Shiba Inu (CRYPTO: SHIB) probably was the most talked-about meme token of 2021. This hot cryptocurrency posted a whopping 45,000,000% gain for the full year. Some wonder if Shiba Inu’s momentum will continue in the new year — or if that crypto player’s success story is a thing of the past.
I’m not betting on a significant and lasting increase for Shiba Inu. In fact, I recently shared my three reasons to sell this high-flying cryptocurrency. There are plenty of other players that offer far more potential for real world use and gains in value. And I’ll talk about one of my favorites right here…
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An emphasis on speed and security
Massachusetts Institute of Technology professor Silvio Micali created the blockchain Algorand (CRYPTO: ALGO) back in 2017. So, it’s clear there’s a lot of great research behind this young crypto player. The goal was to develop a decentralized network with an emphasis on speed and security.
Algorand is exactly that. And that’s 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 as long as a few minutes to complete a transaction, Algorand completes transactions instantly. The next goal is to reach 3,000 TPS. And eventually, Algorand expects to achieve more than 45,000 TPS. That would make it faster than credit card giant Visa.
Another element behind the speed of Algorand 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 validation power goes to those with the biggest holdings of the particular cryptocurrency. The problem with this is it favors the biggest holders all of the time. In pure proof of stake, any stakeholder can be chosen randomly. So, this spreads the power around. And proof of stake in general keeps things moving quickly because it doesn’t involve complex computations required by the proof of work method.
I’ve spoken of 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 lending market to gaming applications on Algorand. One particular feature that’s attracting developers and users is the network’s protocol structure. It involves two layers — and they result in more efficiency. Layer 1 is for basic smart contracts. Layer 2 is for more complex contracts and the building of decentralized applications.
Marshall Islands digital currency
Algorand has its own token — Algo — and investors can stake their holding to earn passive income. Developers also can create other tokens on the network. The Republic of the Marshall Islands even chose Algorand to host its digital national currency.
So, as you can see, a lot is happening on Algorand. And this crypto’s speed, security, and potential for growth in the world of payments and dApps makes me optimistic about its future. Algorand increased about 416% last year. Considering the massive gains made by cryptos with less real-world utility, Algorand still has plenty of room to grow.
Of course, any cryptocurrency carries risk. This is a new industry so it’s impossible to predict if it will gain ground in the coming years. Never invest more than you can afford to lose.
With this in mind, Algorand surely has more potential than meme tokens that have made the headlines in recent months — including Shiba Inu.
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