Algorand with Algo coin is the only blockchain that keeps SSD its priority i.e Scalability, Security and Decentralization. It’s on the way to create a secure network that is totally bug-free, has absolutely zero instances of hacking and all this without compromising the soul of a blockchain i.e decentralization. It’s there to outsmart the competing blockchain against all these parameters, including speed. In this post, I will deep dive into Algorand blockchain and explore the potential of Algo cryptocurrency with possible price prediction. Let’s dive in and explore the Algorand project –
Watch the complete video on Algo Coin –
What is Algorand?
Algorand is a decentralized, permissionless and open-source blockchain that was created to address 3 problems faced by native blockchains i.e Scalability, Security and Decentralization (similar to Fantom FTM Coin). The project was created to simultaneously maximize the potential of all these factors without compromising any individual factor among them. Of course, it weighs in the factor of speed. The blockchain is capable of creating Dapps, NFTs and smart contracts of all types (stateless and stateful).
Algorand was launched in the year 2019 by award-winning (Turing Award) MIT professor Silvio Micali who’s an expert in the field of cryptography. The team consists of researchers, scientists and mathematicians. Apart from the core team, Algorand also has the “Algorand Foundation” that powers the Algorand project through research and governance.
Algorand aims to create a borderless economy through it’s blockchain
What is Algorand Algo Coin?
Algo coin is the native token of the Algorand blockchain. It is used for smart contracts computations, pay for the transaction fee and secure the network. Something similar to Avalanche crypto, AVAX coin. Apart from the use case, the best feature of Algo coin is staking for investors. Holders can stake Algo coins on the network and earn a passive income in the range of 5-6% yield per year.
Apart from these features, Algo token is also used as an integral part of DeFi applications created on the network. It’s virtual versions like wrapped Algo (wALGO) mimics ERC20 token which can be used on DeFi applications built on Ethereum blockchain.
The total supply of Algo coin is capped at 10 billion
How does Algorand work?
Algorand mainnet was launched in 2019 that runs on Pure Proof of Stake consensus mechanism (PPoS). The consensus mechanism works in two phases –
- Block proposal phase
- Block finalization phase
Block proposal phase:
This phase follows the basic principle of Proof of Stake. A committee is selected from the group of validators at random (like winning a lottery) to propose the creation of a new block on the network. Algorand follows the process called “cryptographic sortition” at the time of committee selection. In cryptographic sortition, a user is selected depending on the volume of Algo staked by him on the network (higher stake equals higher chances).
There’s no central authority that decides the selection of the committee, therefore the user has to execute verifiable random function (VRF) locally in order to check if he’s part of the committee or not and further inform other members of the committee. After confirmation, user builds the proposed block which is then sent to the network for review.
Block finalization phase:
In this phase, cryptographic sortition is again used to determine the committee. This committee is also selected at random but it is different from the block proposal committee, though membership overlap is possible.
The committee then reviews and analyse the proposed block on the network. Voting is done to either accept or reject the proposed block. If the committee achieves consensus, the block is accepted and added to the network as a new block.
Algorand consensus is equipped with the feature of “player replaceability“. Every time a different committee is selected whenever a phase has to run, this helps the network to prevent possible cyber attacks and helps secure the network.
Algorand achieves processing speed of 1000 TPS with this consensus protocol
Carbon Neutral Blockchain:
Algorand claims to be completely carbon neutral. It is said to generate just two millionths of CO2 compared to competing blockchains which is a big plus considering the shift of corporations and users towards eco-friendly blockchain.
Cannot be Forked:
Algorand cannot be forked, making it secure in maintaining consensus even if the network is hacked. This is a plus for financial applications that runs a number of financial transactions on the network.
Comprehensive Developer Tools:
Low Transaction Fee:
Algorand claims to offer the lowest transaction fee charges while using the platform for Dapps creation or smart contract computations. It charges as low as .001 Algos for layer 1 smart contracts.
The blockchain is designed keeping the trilemma in mind i.e Scalability, Security and Decentralization. It is one of a kind network that leads in all 3 fronts with an ability to infinite scale itself as said by the creators of the blockchains. Making it one of the most desirable blockchains of the future.
Algorand supports atomic transfer which means it can validate the batch of financial transactions among a group of strangers without the involvement of an intermediary.
Terra Luna is bringing its stablecoin (UST) on Algorand blockchain
Algorand offers a high transaction speed of 1000 TPS. This has become a standard benchmark since competing blockchains like Solana Crypto (SOL) already process 50,000 TPS, on top of that ETH2.0 offers 1000+ TPS leaving Algorand behind in the race.
