The global hype manic craze of cryptocurrencies in December 2017 disrupted and revolutionized the global financial industry. Bitcoin, the first cryptocurrency, was first introduced in January 2009 after the global financial crisis.
Bitcoin was conceptualized by an individual or group of people under the pseudonym Satoshi Nakamoto as an alternative to fiat currencies. Any person could create cryptocurrencies, protected by cryptography technology, on their terms, on a decentralized blockchain network.
Every Bitcoin transaction is digitally verified and documented on a cryptography-protected network called a blockchain. Each transaction is saved on a "block" in each blockchain.
When Bitcoin and other cryptocurrencies were launched, they were free or worth pennies each. By December 2017, one Bitcoin had a financial trading value of $20,000. And the trading value of one Bitcoin was double that by this writing.
The blueprint for paperless money in the future may be found in blockchain technology. The central banks of the world are now researching how to use blockchain technology for their ends.
Cryptocurrencies and blockchain technology will shape the financial system of the future.
But what are cryptocurrencies doing for the world today?
As initially conceptualized, Bitcoin is not really useful as a digital currency for everyday people. Speculators mainly use it as a store of value and for investment. The Bitcoin blockchain is very slow and can only accommodate seven transactions per second.
Visa can accommodate over 24,000 transactions per second.
Proof-of-Work and Proof-of-Stake algorithms, which enable crypto mining, generate megaton carbon footprints that adversely affect the environment. Bitcoin mining generates over 37 megatons of carbon dioxide annually. That is the equivalent of over 81.5 million pounds.
But there are newer cryptocurrencies that are developing blockchain technologies that can accommodate 1,000 transactions in under five seconds or less. Newer cryptocurrency ecosystems that are essentially carbon negative. Newer cryptocurrency systems offer users a wide array of functions on the blockchain.
That new cryptocurrency blockchain is Algorand. Algorand is the blockchain for future finance, and it is here today.
Let's talk more about this innovative cryptocurrency technology that more people should be aware of.
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Related: What Is Tokenomics? Supply & Demand of Crypto Explained
Algorand is an open-source, decentralized, and distributed cryptocurrency network that was launched in 2017.
The white paper that conceptualized the viability of the Algorand cryptocurrency blockchain system was conceptualized by MIT professors and noted computer scientists Silvio Micali and Jing Chen in 2017. This fact is notable because Professor Silvio Micali has previously received the Turing Award for his achievements in cryptography.
Professor Micali is technically one of the creators of modern cryptography.
The Algorand blockchain system went online in 2019 with a maximum supply of 10 billion tokens called "Algo." Algo tokens power the Algorand ecosystem is the digital currency for transactions on the platform and is used to pay block validators who facilitate the platform's scalability.
Since its launch, Algorand has increased in value by over 630% due to increasing investor interest and burgeoning brand awareness.
What makes Algorand stand out from other cryptocurrencies, especially Bitcoin, is that it was specifically designed to innovate and speed up scalability and transaction times. The Algoland blockchain system can accommodate 19 transactions per second or over one million transactions per day.
Along with compressing the overall data on the Algorand blockchain to minimize data loads, Algorand is one of the few entirely carbon-negative cryptocurrencies on the market.
The most well-known cryptocurrencies on the market, like Bitcoin or Ethereum, use Proof-of-Work or Proof-of-Stake algorithms to enable block generation and data mining. The problem is that these algorithms and data-mining are energy-intensive and generate massive carbon footprints.
Algo is not mined. Instead, it is "validated" via an algorithm called "pure-proof-stake. To validate and approve new transactions and block generation in the blockchain, Algo cryptocurrency holders are randomly selected from the Algorand blockchain system.
The PPS algorithm is more efficient than traditional blockchains. Its scalable, faster, and less energy-intensive.
Algorand is a carbon-negative "green blockchain" and has been since April 2021. Due to its implementations of blockchain validation, instead of blockchain mining,
Algorand regularly purchases carbon credits that completely offset its annual carbon footprint.
Let's talk more about the features of Algorand that make it stand out from its competitors.
As we previously mentioned, the biggest drawback of Bitcoin and similar crypto coins is that they have agonizingly slow transactions speeds. Even today, the average Bitcoin transaction speed is seven transactions per second. That its why the premier cryptocurrency has been forked numerous times.
Slow transaction speeds make cryptocurrencies non-feasible for use as an everyday digital currency. Cryptocurrencies were conceptualized to be used as a currency anyone can create.
The Algorand blockchain digitally records transactions in several seconds. New blocks are validated and finalized within two to four seconds. You can transact with Algorand in real-time.
Smart contracts are algorithms that verify and contain all transaction information. Smart contracts are stored on the blockchain, are tamper-proof, and can't be forged digitally.
As previously mentioned, the bane of the cryptocurrency world is how much minable cryptocurrencies are accelerating climate change. Bitcoin alone generates over 37 megatons of carbon dioxide annually due to globally collective data mining.
And since there are over 18,000 cryptocurrencies and counting, the true scale of this problem may not be revealed for a long time, if ever.
The Argoland blockchain system is an innovatively energy-efficient and sustainable process. Its Pure Proof of Stake algorithm and validation instead of mining system requires less energy use than traditional mining.
Each PPS initiation produces 0.0000004 kilograms of carbon dioxide.
A traditional blockchain minting one NFT produces over 200 kilograms of carbon dioxide.
Algorand is and always will be forkless.
Whenever a cryptocurrency ecosystem forks, it creates a new blockchain and a "prime" blockchain system. And every successive fork creates new legacy blockchains.
So, just one blockchain with multiple forks can generate the equivalent carbon footprint of numerous and distinct blockchain systems.
Algorand is still growing and is operating in its early stages. And the creators of Algorand will be adding additional features in the coming years.
Algorand is teaming with several other cryptocurrencies to help musicians and bands use blockchain technology to securely link with investors, for example.
Unfortunately, not enough people know about Algoland because it is easier to invest in Bitcoin or Ethereum because of the hype.
Instead of engaging in hype and trend following when it comes to cryptocurrencies, consider investing in cryptocurrencies that don't pollute the environment, can be used as a currency and makes life easier.
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