Shiba Inu (CRYPTO: gray hair) It was probably the most popular meme token of 2021. This cryptocurrency recorded a whopping 45,000,000% profit for the entire year. Some are wondering if the Shiba Inu momentum will continue into the new year – or if this crypto player’s success story will be a thing of the past.
I’m not betting on a huge and permanent increase for Shiba Inu. In fact, I recently shared my 3 reasons for selling this high-altitude cryptocurrency. There are plenty of other players out there that offer much greater potential for real-world use and value gains. And I’m going to talk about one of my favorite things here…
Focus on speed and security
Blockchain was created by Professor Silvio Micali of the Massachusetts Institute of Technology Algorand (encode: something) Back in 2017. So, it is clear that there is a lot of great research behind this young cryptocurrency player. The goal was to develop a decentralized network with a focus on speed and security.
Algorand is just that. Which is why this blockchain is ideal for payments. Today, Algorand can process more than 1,200 transactions per second (TPS). Unlike other networks that may take a few minutes to complete a transaction, Algorand completes transactions instantly. The next goal is to reach 3000 TPS. Ultimately, Algorand expects to achieve more than 45,000 TPS. This would make it faster than a giant credit card Visa.
Another element behind Algorand’s speed makes it truly more secure and decentralized. Algorand uses a pure proof of stock validation method for transactions. Many blockchains use proof of stake. This means that the power of validation goes to those with the largest holdings of the particular cryptocurrency. The problem with this is that it favors the biggest holders of all time. In pure proof of stake, any stakeholder can be chosen at random. So, this spreads the power around. Proof of stake in general gets things moving quickly because it doesn’t involve the complex calculations that proof of business requires.
You’ve talked about using Algorand for payments, but the system can host a variety of decentralized applications (dApps). The developers have built everything from a low-cost cryptocurrency lending marketplace to gaming apps in Algorand. One of the special features that attract developers and users is the network protocol architecture. It has two layers – and it leads to more efficiency. Layer 1 of the underlying smart contracts. The second layer is for more complex contracts and building decentralized applications.
Marshall Islands digital currency
Algorand owns its own token – Algo – and investors can share their properties to earn passive income. Developers can also generate other tokens on the network. The Republic of the Marshall Islands even chose Algorand to host its national digital currency.
So, you see, a lot is happening in Algorand. The speed, security, and growth potential of this encryption in the world of payments and decentralized applications makes me optimistic about its future. Algorand increased about 416% last year. Given the massive gains made by cryptocurrencies of less interest in the real world, Algorand still has plenty of room for growth.
Of course, any cryptocurrency carries risks. This is a new industry, so it is impossible to predict whether it will make headway in the coming years. Never invest more than you can afford to lose.
With this in mind, Algorand definitely has more potential than the tokens that have been making headlines in recent months – including the Shiba Inu.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.