Algorand is an L1 smart contract, a decentralized blockchain built on a Proof-of-Stake mechanism. It is designed to process transactions quickly. Algorand was founded in 2017 by Silvio Micali, a professor at the Massachusetts Institute of Technology and a well-known cryptographer.
ALGO is the native token of Algorand and therefore is used for governance on the Algorand platform. ALGO is also used to reward those who bet coins on the Algorand platform, it is also used to pay taxes on the Algorand platform.
Algorand Use Cases
Algorand considers itself the most powerful and sustainable blockchain in the world. Algorand like Ethereum can host other cryptocurrencies and blockchain projects. However, Algorand is one of the most prominent blockchain platforms that seek to solve the main problems of blockchain such as network scalability, transaction speed, and network security.
Despite the crowded field of the L1 blockchain, Algorand is growing, and adoption of the Algorand blockchain has also grown. The Algorand blockchain is used to support the Bitcoin wallet in El Salvador. Added to it for the upcoming FIFA World Cup, Algorand will act as an official blockchain partner.
Algorand Use Cases (Algorand Adoption)
Algorand adoption has been a problem due to the highly competitive field of the L1 blockchain. The other issue was centralisation. Algorand is more centralized than its competitors, and the distribution of Algo tokens has been poor. Despite all this, there has been a growing adoption of the Algorand blockchain. We must remember that Algorand is one of the youngest decentralized blockchain platforms.
Some use cases of Algorand are:
NFT Marketplace using Algorand
- AB2 Gallery
- Flowering of the rind
Defi platforms on Algorand
- Popular finance
- Headquarters One
Projects with the highest score on Algorand
- Open fabric
How is Algorand different from others?
Algorand like many other L1 blockchains has similar functionality but there are many differentiations that make Algorand unique. Some of the differentiating factors are:
The Algorand network is designed to support a highly sustainable environment and its goal is not to compromise on performance, while ensuring that the environment is not harmed.
Being an open source blockchian anyone can view the code and contribute to the development of the Algorand platform.
Betting on Algorand is quite simple. In most blockchain platforms, including Ethereum, you must hold a certain number of tokens to participate in the consensus. In Algorand, anyone with an ALGO token can participate in the consensus.
Rewarding Algorand is very different. In most blockchain rewards occur relative to the number of native tokens held by the participant, but in Algorand, prizes are given to those who bet ALGO and participate in all voting for the duration of the governance period.
Who are Algorand’s competitors?
One of the main issues with Algoland’s growth has been competition. The blockchian L1 is quite crowded and there are great players who have been potential competitors of Algorand. Some of Algorand’s main competitors are: