Algorand is a project that was created by Sylvio Micali, an MIT professor, and well-known computer scientist. This project was made so that smart contracts can run, but it will also be able to handle thousands of requests per second. The idea behind it is to make the decentralized finance sector as fast and scalable as traditional fiat money. When the ongoing projects are finished, it will be able to easily compete with financial giants like Visa in terms of how quickly transactions can be made.
Algorand’s pros
You’ve come to the right place if you’re a new trader looking for cheap currency. At its current price of $1.11, it is expected to be a good choice both now and in the future. It is the currency that is worth the least on the market. But please keep in mind that this won’t be true in just a few years. It can grow faster than even the most well-known blockchains. Even innovative projects like Ethereum and Binance are happy to stay at 30 and 300 transactions per second, respectively. Before the new update, it could do nearly 1300 transactions per second. It is based on a real-world use-case model that makes changes to help it be used in different fields. It is an alternative to the current networks, which use more energy and leave bigger carbon footprints. Algorand is an option for people who want to avoid the inconsistent and often expensive gas fees of Ethereum-based crypto projects.
Algorand’s downsides
Even though Algorand has cutting-edge technology, it is less likely to be able to compete with the Ethereum blockchain, which is the second largest in the world.
Algorand has moved into other innovative fields because Solana, Cardano, and Polkadot are creating a lot of competition in the market. When it comes to the future, we only hear good things from everyone. Due to the volatility of the market, the coin may lose some ground in the short term, but this isn’t likely to have any long-term effects. At the moment, the coin is worth $0.78. The ALGO price prediction says that in the short term, the coin could reach $2.4 to $2.6 by the end of 2022. This would be a 150% increase from where it is now. The price could go up to anywhere from $5 to $7 in the next five years. But the real deal would be at the end of 2030 when the coin could be worth $30 to $45. A huge growth of 3000%.
How Algorand works
In 2017, Silvio began to work on the Algorand chain. But the project didn’t really start until 2019 when it raised around $60 million through a token sale. Algorand doesn’t add new protocols. Instead, it works on the protocols that are already in place to make them a lot more reliable than they are now. Algorand’s pure proof-of-stake system is a new and improved version of Bitcoin’s proof-of-work mining system. Even though the second one is safe, environmentalists don’t like it because it uses too much energy and leaves behind too much carbon. The pure-proof-of-stake mining system is much faster than the existing protocols and can be shown to work well. The miners would be chosen by chance based on how much algo they hold. The user is more likely to be chosen if they have more Algo tokens. Then the users will be able to check and approve the transactions and make new blocks. Algorand was first made to be a place where titles, deeds, and property sales could be made easier. Algorand Smart Contracts, or ASC1, we’re going to run these, and we could expect the project to look into these more in the future.
Conclusion
Investors are getting more and more interested in this coin because its volatility has been historically low. But the unpredictability of the market could make that not the case. So, making an investment portfolio with that in mind is a good idea.
