Algorand Coin Review 2022
Such an approach has been praised by regular crypto users, academia, and big institutions alike.
Crypto developers all over the world are trying to solve the everlasting blockchain trilemma, which has been proven to be quite a task. Is it possible to create a fast, scalable, yet highly secure cryptocurrency that is environmentally friendly at the same time?
The Algorand team seems to have ticked off all these points. So, let’s see what this blockchain is all about and how it can benefit the users.
About Algorand
Algorand was created in 2017 and is an institutional-grade green blockchain. It’s a decentralized layer one solution where you can build your own dApps and complex smart contracts. Algorand is one of crypto’s most powerful blockchains, trusted to be the model of choice for thousands of organizations worldwide.
This project raised over $120 million in several fund-raising campaigns during 2018 and 2019. Additional funding was secured thanks to investments from various Venture Capital Firms.
Algorand’s mainnet was launched in June 2019 with all main components up and running. The network’s native currency is ALGO, which is used for all blockchain actions like staking, paying transaction fees, and governance.
This project aims to create a borderless system of trust through decentralization where people from all over the world can exchange value transparently and securely. The network supports complex smart contracts, NFTs, Web3, and DeFi. And it does all that by being eco-friendly and having no environmental impact. Its commitment to sustainability has actually resulted in Algorand becoming carbon-negative in 2021.
Algorand (ALGO) Team
The team behind this project is versatile and consists of cryptographers, mathematicians, scientists, researchers, and other industry experts.
Algorand was created by Silvio Micali. He is a professor at MIT who oversees the Computer Science and Electrical Engineering departments. Silvio is an excellent cryptographer and co-founder of many security protocols being used today, such as Zero-Knowledge Proofs and Verifiable Random Functions.
Besides Mr Micali, the leadership team also includes W. Sean Ford, the CEO and Paul Riegle, the company’s CPO. Seven other team members are responsible for research, business operations, and engineering tasks. Algorand works with dozens of advisors, economic, senior, scientific, and cryptocurrency consultants.
Two organizations are essential to the operations of Algorand. The first one is the US company Algorand Inc. which built the network. There is also the non-profit organization Algorand Foundation that oversees all development and is based in Singapore.
The Algorand Foundation has its own team of industry experts that develop the Algorand platform. The Chairman of the Board is Kieron Guilfoyle, backed by Pino Persiano and Staci Warden. 40+ other individuals make up the wider team.
Algorand (ALGO) Roadmap
Algorand doesn’t have a roadmap on its official website or social media. Therefore, pieces of information about future development must be collected from interviews with its team members and various blog posts and announcements.
In one such interview at MIT, Algorand founder Silvio Micali announced a 10x scalability upgrade of the system in Q3 of 2022, which should increase the throughput to 10.000 transactions per second.
The second vital novelty is the introduction of decentralized token bridges representing interoperability hubs for Algorand to communicate with other crypto blockchains. Cross-chain communication was also on Algorand’s mind back in March 2022 when they expanded the platform’s smart contract functionalities. Instead of smart contracts having to be integrated into the native blockchain, it’s now possible to establish contract-to-contract calls with the needed smart contract. This new method greatly increases the speed of communication.
Algorand is negotiating with different world governments to become the network of choice for their Central Bank Digital Currencies (CBDCs). The Marshall Islands, for example, are already relying on the strengths of this blockchain.
Algorand (ALGO) Network
Algorand is a Proof-of-Stake coin that uses a customized consensus algorithm better known as Pure Proof-of-Stake (PPoS). This system ensures excellent speed, fast block times, cost-effectiveness, and top-notch security features. New blocks are generated once every 4 to 4.5 seconds, and the blockchain can handle around 1.000 transactions per second. Network fees are minimal and cost approximately $0.0004 on average.
Algorand is a project which has solved the infamous blockchain trilemma. The perfect chain is supposed to be secure, scalable, and decentralized. Developers, however, have never managed to maintain all three positions. Until now!
Algorand’s validators are selected randomly from all holders of the ALGO coin. Anyone can be chosen to add new blocks to the chain. This makes the system both decentralized and secure since no block producers have any advantage over the rest.
Validator nodes are officially called Relay nodes, which are operated mainly by Algorand Inc. and the Algorand Foundation. This model ensures a scalable blockchain. Relay nodes select block producers from a list of all token holders (also known as Participation nodes). The current total node count is around 1.400.
