2021 was the year of Solana. Cryptocurrency increased more than 11,000% as more investors invested. And developers rushed to the blockchain. According to Electric Capital’s developer report they increased from 5 to almost 900.
Now, investors are watching for the next Solana. This means a cryptocurrency that will gain in developers, general use, and value. This crypto that could follow in Solana’s footsteps is Algorand. It increased 416% last year. And there was an increase in developers on the platform to about 200 from more than 50 a year earlier, According to the Electric Capital data. Algorand is really starting to speed up. I think it could become as popular as Solana. Read on to find out why.
New validation methods
Solana and Algorand have one main point in common. Both of them offer a new way of validating transactions. Proof of history is used by Solana. It timestamps blocks of data, and this makes the validation process more efficient. Proof of stake is utilized by a lot of blockchains. This gives validation power to people according to their holdings. But, pure proof of stake is used by Algorand. This means validation power is given to any stakeholder randomly.
Algorand’s system also makes the validation process more effective. And it is important that it favors decentralization and security. Pure proof of stake means the responsibilities of validation will not always be on the same group of high stakeholders.
Another plus for Algorand is a two-layer structure — that is because it increases transaction speed and reduces congestion. The first layer is the place for the creation of tokens and smart simple contracts. The 2nd layer is used for the making of decentralized applications and complex smart contracts.
Algorand takes care of about 1,200 transactions per second. The next goal is to get up to around 3,000 per second. Algorand is wanting to eventually get it up to 45,000 transactions per second. And transactions are completed instantly.