Marketing and PR activity:
Algorand doesn’t seem to market its potential and reach mainstream users. It was later in 2021, the company gave thought to aggressively market itself after the recent bull run. That accounts for the lost time since the ICO was a big flop for investors who invested in the coin and bought at a higher initial price.
Algorand inked noticeable partnerships with FIFA, Nigerian government etc. Check the latest update on Algorand partnerships.
Algorand Algo Coin ICO:
Algo coin ICO took place in June 2019 at the same time mainnet went live. Algorand raised a total of $60 million by selling 25 million tokens at an ICO price of $2.40 per token. Though the ICO was successful, it wasn’t the same with investors who bought the coin during the event.
Soon after ICO, the price of Algo went downhill and hit an all-time low of 10 cents before claiming $1 spot, back in Feb 2021.
Algo Coin Supply Schedule:
The total supply of Algo tokens is capped at 10 billion. However, it follows a pre-planned supply schedule which goes as follows –
- A total of 3 billion tokens will be released in the first five years of mainnet launch. This will include 25 million tokens offered during ICO.
- Additional 1.75 billion tokens will be distributed over time as rewards for participating nodes.
- Relay nodes will receive 2.5 billions Algo tokens over a period of time.
- Algorand foundation will reserve 2.5 billion tokens as a capital to fund Algorand project.
- Remaining 0.25 billion Algo tokens will be distributed for the end user grants.
Algorand Blockchain Projects:
There are number of projects developing on the Algo blockchain from decentralized apps to financial projects. Sharing the top 3 that are picking up the pace –
A DeFi software for music artists to fund their next project using the Opulous platform. It extends its offering by providing DeFi loans under certain conditions.
Reach provides a simplified platform to build blockchain-based applications with its core focus on Ethereum and Algorand blockchains.
The Marshall Islands:
Algorand in collaboration with SFB technologies is all set to power the first digital currency SOV (Sovereign Coin) to be legally accepted by The Marshall Islands.
Algo Coin Price:
Please check the latest Algo coin price, shared below –
Algo Coin Price Prediction:
Powered by a strong team of researchers, scientists and cryptography experts. Algorand has a clear vision to create a borderless economy through its blockchain. The project is promising, however, stiff and rising competition poses threat to its adoption and growth.
The cryptocurrency market as a whole is entering into a consolidation phase and Algorand has yet to outperform its peers when it comes to mass adoption and higher visibility. Though the ICO was a huge success for the team, it wasn’t so for the money-savvy investors.
The current price point of the Algo coin may interest the investors which can push the price level to somewhere around $5 for the short term. However, I doubt the same can be sustained for a longer period of time, leave aside entering into three figures.
On the bright side, Algo may enter in the range between ($2 -$5), which can trigger ICO holders to sell out and maximize profits. If Algo sustains this price range then we may see it aiming for the $10 mark but that’s nowhere in the hindsight.
VeChain VET crypto can be an alternative investment option
Where to Buy Algo Coin?
Algo coin is available for purchase on the leading crypto exchanges like Binance, Bittrex Global and Coinbase. Users need to create an account and load the wallet with USD to purchase ALGO or any other digital asset available on the platform.
If you’re an Indian user, you can create an account on the WazirX platform to buy, sell or hold ALGO coin or any other cryptocurrency by depositing INR on the platform.
Is Algorand Algo Coin worth investing?
Algorand is one of the green blockchains that is actually carbon neutral. Moreover, it offers seamless transactions with a latency rate of fewer than 5 seconds. It has a lot of benefits over a standard blockchain however, it falls behind when it comes to adoption rate and visibility.
The coin is yet to make the ICO holders profitable. Though the news of 600% jump in 2021 is true but compared to other blockchains it lags in volatility. Higher volatility is a double-edged sword, it’s necessary to push the coin to a high level, that’s not the case with Algo.
The question you should ask yourself – Why do I invest in Algo coin when there are similar projects with higher adoption rates and volatility? Read the complete post and if you’re satisfied with the use case and potential of the project then go ahead and park your money in the coin.
I am neutral to negative on the outlook of this coin. Though the project is genuine and has potential, I will stick to my outlook for the moment. What’s your opinion?
This completes my review of Algorand Algo coin. In the next post, I will cover Internet Computer ICP coin and Stellar Lumens (XLM). If you like the post, please share and educate your friends. Do remember to subscribe to my YouTube channel for more informative content, released every week.
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.