Algorand — The Future of Blockchain?
If you’ve been around the space for a while, you’ll surely have heard the term ‘scalability’. In essence, as a blockchain increases its capacity and more data needs to be shared between nodes, it can be difficult to maintain high transaction speeds, low transaction costs, and security. Typically, something has to give.
This technological trade-off is known as the blockchain trilemma. The blockchain trilemma states that a blockchain needs to be secure, decentralised, and scalable. The problem is that it is near-impossible to achieve all 3 in real terms.
For example, for Bitcoin to be secure and decentralised, Satoshi Nakamoto had to compromise on scalability. For XRP to be scalable and secure, the team had to compromise on decentralisation. Ethereum’s move from a Proof of Work to Proof of Stake protocol will fix its inherent scalability problems, but in the process, the network will lose a degree of its security.
The blockchain trilemma is a major problem that needs to be solved by developers when creating a layer one blockchain. There have been many attempts over the years to correct Bitcoin’s scalability issue, but until recently, none managed to do so without compromising on something else.
Algorand is one of the few networks that has been able to achieve all 3 of these key features. The Algorand blockchain is completely secure, completely decentralised, and importantly, completely scalable. It can support massive transaction throughput, all while maintaining low transaction fees and high transaction speeds.
To be able to support mass adoption of cryptocurrency is central to long-term viability, and Algorand’s unique characteristics enable it to do exactly that. Algorand has earned its label as a truly ‘next-generation’ blockchain, with some even claiming that it is the future of blockchain.
What is Algorand?
Algorand (ALGO) is a layer one, self-sustaining, blockchain network. It is a viable, scalable infrastructure that may well represent the future of DeFi.
On top of its unique Pure Proof of Stake (PPoS) protocol, Algorand also supports the development of decentralised applications and offers some of the most advanced smart-contract compatibility in blockchain.
Algorand has surpassed many prominent L1 blockchains, offering features that have yet to be achieved elsewhere in the space. To see exactly what makes Algorand so attractive, just take a look at the table below.
It is clear why new projects are choosing to build on Algorand, and why it’s one of the fastest growing networks around. Algorand is:
- Highly scalable
- Highly secure
- Smart contract compatible
- Capable of processing thousands of transactions per second
- Extremely affordable
- Capable of cross-chain support
No Scalability Struggles or Trilemma Trouble Here
Silvio Micali is the Founder and CEO of Algorand, and the brain behind the network’s unique PPOS protocol. Algo’s PPoS enables the network to do what no other network has been able to do.
Algorand’s consensus mechanism utilises two type of nodes: Relay Nodes and Participation Nodes. Relay Nodes randomly select a Participation Node to create the next block, and the likelihood of a node being selected is proportional to how much ALGO is staked.
Due to the lack of computational power required by the Algorand network when compared to expensive Proof of Work protocols, Algorand can not only guarantee near-instant transaction times and ultra-low fees, but it’s also one of the greenest networks in the world and is carbon negative.
As global warming casts a shadow of doubt on the sustainability of our current systems, Algorand being carbon negative while solving scalability problems and maintaining the benefits of a decentralised system is almost mind-bogglingly impressive.
This alone would be enough to make a stake for the title of ‘Future of Blockchain’. But that’s not all Algorand offers.
DApps DApps DApps!
As Algorand has created one of the most advanced blockchain networks around, developers have been rushing to the network to create a host of crypto platforms and products.
Algorand is one of the most powerful, cost-efficient, fastest, and secure networks. It can support a fully built out, global DeFi ecosystem with many DeFi applications already being enjoyed by users across the world.
Within the thriving DeFi ecosystem, users can trade assets on the Tinyman DEX, create and utilise the next generation of ALGO Stablecoins, Yield Farm on Yieldy, Lend assets, exchange and launch NFTs on Opulous, access NFT marketplaces and take advantage of synthetic assets on smilecoin, to name just a few of the DApps rolled out on Algorand.
Plus, developers are also working on cross-chain bridges that will allow for a seamless transfer of assets between Algorand, Ethereum, and other notable chains, as the network supports the idea of an interoperable future for blockchain.
