Many of you know about ALGO, but I want to enlighten those who are new to this great L1 chain. Some quick facts about Algorand:
4 second transaction finality (it’s fast) Transactions cost is ~ $0.002 (it’s cheap) 1000 TPS currently, growing to ~ 20,000 TPS in 2022 (it’s scalable) Full NFT minting support It doesn’t fork (great for NFTs) Full Smart Contract features (stateful and state-less) ASA and side-chain support (easily create tokens and CBDCs) Transactions can add up to 1kb of arbitrary text data (great for dApps) It’s uses a new PPoS algorithm to select and validate blocks (it’s decentralized) PPoS means no mining (it’s good for the envoronment, and already carbon neutral) Great developer ecosystem (lots of SDKs, documentation, IDE plugins, and an excellent indexer to easily search the blockchain) Bourgening market for dApps and NFTs (lots of room to grow) Anyone can set up a node and participate (it’s open) Excellent mobile wallet that works with WalletConnect (it’s usable and simple) Governance voting mechanism means we can upgrade the protocol over time (it’s future proof) It has a great team (MIT backed + lots of investment cash)
And finally, let me dispel some myths:
“The tokenomics are bad” – Accelerated Vesting has ended, which means the artificial downward price pressure is relaxing. Fixed supply that will dry up in about 2030 (but probably earlier), so prices will rise as more dApps use it and it becomes scarcer.
“There’s only so many relay nodes, so it’s centralized” – To run a relay node, it requires a large amount of computing power. So the Algorand foundation limits relay nodes to operators who can afford it. There are ~ 100 relay node operators, so that’s still fairly decentralized. This will grow in time. See this post for more info – https://www.reddit.com/r/CryptoCurrency/comments/pq8bgn/how_are_algorands_relay_nodes_centralized/
“There’s no dApps” – The chain is only 2 years old, and we already have exciting projects like Tinyman, Yieldly, and Lofty.ai. Many more exist or are in development
“There’s clawback and freezing features” – Yes, but only for 3rd party ASAs and CBDCs that opt-into it. Clawback and freezing does not exist on the main ALGO chain. Your keys, your tokens.
And there’s a ton more features and benefits to this chain that I don’t have room to list here (Silvio!). But overall, Algorand is a bright new blockchain with a ton of growth and potential. Check it out if you’re a developer or looking for a solid medium to long-term play.