Algorand Use Cases, Differentiators, and Competitors

Algorand Use Cases, Differentiators, and Competitors

What are the Algorand Use Cases, Differentiators, and competitors? Read on


Algorand is an L1 smart contract, a decentralized blockchain built on a Proof-of-Stake mechanism. It is designed to process transactions quickly. Algorand was founded in 2017 by Silvio Micali, a professor at the Massachusetts Institute of Technology and a noted cryptographer.

ALGO is the native token of Algorand and then it is used for Governance on the Algorand platform. ALGO is also used to reward the ones who stake coins on the Algorand platform, it is also used to pay fees on the Algorand platform.

Algorand Use Cases

Algorand considers itself the world’s most powerful and sustainable blockchain. Algorand like Ethereum can host other cryptocurrencies and blockchain projects. However, Algorand is one of the most prominent blockchain platforms trying to solve the major problems of blockchain like the scalability of the network, speed of transactions, and security of the network.

Despite the crowded field of L1 blockchain, Algorand is growing and the adoption of Algorand blockchain has also grown. Algorand blockchain is used in supporting the Bitcoin wallet in El Salvador. Added to it for the upcoming FIFA World Cup Algorand will serve as an official blockchain partner.

Use Cases of Algorand (Adoption of Algorand)

The adoption of Algorand has been an issue due to the highly competitive field of L1 blockchain. The other issue has been centralization. Algorand is more centralized than its competitors and the distribution of Algo tokens has been poor. Despite all these, there has been growing adoption of the Algorand blockchain. We must remember that Algorand is one of the youngest decentralized blockchain platforms.

Some Use Cases of Algorand are:

NFT Marketplace Using Algorand

  • Abris.io
  • AB2 Gallery
  • Zest Bloom
  • Aorist

Defi Platforms on Algorand

  • Algofi
  • Yieldly
  • Folks Finance
  • Venue One

Highest Ranked Projects on Algorand

  • AlgoFund
  • Kaafila
  • Thinkin
  • Open Fabric
  • MAGMA

Read: Algorand Price Prediction Daily

How is Algorand Different From Others?

Algorand like many other L1 blockchains has similar functionality but there are many differentiations that make Algorand unique. Some of the differentiators are:

Algorand network is designed to support a highly sustainable environment and its aim is t not to compromise with performance despite making sure the environment is not harmed.

Being an open-source blockchian anyone can view codes and contribute to the development of the Algorand platform.

Staking on Algorand is quite simple. In most blockchain platforms including Ethereum, one must hold a certain number of tokens to participate in consensus. In Algorand, anyone with an ALGO token can take part in the consensus.

Rewarding in Algorand is quite different. In most blockchain rewards happens with respect to the number of native tokens held by the participant but in Algorand, rewards are given to those who stake ALGO and participate in all votes for the duration of the governance period.

Who are the Competitors of Algorand?

One of the main issues for the growth of Algorand has been competition. The L1 blockchian is pretty crowded and there are big players who have been potential competitors to Algorand. Some of the important competitors of Algorand are:

  • Solana
  • Cardano
  • Elrond
  • Stellar
  • Corda
  • Meter
algorand
Subhash

Subhash

Subhash, Founder of Crowdwisdom360 is an MBA and a Trained Financial Advisor with an extensive background in Forecasting in Financial Services and Politics. He has appeared many times on National TV and has written for a variety of magazines on Wealth Management and Election Strategy.