Algorand (CRYPTO: ALGO) is a relatively young player in the cryptocurrency market, having been founded by Massachusetts Institute of Technology professor Silvio Micali in 2017. Algorand’s main network became life in mid-2019, offering this cryptocurrency network only approximately a year and a half in the market.
Yes, the bitcoin world moves at a breakneck pace. In the world of cryptocurrencies and blockchain networks, a year and a half maybe a lifetime. So the fact is Algo, the Algorand network’s native coin has risen to a top-25 cryptocurrency by market valuation is noteworthy.
Investors point out that the whole network does have several unique characteristics that set it apart from its bitcoin contemporaries.
Interoperability Is Becoming Critical
Cryptocurrency networks have largely concentrated on creating unique blockchain networks that offer innovative benefits to users & investors. Due to the emergence of rather “closed” cryptocurrency ecosystems, investors are now compelled to choose between one crypto or blockchain network and another.
A paradigm change is taking place in the context of Algorand. It’s well-known for being able to work with several blockchain networks.
Algorand devised a method for launching multichain projects. Developers can create a variety of applications that function on several blockchains. This characteristic, termed interoperability, enables a level of interconnectedness not found in most other blockchains. External collaboration could be the way blockchain networks evolve in the future.
The utility is provided via smart contracts and even use cases.
Algorand is one of the cryptocurrency systems that is currently gaining traction due to its smart contracts as well as use cases. Indeed, bitcoin users’ ability to participate in diverse value-added activities is becoming increasingly crucial.
To facilitate transactions without a centralized third party, the Algorand network employs two types of smart contracts: stateless smart contracts & stateful smart contracts. Stateless agreements are one type of smart contract that investors may be aware of. When specific agreed-upon requirements are met, smart contracts enable certain transactions to be permitted. On the other side, a stateful smart contract allows data to be retained indefinitely and used for a wider range of applications.
A Room To Expand
The good price momentum that Algo has had recently is one of the things that cryptocurrency traders and investors will like about it. Over the last year, it’s been a five-bagger, with a double-up in the last three months.
Algorand has risen in the crypto rankings as a result of its expansion.
The listing of Algo on major exchanges has been one of the fundamental drivers of this trend over the last year. Algo was listed on Coinbase Global in June of 2020, giving the cryptocurrency as well as its network near-instant credibility. In addition, the main crypto exchange in South Korea launched assistance for the Algo/South Korean won exchange pair this week, sending algo prices higher.
As more investors want to diversify their cryptocurrency holdings, Algo stands out as a large-cap choice for those interested in what the Defi sector has to offer, reports Nasdaq.com