the price could soar to anywhere between $5 to $7. But the real deal would be by the end of 2030, when the coin might value at $30 to $45, with a whopping 3000% growth.
Is Buying Algorand Profitable?
The profitability of a cryptocurrency does not depend only on market fluctuations. There are several other things to be considered by investors to make the right decision. Firstly, it is the project’s vision that makes it valuable for a community. Algorand has solid technical and technological infrastructure that keeps it steadfast on the path to commercial success. Algorand is also backed by a coterie of research scientists, to say nothing of the MIT-based mind who is behind all these. There is a solid commercial backup for this cryptocurrency project from several firms worldwide. Recently, ZAR investment ventures helped Algorand to raise 887 million dollars. Furthermore, the Algo ecosystem has a series of projects planned and currently working on getting them ready for the upcoming years. Ranked at the 29th position in the market, Algorand looks profitable enough to attract new investments.
Investors are increasingly drawn towards this coin for historically low volatility. However, the unpredictable nature of the market may decide otherwise. So, It is advisable to make an investment portfolio with that in mind.