Check the main advantages and disadvantages of the ALGO coin. Also, we collect price predictions from crypto experts for Algorand in 2020–2025.
Algorand (ALGO) history and basics
Choosing a profitable cryptocurrency for investment is the key to the financial success of any crypto enthusiast. By the way, most of them prefer to work only with Bitcoin and the most popular altcoins. At the same time, on the rest of the coins, due to their high volatility you can make a fortune.
One of the main problems with legacy blockchains like Bitcoin or Ethereum lies in performance and scalability issues. Slow transactions hinder the widespread use of cryptocurrencies. This makes transactions quite expensive, although cheaper than traditional bank transfers.
Advanced blockchain systems are primarily aimed at addressing the current disadvantages of decentralized networks. Algorand (ALGO) cryptocurrency is one of these developments.
Technically, this is an attempt to solve the “blockchain trilemma”, which has already become a classic. It states that decentralization, scalability and security cannot be effectively combined within a single platform. At least one of these components will need to be trimmed to suit the needs of others. In other words, a large and powerful decentralized platform will almost always have security and scalability issues. Actually, as a denial of this trilemma, the Algorand project was launched.
ALGO is conceived and developed by an experienced team of world-class experts in the field of cryptography, management and marketing from the USA, i.e. Silvio Micali, Steve Kokinos and Sean Ford. Algorand has stronger competitors like Cardano or Zilliqa that have developed their own decentralized protocols. But that does not mean that the project’s future has bad perspectives. The fall at the beginning of trading is due to the fact that the first investors greatly overstated the price, so many of them began to sell it immediately, fixing the profit. The massive selling, as a result, triggered a new wave of selling, which caused the rate to collapse heavily, and many secondary investors suffered serious losses. But lately, natural steady growth of altcoin can be observed on the crypto market.
The first auction took place in June 2019, where 25 million tokens were sold at a cost of $ 2.40. After that, ALGO coin began to be officially listed on exchanges. The coin immediately attracted attention. The main work on the project has already been completed. More than $ 60 million of investment was gathered, bearing in mind ALGO token price and the issue of tokens, the project may enter the TOP-3 in terms of capitalization in the coming years.
Algorand price predictions for 2020–2025
As of today, September 24, 2020 ALGO price is $0.27.
As the market is pretty volatile, o predicting the price of any digital coin would be a complicated task. But the experts are pretty optimistic about this cryptocurrency.
#1 Gov Capital
Gov Capital states that ALGO price has been demonstrating a declining tendency so the future asset price is predicted at $0.000000 after a year meaning that if you invested $100 now, your current investment may be in vain in 2021.
#2 Digitalcoin
According to Digitalcoin prediction, ALGO coin price will definitely increase in the future. The price of 1 ALGO can roughly be up to $0.61564266 in 1 year. Digitalcoin considers that the lowest price of Algorand in the future may become $1.17 while the highest ALGO price is predicted at $1.42.
Wallet Investor is of the view that ALGO is a significant 1-year investment. If you are thinking of digital currencies with a good return, ALGO can be a beneficial option. Wallet Investor also expects a long-term increase of the asset sharing the ALGO price prediction for 2025 at the rate of $1.649 and believing in the long-term earning potential by +89.17% in a year.
Based on the Algorand historical price statistics, Coinarbitragebot provides ALGO price prediction at $0.66990 at the end of 2020 having the potential price growth up to $0.81895 exactly in a year. In the next 3 years ALGO price could reach $4.79403 and the lowest one could be $0.13495.
Specific feature of “pure” Proof of Stake
PoS algorithm, known as the Byzantine Agreement, has been in use for a long time and made it possible to move away from energy-consuming PoW and made mining possible with a wallet. Users receive a reward for participating in the verification of transactions.
The project developers claim that they are the first who were able to implement true PoS. An unprecedented level of scalability, decentralization and security of the blockchain is also announced.
PoS is usually implemented using one of 2 methods:
- DPoS when the community chooses the validators and the “weight” of the vote is tied to the wallet balance. Then the selected nodes are engaged in confirming transactions and actually control the network;
- BPoS (Bonded Proof of Stake) means that a certain deposit is frozen for a while, in case of violations by the validator it can be fined.
Both approaches to PoS implementation are not without drawbacks. The main one is the high requirements for potential validators, most of the network participants cannot claim this role. PPoF (Pure Proof of Stake) solves this problem.
In PPoF, any participant with an ALGO account can be selected as a validator. The amount of cryptocurrency on the account only affects the likelihood that it will be chosen. At any time, you can withdraw from the number of applicants, there are no requirements for insurance deposits or guarantee fees. This improves safety. A potential attacker cannot even approximately guess who will become a validator, while it is impossible to hack all network participants.
Other technologies and capabilities of ALGO are the following:
- Solving the problem of information storage. As the size of the blockchain increases, storing the blocks will require more and more space. This problem is solved by Vault technology, which allows increasing the degree of scaling by connecting new users. They will need to download only part of all the information to their computer in order to be able to participate in the further creation and storage of blocks.
- Pixel digital signatures. It is an attempt to increase throughput via new technologies. The system will be able to aggregate several digital signatures in one message and convert them into a more compact record of a given length. It will also protect earlier entries from signature forgery.
- Self-verification of transactions. It is based on the division of information storage functions and its confirmation. Users will be able to check other transactions without having to dispose of a certain balance on their account.
- Atomic swaps.
Algorand developers have once again updated the network. Algorand Product Manager Paul Riegle highlighted three key features of the latest update: the addition of stateful smart contracts features to the baseline, fast catchup, and rekeying. In June 2020, Algorand and Blockstack announced that they are developing Clarity, a new programming language for smart contracts that can enable direct communication between different blockchains.
On the whole, experts point to positive growth prospects. This is justified by the influx of large money from institutional investors who show high interest in large altcoins. By the way, if you look at altcoins from a different angle, then in the future, the depreciated assets may have more investment potential than the largest ones.
Algorand looks like a solid project primarily because of the team working on it and the good idea. Successfully completed private token sales only highlight this impression. The detailed technical component is an advantage, due to which developers are going to gain a foothold in the market. For this, the project is even forgiven for the lack of a clear roadmap. The Marshall Islands will use the Algorand blockchain to launch the national Sovereign cryptocurrency (SOV), because Algorand company has already implemented several scenarios for the mass use of its protocol.
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