A few days ago, Charles Hoskinson sent out a tweet about Algorand, an upcoming project that has raised $62 million in new funding. His tweet insinuated that Algorand is a real competitor to Cardano (ADA). While Charles received mixed reactions with regards to this tweet, it would be worth looking at this project more closely. The fact that it caught Charles’s eye means that it could be a worthy investment in the future.
What is Algorand?
As per their website, Algorand is a blockchain project that solves most of the problems that blockchain technology faces today. For instance, its protocol is designed to maintain performance, while scaling to billions of users in a decentralized environment. The protocol also allows transaction certainty since it provides transaction finality without the need for forking. To quote the Algorand website,
“Algorand is the first blockchain to provide full and immediate transaction finality with no forking. This removes the uncertainty present in other blockchains, and provides transactional integrity for businesses who build on the Algorand platform.”
Similarities to Cardano
One of the striking similarities between this project and Cardano (ADA) is that they are both grounded on the science philosophy and academic research. The two are also quite similar in that they provide a solution to the problem of scalability, without compromising on security and decentralization, which makes them useful for business once they are both complete.
Is it a threat to Cardano?
Algorand could be a competitor to Cardano, but it is not a threat. That’s because a threat would mean that Algorand could dwindle Cardano’s chances of success. However, that is not the case. That’s because the market is huge and will accommodate not just Cardano and Algorand, but a host of other cryptocurrencies as well. That’s because the world is leaning more towards decentralization.
Society is demanding more openness and transparency, and business will have to adapt and move more towards decentralized systems. This means that in the future, trillions of dollars will be flowing through decentralized systems. As this happens, most decentralized platforms that can provide security, scalability, and cost-efficiency will benefit. It’s just like in traditional markets. Industries tend to accommodate a number of large players and they all grow. It’s never a zero-sum game, and crypto will not be an exception.
As a matter of fact, with projects like Algorand coming up, it will create more awareness about the power of blockchain technology in changing different industries. This will play a role in the adoption of Cardano (ADA) for real-world applications. For Cardano (ADA) investors, projects like Algorand are a chance at diversification. Both of them are long-term projects that will reward investors who can hold on for the long haul. They both have the answers to problems that are hindering the long-term adoption of decentralized applications.
Sometime back, Charles Hoskinson stated that they are creating a trillion dollar project. This might take time but once it happens, long-term investors stand to reap the biggest reward. Double digit Cardano is a possibility in the future.