Algorand is one of the best blockchains that most people have never heard of. Like Cardano or Polkadot, Algorand is a smart contract platform that uses a proof of stake consensus mechanism to validate transactions. Although it’s been flying under the radar for years, a handful of new developments could bring Algorand into the mainstream. Certainly we’re already seeing signs of growth.
Since January 1st Algorand has already attracted 6 million new users to the network. That’s a 35% increase from the 17 million users Algorand had at the end of 2021. There are plenty of good reasons why more people are using the network.
For one thing, in January Grayscale added Algorand to its assets under consideration list. This means Grayscale investment is considering creating an ALGO fund, just like their popular Bitcoin and Ethereum funds. Typically, once Grayscale launches a product for a blockchain, that token rallies since more investors can buy it.
As bullish as a Grayscale fund would be, what we’re really excited about is a new upgrade that Algorand devs released a few weeks ago. One of the most important parts of the new update is that it will add support for smart contract calling. This will allow developers to create smart contracts that can easily interact with one another, greatly simplifying the process of launching new applications.
The upgrade also lays the framework for future interoperability with other blockchains. The Algorand team used the update to introduce Falcon Keys, a new technology that will make it easier for developers to create cross-chain bridges. Falcon Keys will also be used to make Algorand accessible on low-power devices, like smartphones and smart watches.
Ethereum will be the first blockchain targeted for interoperability. In February, the Algorand Foundation awarded $20 million to the software development firm Applied Blockchain, to create a link between Ethereum and Algorand. Named the London Bridge, it will allow seamless token transfers between the two chains.
Bridges are one of the most important pieces of blockchain technology that teams are working on right now. Terra Luna is developing the Terra Bridge, and entire projects like Polkadot and Cosmos are built around the idea of connecting blockchains with one another.
More information about the update is available on Algorand’s official Twitter page. Although it doesn’t get the press coverage of Cardano or Ethereum, Algorand is one of the most promising smart contract platforms and we expect to be hearing a lot more about it in the coming months.
Algorand’s ALGO token is supported in Exodus.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.