For most investors, the cryptocurrency industry revolves around an only handful of digital assets. However, we have seen how industry stalwarts such as Bitcoin (CCC:BTC-USD) aren’t offering the exponential gains they once did. New altcoins are becoming more attractive, and some of them, including Algorand (CCC:ALGO-USD), boast incredible real-world utility.
ALGO-USD was created by MIT professor Silvio Micali back in 2017. Algorand is a new player in the crypto space and has already made waves with its hugely impressive throughput and interoperability with other networks. ALGO-USD has quickly risen to the crypto ranks and is among the top 30 cryptos by market capitalization.
Similar to other crypto networks, Algorand aims to facilitate transactions efficiently and robustly. However, it has multiple features which make it stand out from its peers. Hence, it has a spectacular growth runway ahead, making it an exciting long-term investment.
Algorand Has Strong Fundamentals
The most important aspect to consider when investing in a cryptocurrency is its fundamentals. There are countless cryptos out there, most of which rely purely on hype to move the needle. However, cryptos such as Algorand have strong fundamentals, which offer massive utility for their owners.
For the longest time, crypto networks were “closed,” offering no interoperability amongst peers. However, Algorand is different, as its Layer-1 network provides an ecosystem that allows tokens from other blockchains to communicate effectively. This allows developers to build several applications across different blockchains. It appears that collaboration among networks will be the key for Algorand in having the upper hand over its competition.
Furthermore, with smart-contract functionality, users of Algorand can engage in a variety of value-added services. The functionality adds to the platform’s use-cases, including its utility in non-fungible tokens (NFTs) and decentralized finance (DeFi) businesses.
These growth drivers fuel Algorand’s bull case at this time. With more investors looking to diversify their holdings with crypto holdings, ALGO-USD will stand out among the altcoins with the most potential.
Emphasis on Speed and Security
Algorand stands out from its peers with its remarkable speed and security. Plenty of research took place with regard to the lines mentioned above. It can process close to a whopping 1,162 transactions per second (TPS). Moreover, its average block finality is at just 4.36 seconds, giving it a night-and-day edge over the top financial institutions. Hence, it can handle transactions almost instantly, and the goal is to reach 3,000 TPS. Moreover, the network’s final objective is to achieve a dumbfounding 46,000 TPS.
Another differentiating element for the Algorand network is its pure proof of stake (PPoS) mechanism. Perhaps the main problem with a typical PPoS mechanism is that a handful of the top stakeholders can disrupt the network. Hence, the power lies with users with the highest stakes in a particular network.
However, with Algorand’s PPoS system, the power is spread among users. Moreover, the system keeps things moving without solving complicated computations in a proof of work mechanism. Hence, Algorand’s network is ideal for payments and has the potential to become a top player in some of the most lucrative crypto areas.
Bottomline on Algorand
Crypto investors looking to play the long game must invest in those assets that provide robust use-cases.
Algorand is a unique network that offers incredible functionality and interoperability. ALGO-USD shot up over 400% in value last year before, like most other cryptos, taking a tumble in January. Yet it still has massive upside potential.
Naturally, no cryptocurrency is shielded from risks, which is why it’s best to invest what you can afford to lose.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.