Why Algorand generate interest for Decentralize Finance (DeFi) and Decentralized Apps (dApps) solutions.
Algorand, a blockchain-based cryptocurrency platform with a native cryptocurrency $ALGO, is making waves as a new altcoin in the cryptocurrency market with its smart contract core architecture. This article explains why Algorand has generated interest in decentralized finance (DeFi) and decentralized apps (dApps) solutions.
Algorand “re-imagines” blockchain by addressing the key weaknesses of Bitcoin such as slow transactions and high mining costs. It is designed to facilitate secure, instant, and auditable transactions. Recently El Salvador — which has adopted Bitcoin as legal tender — partnered with Koibanx to develop the government’s blockchain infrastructure using Algorand.
The aim is to utilize the blockchain network for both private and public initiatives across Latin America, which includes smart contract financing platforms, a blockchain-based Covid-19 certification program and a point-of-sale credit issuance system. Titan, a fintech app, included Algorand in its actively managed cryptocurrency portfolio. Also, a crypto wallet for Telegram and WhatsApp, has recently migrated to the Algorand blockchain network to facilitate chat-based crypto transactions.
Meanwhile, Lovechain built its decentralized social media platform on the Algorand blockchain. Its users will be rewarded using its native $LOV token and allows them to capitalize on the value of their digital content creation IN addition, several organizations including startups, institutions, DeFi, and fintech currently utilize Algorand. Some of Algorand’s use cases include infrastructure, supply chain, securities, Stablecoins, digital assets, gaming and insurance.
Algorand as a blockchain
Notably, Algorand’s blockchain technologies can handle over 500,000 transactions daily which is higher when compared to alternatives like the Cardano blockchain, which handles about 150,000 transactions per day. Several startups are currently taking advantage of Algorand’s unique layer-1 smart contracts and other decentralized functionalities. The Algo has seen a % fall in the past 24 hours along with the market’s heavy bearish movement in the past week.
Presently, Algorand has a market cap of US$10.6 billion, an annual growth rate of 330%, ranking it the 21st most important token on CoinMarketCap Algorand’s blockchain network was designed to improve efficiency and transaction speed, thereby cutting down massively on transaction costs, although it is a wannabe Ethereum killer. An Ethereum killer is an open-source blockchain network that aims to provide superior performance in order to edge out Ethereum, which is recognized as the world’s most popular decentralized marketplace for financial services, apps, and games.
Algorand was founded by Silvio Micali, a computer science professor at the Massachusetts Institute of Technology. Silvio received the 2012 Turing Award for his innovative contributions in cryptography, blockchain, cryptocurrency protocol and electronic Cash, Making him a leading mind making in the cryptocurrency and blockchain industry.
The Algorand blockchain network has been benefiting from worldwide adaptations since its launch in 2019. The project has caught the attention of governments, investors, industries, and other major stakeholders in cryptocurrencies because of its instant transaction finalizations and high TPS rate.
Take, for, instance, LoginID, a multi-factor authentication company partnered with Algorand for the development of FIDO-certified biometric authentication solutions. Thanks to Algorand’s blockchain, recently launched a white-label NFT solution and an NFT marketplace. Presently, Algorand is listed on popular cryptocurrency exchanges such as Binance, Coinbase, Kraken, Huobi, etc.
Also, e-Money integrated with the Algorand blockchain to expedite the European digital currencies i.e. stablecoins such as eDKK, eSEK, eNOK, eCHF, and eEUR.
Based on Algorand
1. High TPS,
2. Low transaction fees,
3. Cutting-edge core architecture, Algorand early adopters can hope that it will experience widespread adoption across the world. Meanwhile, altcoins like Ethereum, Polkadot, Solana, Tezos, and Cosmos pose stiff competitors against Algorand.