Shiba Inu (CRYPTO: SHIB) It was probably the most talked about meme token of 2021. This hot cryptocurrency posted a whopping 45,000,000% gain for the entire year. Some wonder if the Shiba Inu momentum will continue into the new year, or if that crypto gamer’s success story is a thing of the past.
I’m not betting on a significant and long-lasting raise for Shiba Inu. In fact, I recently shared my top three reasons for selling this high-flying cryptocurrency. There are many other players that offer much more potential for real world use and value gains. And I’ll talk about one of my favorites right here …
An emphasis on speed and safety.
The Massachusetts Institute of Technology professor Silvio Micali created the blockchain Algorand (CRYPTO: SOMETHING) in 2017. So it is clear that there is a great deal of research behind this young crypto gamer. The goal was to develop a decentralized network with an emphasis on speed and security.
Algorand is exactly that. And that is why this blockchain is ideal for payments. Today, Algorand can process more than 1,200 transactions per second (TPS). Unlike other networks that can take a few minutes to complete a transaction, Algorand completes transactions instantly. The next goal is to reach 3,000 TPS. And eventually, Algorand hopes to achieve more than 45,000 TPS. That would make it faster than the credit card giant. Visa.
Another element behind Algorand’s speed also makes it more secure and truly decentralized. Algorand uses a pure proof-of-stake validation method for transactions. Many blockchains use proof of stake. This means that the power of validation goes to those who have the largest holdings of the particular cryptocurrency. The problem with this is that it favors the biggest forks all the time. In pure proof of participation, any interested party can be chosen at random. So this distributes the power. And proof-of-stake in general keeps things moving quickly because it doesn’t involve complex calculations required by the proof-of-work method.
I’ve talked about using Algorand for payments, but the system can host a wide variety of decentralized applications (dApps). Developers have been building everything from a low-cost crypto loan marketplace to gaming apps on Algorand. One particular feature that attracts developers and users is the network protocol structure. It is two layers, and they result in higher efficiency. Layer 1 is for basic smart contracts. Layer 2 is for more complex contracts and building decentralized applications.
Marshall Islands digital currency
Algorand has its own token, Algo, and investors can stake their stake for passive income. Developers can also create other tokens on the network. The Republic of the Marshall Islands even chose Algorand to host their national digital currency.
So, as you can see, there is a lot going on in Algorand. And the speed, security and growth potential of this crypto in the world of payments and dApps make me optimistic about its future. Algorand increased about 416% last year. Considering the massive profits made by less-useful cryptocurrencies in the real world, Algorand still has plenty of room to grow.
Of course, any cryptocurrency carries risk. This is a new industry, so it is impossible to predict whether it will gain traction in the next few years. Never invest more than you can afford to lose.
With this in mind, Algorand surely has more potential than the meme tokens that have made headlines in recent months, including Shiba Inu.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are variegated! Questioning an investment thesis, even one of our own, helps all of us think critically about investing and make decisions that help us be smarter, happier, and wealthier.