$Algo: Brief Dive
So… Where are we going?
$Algo-land. Actually it is Algorand, but I think Algo-land would be a great metaverse pitch, yeah? Anywho.This popular layer one has been on my radar, as well as in and out of my own personal portfolio for the last three years. Algorand ($Algo) states their vision as, “a world where everyone creates and exchanges value efficiently, transparently, and securely.” With their mission consisting of three things:
- Simplicity to drive adoption
- Eliminate barriers to prosper for all
If you are anything like me you are probably saying to yourself, “sign me up!” right?!
Right. But we cannot stop there.
Personally, I love simplicity. And I mean simplicity in most things and if it is applied to blockchain technology and Web3.0, then I love it infinitely more because this space can be extraordinarily complex.
Let’s talk about Algorand.
Algorand, founded by Silvio Micali, is run on a version of proof-of-stake. For those of you who don’t really know what proof-of-stake (PoS) really means, it’s a consensus mechanism for processing transactions and creating new blocks in a blockchain, understood? Simply speaking, you buy the token $Algo, find a digital exchange or a digital wallet that allows you to “stake” your tokens, and you earn interest. From a technical perspective, this consensus allows owners of a cryptocurrency to stake coins and create their own validator nodes. You are pledging your coins/tokens to be used for verifying transactions on that blockchain and in return you typically receive some sort of reward (i.e., 4% $Algo on Coinbase, 0.66% on Exodus, or 6.10% on Trust Wallet).
Algorand prides themselves on being the most sustainable and green blockchain.
Their unique functionality consists of the Algorand Virtual Machine (AVM) which runs on every node within the network. This functionality allows smart contracts and smart signatures to execute; which enables the brains behind the operation–the devs–to take advantage of the functionality. The language being spoken between these developers are Python and Reach. A few more unique functions of this blockchain consists of:
- Enhanced speed
- Reduced risk to the user with instant settlement through trustless execution
- Low cost to execute
While doing research on Algorand, I came across a great example of how $Algo is disrupting the technology space:
Examples of these include use-cases that AVM and Smart Contracts are solving for:
- Bond issuance
- Loan payments & Fee Executions
- Limit orders
- Programmatic recurring fees / recurring debt
- HELOC (Home Equity Line of Credit)
- Decentralized Exchanges (DEX’s)
More here if you would like to see for yourself:
My next question is typically, “who’s using Algorand?”
To my surprise, I found exactly that on their website, listed here:
Number 1 — Speed
Think, transactions per second (tps). Algorand was designed to handle upwards to 1,000 tps including smart contract transactions. In comparison, Ethereum’s tps is currently around 15–granted, this is designed to change once ETH2.0 happens, but we really don’t know when that will be.
Number 2 — Green Energy
As I stated earlier, $Algo’s founder claims that the Algorand network is the most sustainable and green blockchain present. So if you are someone who is all in on the societal impact of fossil fuels, or you are someone who wants to see a more sustainably functional digital world, then Algorand has you covered.
Number 3 — Instantaneous Transaction Finality
Jake… what? In layman terms, instant transactions. It goes hand and hand with number one, but this is a more applicable function to us peons who are not developers of blockchain or coding magicians. If I want to send my uncle’s cousin’s sister’s brother’s dog’s previous owner some $Algo, I can do that instantaneously. Vice versa.
How Can I Use $Algo?
Here are four ways it’s applicable to you:
Number 1 — Purchase the token through a DEX and HODL
Number 2 — Stake the token through a DEX or Digital Wallet and… you guessed it… HODL
Number 3 — Purchase NFTs through Algorand specific marketplaces (link below)
Number 4 — Play-To-Earn Coming Soon!
Algorand recently agreed to sponsor the Drone Racing League (DRL) for $100M, so this would be an opportunity for them to establish $Algo in the play-to-earn/play-and-earn space. Definitely something to watch.
There’s certainly much more we can discuss, but for a brief dive into what Algorand and their team are trying to accomplish, this is a great start. Personally, I like when blockchains are establishing a unique perspective, and having that “green” or “sustainable” title will instantaneously resonate with those out there searching for that. Additionally, speed, fees, and security. They’re fast, they’re cheap, and they’re secure. How much more do you need?
As always, you are the engineer to your future as these developers are the engineers to our technology. Stay vigilant on investing in projects and chains that produce, and those that are strictly speculative. As always, none of this is financial advice and please be sure to do your own research as I am not a professional in this industry.
See y’all on the next one!