How to predict which cryptocurrencies can offer huge returns? I'm always looking for a solid and secure platform, a player who stands out from the rest, and room for the upside considering the available tokens and today's price. This kind of formula could lead to great things in the long run.
The good news is that there is room for more than one cryptocurrency to win. And one of those potential winners could increase fifty-fold by 2030. Which player am I talking about? A clue: A Massachusetts Institute of Technology professor founded this blockchain in 2017.
The digital currency of the Marshall Islands
Algorand (quotation ALGO) has come a long way in a few years. Today, hundreds of organizations are building decentralized applications (dApps) on the blockchain - from the world of finance to entertainment. Algorand even won the trust of the Republic of the Marshall Islands. This government is the first to create a digital national currency. And he chose Algorand as a platform to power it.
Algorand has some features that help it stand out from rivals. First, its way of verifying transactions. Many blockchains use proof of participation. This grants the power of verification to those with the largest holdings. But Algorand uses pure proof of participation. The algorithm randomly chooses stakeholders to validate - regardless of the size of their stake. That way, the power doesn't always go to the same big stakeholders. And true decentralization is achieved.
Another advantage of using Algorand is speed. This is a big problem for many dApps. At this time, Algorand can process 1.200 transactions per second. It is well on its way to processing 3.000. And it's working on a feature that will lead to 45.000 transactions per second. This will make Algorand faster than popular credit cards like Visa. Along with this speed, Algorand also achieves the completion of a transaction instantly.
A two-layer structure
One reason for Algorand's speed has to do with its structure. The first layer of the blockchain is designed for smart contracts and asset creation. Complex smart contracts and dApp development take place on the second layer. Consequently, there is less risk of congestion on the network.
Finally, Algorand is a great platform for creating non-fungible tokens. Here's why: Algorand is not fungible. This means that it cannot split into a new version. When a blockchain forks, there can be two problems for NFT holders. In one scenario, a tenant may end up with a duplicate NFT. Of course, NFTs should be unique. So, in this case, the proprietor would not know which NFT is the real one. In another scenario, validators could abandon the original blockchain and the NFTs created there would lose their value. By choosing Algorand, users avoid these potential problems.
Now let's see if Algorand could multiply by 50 from a token point of view. Today, there are 6,6 billion tokens in circulation. If Algorand were to rise 50 times from today's level, it would trade at $ 41, which would give it a market value of over $ 270 billion. This would make it the third largest cryptocurrency in the world. It is impossible to predict with certainty what will happen. But such a gain by 2030 is possible, especially considering all the benefits that Algorand already offers to cryptocurrency users.