The last few months in the crypto world have been preoccupied with meme-coins, whale activities, and new year resolutions. The unjustified attention towards these activities has pushed the potential developments in the field to the back of the line comfortably. Just as the investors began looking for options beyond Shiba Inu, inarguably the most viewed coin of 2021, Algorand has popped in many places. Let us see why it would matter to investors in 2022.
Algorand is the creation of Silvio Micali, an MIT professor who began this project back in 2017. It only means that there has been lots of effort behind this project to reach this %416 annual growth it posted in 2021. The project was put forth with the speed and security of crypto-based transactions. Currently, the Algorand infrastructure can process as many as 1,200 transactions per second and efforts are underway to bring this limit to 3,000 shortly. Eventually, this limit is expected to go as far as 45,000 which would make Algorand faster than the financial network of the Visa card.
The transaction validation uses pure proof of stake mechanism in the Algoramd blockchain. The older proof of stake controls gave the controls to a particular group with large holdings of the underlying cryptocurrency. Algorand, on the other hand, uses pure proof of stake, which picks the stakeholders randomly for validating the transactions. Moreover, this mechanism helps for a seamless payment environment by removing the complicated computational requirements of the proof of work mode.
Algorand is one of the technically sound crypto protocols out there with the ability to host multiple apps and projects. Just as we speak, the developers are working towards creating compatible dApps for Algorand that involve crypto financing, online gaming, and more. Moreover, the Algorand network protocol is built with two layers. While the first layer takes care of the smart contracts, layer 2 of Algorand hosts complicated contracts and decentralized apps.
The developers are allowed to create other tokens and crypto-based projects on the blockchain. However, ALGO would be the administrative native coin in the Algorand ecosystem. The Republic of the Marshall Islands has recently elected Algorand for hosting the national currency. So, we can understand that Algorand’s growth has been diversified and stable across all aspects. The previous 416% growth could potentially multiply just as the protocol posts steady in all these aspects. Even if the coin gets no sudden market surge, it would still pose a massive long-term growth and exceed $5 by 2026. So, Algorand is naturally a better alternative for high volatility meme-coins like Shiba Inu in 2022. Click here to know more about Algorand price predictions for this year.
