PRESS RELEASE

Algorand Recap – $ALGO is Crypto’s 2020 Hidden Gem

Traders worldwide are always on the lookout for the “next Bitcoin” and the “next Ethereum.” One of these hidden gem projects happens to Algorand. Long touted as one of the more credible “Ethereum killer” projects, it’s spearheaded by Turing award winner Silvio Micali. So, let’s see why this project is considered a “hidden gem.”

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What is Algorand?

Algorand uses the pure proof-of-stake (PPOS) consensus mechanism that’s unique because it’s stake-independent and assures equal selection. The block producers and validators are selected through a lucky draw, ensuring that their identities are not revealed. A combination of innovative cryptography and architecture enables Alogrand to:

  • Achieve scalability: The near-instant validator selection, along with a block production rate of 4 seconds, allows the mainnet to reach over 1000 transactions per second.
  • Achieve parallelization: The protocol allows for multiple lucky draws to be processed simultaneously that helps the entire network to scale up.
  • Be highly secure: It’s impossible to game the system since the validator selection is extremely random. Since the protocol is stake size-independent, it remains free from lottery manipulation.
  • Achieve decentralization: Since the validator selection is via a completely random lottery, Algorand organically achieves pure decentralization. 
  • Be fork-free: Unwarranted forking is a huge problem in blockchain protocol that often rips its community apart. Once a block has been tied to the Algorand chain, it cannot be altered in the future.
  • Enterprise-grade: The entire system has been built to accommodate for large-scale applications and benefit organizations.

Valuable Partnerships

Apart from its underlying technology, another thing that significantly evolves Algorand’s long-term value is the sheer number of valuable partnerships it has achieved in the last couple of years.

  • Algorand has partnered with the two biggest stablecoins in the world – Tether and USDC. Not only does this help drive up user adoption, but it also enables DeFi developers to create better in-app economies on their apps.
  • International Blockchain Monetary Reserve (IBMR) selected the Algorand platform to launch the Southeast Asia Microfinance Platform (ARC.one) and create ARCC stablecoin on Algorand. IBMR’s main goal is to support financial inclusion in Southeast Asia.
  • SFB Technologies has partnered up with Algorand to develop Marshall Islands’ Central Bank Digital Currency (CBDC) Marshallese Sovereign (SOV). This will allow the Marshall Islands to better compete with the global economy.
  • IDEX, the biggest decentralized exchange (DEX) on Ethereum, has partnered with Algorand to provide their services on that network.
  • Algorand will be using crypto tax and accounting software firm Verady’s Ledgible platform for internal accounting and auditing.
  • Assetblock, a real estate startup project, will be launching its tokenized property investment service on Algorand.
  • Algorand Standard Assets (ASA) will be used by Meld to tokenize the Australian gold reserve, issue stablecoin, and track it across the supply chain.
  • Stonize has launched its secure, decentralized, and customized digital security services on the Algorand blockchain.
  • FIDE online, the digital wing of World chess (FIDE), has selected the Algorand blockchain to store all online official tournament data and player rankings there.

A CERN spin-off organization named Planetwatch, will be developing the world’s first immutable air quality ledger on the Algorand blockchain incorporating IoT technologies to monitor the environments.

Dominating DeFi with enhanced smart contract features

Algorand smart contracts are written in a special language called “TEAL” and run in layer-1. These contracts have two components –  stateless and stateful.

Stateless Smart Contract

Stateless smart contracts provide instructions supplied within each transaction to either approve or deny it, which makes it very efficient. Users can leverage this to create a highly customized single or group of transactions with certain conditions without any intermediaries. Applications built on stateless contracts include complex independent payments, escrow system, collateralized loans, etc.  

Stateful Smart Contract 

These smart contracts deal with situations where the conditions are not attached to the transaction. In this situation, the transaction can occur only when a bunch of conditions are met.

The Algorand Workaround

Algorand resolves these problems by allowing the creator to hold the global state information of an application while user accounts contain its local state information. Only the application can change these state data. Algorand can quickly achieve this because these accounts are very efficiently generated and consulted while the operation is cheap – a balance of just 0.1 ALGO in the application account is required.

What are the benefits of this approach?

  • Multiple transactions can simultaneously change an application’s state data without blocking the other. This encourages true concurrency.
  • To store local state information, a participating account must keep a nominal balance (0.05 ALGOs per variable-value pair of local state), instead of paying a fee. 
  • Algorand has limited the state size for creator and sign-in accounts, ensuring fast block generation as before. 
  • Each account’s state size grows with more sign-ins and becomes large enough to efficiently handle big critical applications.

Algorand’s Price Action

ALGOUSD weekly chart

Algorand’s price action has been relatively uninteresting and bearish…until now. The ALGO/USD’s weekly chart has started flashing the TD sequential indicator’s buy signal with the red nine candlestick. This is usually a sign that shows that the price is going to enter an uptrend soon. We can expect the price to go up to the $0.3024 resistance line. If the buyers gain even more momentum, then we can even expect it to break past this barrier and aim to enter the $0.40 zone.

Conclusion – A Sleeping Giant?

Algorand is one of those rare projects that have a combination of a brilliant development team, sound protocols, and a healthy partnership network. Yet it has somehow managed to remain under the radar. Now, that price chart shows that the price is about to begin an uptrend, now is as good a time as any to hop on to the ALGO-express.

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Sara K

Sara is steadily working on cryptocurrency evaluations, news, and fluctuations in digital currency prices. She is guest author associated with many cryptocurrencies admin and contributes as an active guide to readers about recent updates on virtual currencies.

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