Cryptocurrency relies on three main pillars; these are decentralization, security, and scalability. However, to date, none of the major cryptocurrencies in the market has achieved these crucial aspects of blockchain technology.
Let us have a look at how crypto giants are falling short in solving the cryptocurrency trilemma.
Bitcoin, the mother of all cryptocurrencies, runs on a fully decentralized and secure blockchain, the bitcoin blockchain. Unfortunately, Bitcoin’s transactions per second (TPS) of 3.8 are still among the worst in the market. For instance, Visa transacts at a rate of 1,700 TPS which is amazingly high. If bitcoin can solve its scalability challenge and achieve a TPS of over 1,000, then it stands a chance to be the best cryptocurrency investors have been dreaming of.
Away from Bitcoin, Ripple, another legendary coin, is well known for its security and scalability properties. Unlike bitcoin, Ripple has such fantastic scalability that it can hit a TPS of 1,500 rivaling the well established Visa. Secondly, Ripple runs on one of the most secure platforms in the industry.
Unfortunately, Ripple has not achieved a fully decentralized nature. This creates an atmosphere of mistrust from investors, in turn, holding the asset down.
Cardano is still in its developmental stages. The good news is that this asset is solving all the crypto challenges by incorporating the three pillars in every step of development. When it comes of age, and unleashes its full potential, Cardano has the potential of running the crypto big boys’ club.
To address the challenges faced by crypto developers; Algorand has incorporated all the three pillars in the development process of its coin.
Firstly, the system is fully decentralized with a speedy 1,000 TPS capability. Furthermore, the system is secure and affordable. And to crown it up, users can tokenize their assets on the platform.
Algorand seeks to compete with Steller by developing a decentralized platform for instant payments. Furthermore, it offers cheap transactions – 0.001 Algos per transaction- on a secure server
These steps will attract and benefit emerging investors seeking to explore the opportunities in the affordable cross-border payment solutions.
Why does Algo stand out? Its borderless payment solution offers customers an opportunity to place their orders in advance, a feature yet to be seen in any other platform. This is achieved through the vesting schedule feature.
Algo’s Vesting Schedule Feature
A vesting schedule allows users of a platform to sign transactions in advance hence creating a plan to be followed by the platform when the transaction time comes. This process replaces the old school way used by most cryptocurrencies which require the user to make and approve transactions in real-time by pressing the send button. The vesting schedule works similarly to post-dated cheques.
What a vesting schedule does is that the payer will create several transactions and approve them on a block set for a particular time, say in one hour. When the block is verified, or the set time passes, the payee broadcasts the transaction hence receiving the money in a timely fashion.
The complexity of the vesting schedule creation makes it secure and also permits the tokenization of Algos. An excellent example of Algos tokenization is the real estate industry.
Algorand in Real Estate
Investment in real estate has been a big challenge to retail investors for centuries. This is due to high capital requirements and monopolization by institutions.
This is where Algorand comes in. Its capability to allow investors to tokenize their real estate assets through AssetBlock is an absolute game-changer.
Secondly, the company is developing a second layer on its blockchain that will enable investors to sell their digital assets to the private sector, a step that will reduce monopoly by institutions. Furthermore, the financial wing of Algorand is offering loans to its clients seeking to invest in real estate.
Initially, Algorand’s non-interactive feature was a limiting factor to many traders, however, the introduction of AssetsBlock completely bridges this gap by allowing traders to list their properties on the network and let the system do the rest. As soon as the buyer accepts the price, the transaction begins without any further involvement of the buyer.
As is evident, the cryptocurrency industry keeps on evolving by the day. Algorand is one of the crucial evolutionary developments in the industry as they introduce something not seen before.
Algorand offers secure, quick and affordable transactions solving the trilemma plague in the crypto industry. The ability to tokenize real estate assets changes the monopoly traditions of the Real Estate Industry opening it up for private investors. The system also makes the process of selling and buying property smooth and effective.
With Algorand, the dream of a borderless economy seems like a reality.
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