Scalability has always been mentioned as one of the major challenges of Blockchain Technology.
To compete with centralized networks for transaction volumes, blockchains need to scale.
From a technical point, this involves an increase in throughput rate, measured in terms of TPS - transactions per second.
To break it down further, blockchain networks need to expand in terms of the number of transactions it is capable of processing each second (TPS) as well as processing power. This will enable more applications to be built on them while increasing user engagement.
Anyways, scaling solutions like Layer 1 and Layer 2 are there for the rescue. Little wonder we’ve seen massive adoption and spike in the price of coins associated with these solutions.
As you know; there’s a lot of noise and buzz in crypto.
We’ve seen Layer 1s like BNB, Solana, ADA, AVAX, Polkadot... perform incredibly well in less than 2 years.
Typically, there are 3 approaches to implementing Layer1 solutions - PoS, PoW and Sharding.
The PoS (sorry not Point-of-Sale, actually it’s “Proof-of-Stake”) ecosystem dominates around 13.95% of the crypto sector, with a cumulative market cap of over $286.5b.
One of the Layer 1 solutions I think has a good chance of performing a lot better in 2022 is Algorand.
Within the top 30 ranked coins, and a 1000 TPS soon to move to 10000 this quarter, Algorand has a current market cap of about $8.9b.
Fair enough, Algo is at just about a 10x (1000%) up from its all-time low. I know that sounds like a lot, but in crypto, that can be nothing. Previously did a 30x though.
Algorand is a budding ecosystem with lots of new projects set to launch on it in 2022. Won’t be surprised to see price fly as the ecosystem begins to churn out one solid project after the other.
Sorry Cardians, but as long as Cardano is still well above it (by market cap), ALGO is severely undervalued.
To witness rapid adoption of the Algorand network, equity needs to move from other popular blockchains. A good way to achieve this is to incentivize users. This strategy has worked for several networks who have overtime set up multi-million $ war chest to encourage builders on their chain.
Doing something great in this direction is Algomint. They’ve offered incentives of up to 1000000 ALGO for a transaction that will not cost you up to $50.
All you have to do is bridge your native BTC or ETH to Algorand and share from that pool.
The higher the TVB (Total value bridged), the more the rewards for everyone. So if you don’t own any Algo, this can be a good way to own some without even having to buy some for yourself.
All you’ll need is sign up on Algomint.io, back up with 2FA, get KYCed, add goBTC/goETH ASA to your wallet (more in the algomint docs on their website), and bridge your native BTC or ETH.
The interesting thing here is that everyone gets equal rewards, regardless of how much you bridge.
A lot more details on the Algomint incentive plan can be found here.
By the way, Algomint doesn’t have a token yet.
Anyways, I think I derailed a lot in this newsletter, but I’m sure you get that the whole idea is to get you to see the opportunities that may be lurking in the budding Algorand ecosystem.