There are some massively exciting Metaverse and GameFi projects preparing for launch on Algorand, on top of the rumours in the Algorand developer portal about a partnership with gaming engine giant, Unity.
The Drone Racing League launched the first play-to-earn game on the Algorand blockchain. Think Mario Kart, but way cooler and with drones. Users will be able to participate in flying drone races using virtual reality technology in an immersive Metaverse world.
The NFT industry is exploding on Algorand due to many native platforms offering fee-free minting, alongside near-0 network fees, and instantaneous transactions.
Opulous has created the first launchpad for copyright-backed music NFTs with the aim of empowering artists around the world. ZestBloom is quickly becoming a popular NFT marketplace, alongside many other prominent marketplaces.
There are NFT platforms for everything on Algorand. From sports to charitable organizations, movies to music, and even Aorist — a sustainable, environmentally-friendly NFT platform.
The World’s Greenest Blockchain
Silvio Micali has been an avid promoter of environmental sustainability, and creating an eco-friendly network has been a priority for the Algorand foundation. The team has done something truly impressive, and are incredibly proud of the fact that they have reached the milestone of being carbon negative.
While the Algorand Foundation has created much-needed solutions to the blockchain emissions problem, they have also taken a proactive approach to helping people all around the world.
Algorand works with projects that aid people in developing countries by providing the opportunity to create self-sovereign digital identities and a verifiable, tamper-proof way to store important personal information.
Major Initiatives from Algorand
The World’s First Fiat Payment Onboarding Solution
In January of 2022, Algorand has added direct fiat payment channels to its network through an integration with Alchemy Pay (ACH). Alchemy Pay provides payment solutions that connect fiat and crypto, and is supported in over 65 countries. The integration will enable Algorand to onboard users via fiat payment standards like Visa, Mastercard, PayPal and other payment channels.
This partnership was part of a wider initiative called the Blockchain Infrastructure Alliance, which is a collaboration to solve key blockchain issues and includes members of Alchemy Pay, Avalanche, NEO, Near Protocol and Polygon.
The First National Digital Currency Launches on Algorand
The Republic of the Marshall Islands has embraced technology and was the first country in the world to adopt a digital currency. The government for the Marshall Islands had to choose what network to select for undertaking this highly ambitious move and Algorand was the network of choice due to its speed, scalability, security, and ability to implement compliancy controls.
The Algorand network is quickly becoming the network of choice for governments and intuitions around the world. Other notable mentions include the likes of the International Blockchain Monetary Reserve which has created the Asia Reserve Currency coin (ARCC), the Golden Gate University School of Law, UC Berkely, Wilmore Academy, and many more.
To find out more about the exciting projects, use cases and other ways Algorand is shaping the future, be sure to check out the link here.
Sheesha’s Stand on Algorand
Sheesha Finance is dedicated to offering exposure to some of the most impactful projects in the crypto space. We are blockchain agnostic, and recognise the value that a multi-chain system can offer.
We believe that there are countless, incredible teams that are working on some amazing projects while utilising blockchain tech. Our goal is to support and provide our community with access to these projects, regardless of the network being used to build.
Adding Algorand to our list of distribution chains was a clear next step for the Sheesha Finance project. The impressive catalogue of highly ambitious projects being built on Algorand will be a welcome addition to our Ethereum, Binance Smart Chain, and Polygon partners.
We are incredibly excited for the opportunity to support teams building on Algorand and to bring our communiy the immense value offered by some of the network’s best projects.
Why Stake with Sheesha?
Sheesha Finance is a leading DeFi Staking Platform. We provide benefits from a premium, diversified cryptocurrency portfolio, with a staking platform that rewards investors of any size, from small to large ticket holders.
We have built an Investment and Incubation platform, Sheesha Foundry, with an extensive network of partners who are thought leaders in the crypto space. This allows us to consistently discover promising projects in their early stages.
Our easily convertible assets can be used to maximise rewards and gain exposure to existing and upcoming DeFi projects. With plans to become a member-managed Decentralised Autonomous Organisation (DAO), Sheesha Finance is dedicated to upholding full transparency and integrity within the DeFi space.