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Algorand has made steady gains throughout its blockchain life. Born from a mission to make blockchain green and driven forward by strategic partnerships, this token has seen a 10% increase in just 24 hours.
What is Algorand?
Algorand (ALGO) is both a digital currency and blockchain platform. The Algorand platform is designed to process many transactions quickly, similar to a major payments processor like Mastercard or Visa. Algorand can host other cryptocurrencies and blockchain-based projects, making it a direct competitor to Ethereum. ALGO, the platform’s native currency, is used to secure the Algorand blockchain and pay processing fees for Algorand-based transactions.
Algorand is an open-source blockchain, meaning that anyone can view and contribute to the platform’s code. Algorand uses an operating protocol called pure proof-of-stake (PPoS), which recruits network operators from the entire pool of ALGO coin holders.
The Algorand platform and accompanying cryptocurrency were founded in 2017 by Silvio Micali, a professor at the Massachusetts Institute of Technology and noted cryptographer. TWorhe total supply of ALGO is capped at 10 billion coins, with about 7 billion ALGO already circulating.
The Future with Alogrand
There are a few speculative reasons we could cite for why Algorand is seeing growth today. This growth is especially impressive when so many cryptos are experiencing losses. One reason is that Wormhole, a cross-chain bridge backed by The Jump, has recently launched support for the Algorand blockchain. Wormhole acts as a bridge between blockchains that have difficulty communicating with one another. For instance, if you are holding assets on the Ethereum blockchain but want to transfer them to Solana, this is not an easy process because of the difference in the blockchain tech. But if these blockchains are supported by Wormhole, the tokens in question can be sent through Wormholes Portal Bridge. During this process, the token is secured in a smart contract, and a “Portal-wrapped” version of that token is minted and available to trade on the new chain (in our example’s case, Solana). The support from Wormhole increases Algorand’s utility and versatility.
Another possible reason for the jump is that Algorand recently made some headlines with its announcement of a partnership with FIFA. The world’s football association has been an early adopter of blockchain technology, even tokenizing tickets for the 2018 World Cup. According to FIFA, “the agreement means Algorand will become the official blockchain platform of FIFA and provide the official blockchain supported wallet solution. As per the sponsorship agreement, Algorand will be a FIFA World Cup Qatar 2022 Regional Supporter in North America and Europe, and a FIFA Women’s World Cup Australia and New Zealand 2023 Official Sponsor.” This is not only incredible news for Silvio Micali and company but also for blockchain tech at large. Being embraced by a worldwide, renowned, and successful sports organization could be part of the rising tide that lifts all boats.
It remains to be seen how Algorand performs in the long run, but we can see some major wins today, and the price spike to match.