Algorand (ALGO) Crypto: Does the Future Look Good for Investors?
Several cryptocurrencies are vying to be top investment choices in 2022, and Algorand is among the lead contenders. What makes this digital currency notable is how it uses cryptographic tools to solve what was previously impossible computationally: creating an efficient algorithm that guarantees consensus.
Anyone can use the ALGO crypto coin to carry out transactions on Algordand’s network. Like other digital currencies, ALGO crypto can also be publicly traded. Keep reading to learn more about Algorand and what makes it a top cryptocurrency investment in 2022.
What Is Algorand?
Algorand is a permissionless blockchain platform that runs on a decentralized byzantine agreement protocol, which utilizes a pure proof-of-stake protocol. PPoS allows users to reach consensus and validate transactions based on the proportion of ALGO crypto coins they own. Capable of meeting large computational power demands, Algorand was developed to address several other challenges, too, including the likelihood of a 51% attack and any attempts at forking, which makes blocks and transactions that were once invalid, valid once again.
The platform’s digital coin ALGO began trading publicly in 2019 and was included in the list of all the top crypto exchanges. Between late January and mid-February 2022, the ALGO crypto price per share fluctuated between a high of $1.32 and a low of 83 cents. A little more than 7 billion ALGO coins are in circulation as of March 2022. The maximum supply of ALGO crypto coins stands at 10 billion.
What Is Algorand Used For?
As with other cryptocurrency platforms, users can conduct microfinance, copyright, and real estate transactions, for example, using Algoland. This platform was mainly designed, though, to enable developers to build new cryptocurrency-related applications.
Algorand’s Key Features
Algorand includes various features that set it apart from other blockchains.
Top Features of Algorand:
- Verifiable random functions: Pioneered by Algorand, VRF is a consensus algorithm that takes a secret key and a value and produces a pseudorandom output, providing proof that anyone can use to verify results. This is what leads to faster transaction speed and lower fees compared to other blockchains.
- Efficient transactions: ALGO crypto can be used for all transactions on the network, allowing purchases to occur quickly, easily, and cost-effectively.
- Scalable blockchain: Algorand’s blockchain protocol allows it to process thousands of transactions per second with low latency and cost. This allows for easy adoption by businesses and individuals.
- Reliable security: Cryptographic tools allow the network to achieve high levels of security while keeping data private. These tools enable users to remain anonymous and prevent tampering or revision of transactions on the blockchain.
- Turing complete: The Algorand blockchain is Turing-complete or universal, meaning that it runs any program. This allows for the easy creation of smart contracts and decentralized applications with minimal development work.
- Staking: While anyone who owns ALGO crypto can typically vote on new block creation, those with a higher stake — or who own more ALGO tokens — generally have a stronger say over validating transactions.
History of Algorand
Algorand was founded in 2017 by Silvio Micali, a Massachusetts Institute of Technology professor and Turing Award-winner with a background in cryptography that dates back to the 1980s. Renting thousands of Amazon servers, Micali and his staff ran several user simulations — from 10,000 to 500,000 users — driven by the view of creating a borderless economy that simultaneously achieved scalability and security.
Algorand’s focus on creating a secure and scalable blockchain makes it one of the most promising cryptocurrencies available in 2022. How the ALGO crypto coin performs in the next few years will determine whether the platform lives up to its promise.
Is Algorand a Good Investment?
Algorand might be a good investment for those looking to capitalize on the crypto craze over the long run. The platform’s ALGO crypto price, for example, is projected to reach $3.68 per share by 2030, as of March 28, 2022. That might be too long a wait for those wanting to see substantial returns in a matter of weeks, months, or two to five years. That’s why investing in Algorand may be most suitable for those looking to build a digital cash portfolio that gains value over time.
ALGO FAQInvestors looking to build a digital cash portfolio typically have several questions concerning the cryptocurrencies they're interested in buying. Here's a few questions that have interested Algorand investors.
- Can ALGO crypto be bought?
- Yes, ALGO crypto can be bought on any major cryptocurrency exchange, such as Coinbase or Kraken. It can also be purchased directly from the Algorand Foundation using either fiat currency or another cryptocurrency.
- Is Algorand safe?
- While investing in any cryptocurrency always brings risks, Algorand is generally much safer than many other blockchains. This is because Algorand uses cryptographic tools to secure its network against tampering, fraud and revision of transactions.
- Is Algorand mined?
- No, it's not. Those who own ALGO crypto can participate in block creation, with their stake or say based on the number of ALGO coins they hold. If a user chooses not to participate, they can continue holding on to their coins.
- How is Algorand different from Bitcoin?
- Bitcoin uses a blockchain through which transactions are verified and added to a record of past transactions. This chain provides decentralized trust because it does not rely on a central authority or middleman. Algorand's network operates using a different technology that does not require mining. As a result, it can handle thousands of transactions per second at very low costs.
- How many ALGO crypto coins are in circulation?
- A little more than 7 billion ALGO crypto coins are in circulation as of March 2022. The maximum amount of ALGO crypto coins is 10 billion.
- What makes Algorand a green project?
- Algorand uses PPoS, which is much more energy-efficient than the proof of work model used Bitcoin, for example, which relies on mining. That makes Algorand a sustainable cryptocurrency suitable for environmentally-sensitive operations.
Information is accurate as of March 28, 2022.