Algorand (ALGO) Speculation Will End and Real-World Use Case Will Start

Algorand (ALGO) is a pure Proof of Stake Blockchain cryptocurrency protocol, which is scalable by solving the blockchain trilemma with its consensus mechanism.

Blockchain Trilemma is a belief process, which states that decentralized networks will be able to give only 2 of 3 benefits at any point in time with respect to decentralization, security, and scalability.

A decentralized ledger can either provide for “decentralization and security”, “decentralization and scalability” “security and scalability” – at least one of the benefits should be compromised due to technical challenges.  However, Algorand claims to solve the problem of “blockchain trilemma” and therefore is able to provide all the three benefits. This they say they are able to provide because of their consensus mechanism.

The Algorand platform supports smart contracts, and its consensus algorithm is based on “Pure Proof of Stake” and a Byzantine agreement protocol.

Algorand was built as a green blockchain with an environmental impact focus and is far more energy efficient than other blockchains.

Silvio Micali  when speaking at the Paris Blockchain Week Summit affirmed that Algorand is actively working to solve this so-called trilemma by pushing the limits of scalability through its PPoS algorithm.  And, it just looks like Algorand is establishing itself as a direct competitor to Ethereum.

Noteworthy, the term Blockchain Trilemma was originally coined by Vitalik Buterin.  However, Micali identified that scalability was sacrificed for security in the case of Ethereum.

When commenting on the competition between Ethereum and Algorand, Sylvio stated: “Competition is always good. I believe in democratization and meritocracy. There is room to collaborate.”

Micali pointed to how good regulation can make way for better markets.  He also stated that larger institutions are slowly understanding that cryptocurrency will be able to be a more secure way to transact.

By next year, Sylvio states that speculation will disappear and real-world use case of blockchains will start.

Otherwise, Crypto Bahamas, presented by FTX and SALT is an invitation-only event, which features Event programming covering discussions around Bitcoin, DeFi, NFTs, regulation, web3, gaming and more.

SilvioMicali, Algorand Founder will join an all-star panel of layer 1 protocol pioneers.

This will be an exclusive gathering of the leading investors and builders in the blockchain, digital assets, and web3 space.  Their focus is to create abundance by fostering greater adoption of digital assets.

One of the widely talked about use case facilitated by Algorand is TravelX, which is focused on making a better-travel industry possible.  TravelX technology makes it possible for airlines to tokenize their inventory in NFTs (non-fungible tokens) thus generating a more efficient distribution system by reducing costs, improving profitability and permitting new distribution channels and use cases.

More of such use cases are set to happen in the days to come.