Every day we read about some new project that promises to be "the second Bitcoin", i.e. a cryptocurrency whose characteristics suggest that it may have the same trajectory as Satoshi's work. This very year, countless candidates have been presented to go to the forefront of investments in the capitalization market, something like a version of *Game of Thrones" of the world of cryptocurrencies.
First Ethereum (ETH) was thought to be that project capable of overtaking BTC, but it remains stuck in that funnel that its upgrade has become, then there was much talk of Chainlink, Cardano and Polkadot but between the complexity of their technological approaches and their competition with each other to take over the second place held by ETH, they have failed to catch on in terms of the value of their cryptos and today they are noticeably stagnant in their proposals. Of course, among the group we must highlight Dogecoin, a project with a fervent community like a sect but with a non-existent development.
But for the moment the world dreams of not missing out on the opportunity to invest in that cryptocurrency that starts out worth pennies and in a short time surpasses the US$ 1K barrier and continues to rise like wildfire. Dreaming does not cost anything, but you have to have your feet firmly on the ground, especially recognizing that more than 60% of the crypto market capitalization belongs to BTC, far behind the rest of the contenders.
Usually the research process in the case of cryptocurrencies is initiated based on the rise in the price of this or that token, however, the essential part to introduce our money in one of these bets is to carefully study two important aspects: the technology and the team responsible for developing the project. Taking into consideration this approach, the project called Algorand presents itself as a high-impact alternative in the crypto world.
Algorand is a platform devised by the Massachusetts Institute of Technology (MIT) professor Silvio Micali (well known in the world computer community), who inspired by the success of BTC and its decentralized processes, generated an alternative that according to his conception, does not consume as much energy as the main cryptocurrencies, with the possibility of scaling thousands of transactions in a few seconds while maintaining the same levels of security as Satoshi Nakamoto's project.
To make Algorand's operation possible, it was necessary to create a new technology called Pure Proof of Stake, which selects the validators of the blocks by performing a random draw generated from the users' own computers, thus avoiding central participation in the process. This avoids wasting the energy that characterizes the method used by BTC, the so-called Proof of Work, which, according to Micali, makes transactions very slow, costly and environmentally unfriendly.
It also does not need to block working capital, one of the main characteristics of the technologies that work under the Proof of Stake modality, which leads to a depth in the centralization of the projects as well as a certain insecurity.
Algorand's native token is ALGO, at the time of the development of this publication its price was around US$ 1.12, occupying the 42nd place in the cryptocurrency capitalization market with more than US$ 3.4 billion raised. It also has a maximum supply of 10,000,000,000,000 ALGO (which will cease to be issued in 2030) and 50% of these are in circulation (data extracted from the website Coinmarketcap). On the other hand through the Algorand Foundation it is possible to observe information about the applications (thousands of them) that work with this Blockchain platform.
Algorant seems to be a very versatile technology, in fact the Marshall Islands government selected this project over Ethereum or other better known ones to launch its project for the digitization of its currency and economy, following this same approach, some officials linked to the Federal Reserve (FED) and MIT take this project as the basis of the Digital Dollar. Likewise, some companies dedicated to real estate, logistics and even NFT creators are working on these activities using the technology provided by Algorant. Likewise, the Algorand Foundation allocates 1.25 billion Algos to promote methods of using applications on this blockchain.
The governance program based on the native Algos token is still in formation, although they estimate that every crypto owner will be rewarded for the sole fact of possessing one or more of these coins in their wallet. Anyone who wishes to participate is eligible to earn more ALGOS in the future.
As I always caution, Please do not consider this post as financial advice or counsel but as further input to do your own research before investing in this or any other project.