Algorand aims to become the network for a global financial system. To achieve that, their TPS count needs to increase further. Algorand’s proposal is a technology called pipelining. This is how it works: as soon as a new block is proposed by a participation node, the network will consider it valid and a part of the blockchain. The result is a drastically bigger throughput of 46.000 to 50.000 transactions per second.
In a decentralized system where blockchain data is stored locally on all computers that are part of the network, pipelining will create a much bigger blockchain and require more significant storage requirements. That will then cause centralization because not all node operators will have the hard drive capacity to run their servers.
To battle fears of centralization, Algorand has developed the Vault. It’s a blockchain compression technology that minimizes local storage needs by distributing the blockchain across multiple network participants. Nodes can delete old account balances and maintain proper records without having to verify all historical blocks.
How to Mine Algorand (ALGO)
Since ALGO is a PoS type of coin, the asset cannot be mined, but rewards can be earned from staking. In fact, Algorand is one of the most painless cryptocurrencies to stake, and everyone can do it. You only need to send at least 1 ALGO to an appropriate wallet, and that’s all. Staking rewards are then paid out automatically.
Algorand doesn’t have any fixed lockup periods or slashing feature, so you can access all your coins whenever you need to. Over 51% of the current ALGO supply is eligible for staking. The Annual Reward Rate (APR) is over 7% through the Algorand Governance program. This rewards system has tens of thousands of participating individuals.
Participation nodes receive 0.6 ALGO for each new block that gets added to the blockchain. Relay nodes don’t participate in the staking process and don’t need to stake coins.
ALGO Price Prediction For 2022
Algorand is trading at around $0.28 as of early September 2022. Forecasters and investors are bullish on the asset as soon as the next bull market starts. Here are some of their thoughts:
Gov Capital
According to market analysts from Gov Capital, ALGO’s value will slightly decline in the short term. They expect the price to drop to $0.24 in the next two weeks. Their 12 months prediction is more optimistic, though. At the end of December 2023, they predict a value of $0.75/coin.
Let's go into a little more detail. Gov Capital believes ALGO will move above the $0.50 barrier for the first time in October 2022. From that point on, there look to be plenty of uptrends all the way to September 2023, when the asset is expected to be worth over $2.
The following months should see the price bounce between $1.80 and $2.30/coin before it explodes again in September 2024 and breaches the $4 barrier. Bullish trends are expected throughout 2025, 2026, and 2027 with the maximum valuation going above $9.5 per ALGO.
DigitalCoinPrice
Data analysts from DigitalCoinPrice are not as bullish as Gov Capital but still believe the asset is a good investment long-term.
According to their forecast, ALGO’s max price could be $0.40 in 2022. They believe investors will need to wait until 2025 before this cryptocurrency breaks the $0.50 mark. DigitalCoinPrice analysts expect trading to happen in the $0.50 to $0.80 range throughout 2026 and 2027.
ALGO could go above $1 in 2028, where the maximum price is believed to be $1.04. 2029 and 2030 show bullish signs, with the values moving from $1.13 to the new all-time high of $1.59 expected in 2031.
Where To Buy and Store Algorand?
ALGO tokens are listed on many popular cryptocurrency exchanges. The coin is also supported in various desktop, mobile, hardware, and web wallets.
Algorand Wallets
Algorand’s official software client is the Pera Wallet. It’s a mobile app available for Android and iOS that supports buying, storing, and swapping ALGO and other digital assets. Another outstanding mobile wallet is Trust Wallet, which comes with multicurrency support.
If you want to up your security, you could use a Ledger hardware wallet that allows easy storage and staking features. Atomic Wallet is a desktop and mobile app that has integrated ALGO into its multicurrency client.
Last but not least, there is the MyAlgo Wallet, which is a web wallet.
Algorand Crypto Exchanges
The best exchange rates for ALGO can be found on ChangeNOW. The platform does instant crypto swaps but also supports purchases with fiat and fixed-rate exchanges.
There are many other markets where you can acquire ALGO. The most significant trading volume is recorded on Binance, Coinbase, KuCoin, Gate.io, Kraken, Huobi Global, FTX, and Bitfinex, among others.
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