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Why we have chosen the Algorand Blockchain for our products

Reasons to use Algorand for NFTs

Obviously there are many Blockchains offering smart contracts and the possibility to mint and trade NFTs. In this article we will explain why we have chosen Algorand and how it is different to other competing Blockchains. 

Algorand is the only Blockchain that successfully solves the Blockchain Trilemma. Also, the consensus protocol can be easily upgraded to better fit the future needs of users. So there are many upcoming advantages besides the already existing ones.

Low transaction fees

One of the most important things to have smooth NFT trades are the transaction fees. Algorand has meager fees of 1/1000 Algo per transaction. Obviously, it is one of the lowest transaction fees in the whole Crypto-Space.

High Transaction speed

The speed of Algorand Blockchain will increase during 2021 from 1.000 to 46.000 transactions per second, making it one of the fastest decentralized Blockchains.

Unforkability

A fork is a split in the Blockchain, which results in a new updated version of the protocol. Some users will continue to use the old Blockchain and follow the old rules; others will adopt the new rules. The two Blockchains began at the same block and performed separately from a certain point. 

So the older blocks are common for both chains. Therefore duplicates of the earlier existed NFTs appear on, the newer chain. This is a problem because NFTs should stay unique. If most people switch to the more recent version of Blockchain, the NFTs on the original chain become worthless. After all, uniqueness is the main idea behind NFTs, isn’t it?

Read more about Unforkability; Mathematical proof 

ETH Hard fork Meme NFTs

Fractional NFTs

Fractional NFTs can be broken up into smaller parts during the minting process to make them more accessible to multiple investors. 

Imagine some very famous artist releases his masterpiece, and it gains in value to multiple millions. A tiny number of people will invest in this masterpiece caused by a lack of money. If you break up the artwork into smaller pieces, it can have multiple owners, each owning a particular part of the NFT. Artists can therefore monetize their artwork in a more efficient matter and have better access to fundings. Collectors will be able to participate with smaller amounts of money in highly demanded tokens. 

Atomic Transfers

If Alice and Bob want to trade two different assets, they need a trusted intermediary to make sure both sides receive what they agreed to; It is the widespread traditional way.

Algorand revolutionizes this kind of transaction and enables trustless swaps called Atomic Transfers. It allows complete strangers to trade assets with the guarantee to receive promised assets.

In our case, this function creates contracts between two users to swap an NFT for another NFT. Without Alice or Bob to have to send their asset first, in the hope the other will send the promised counterpart. Also, the intermediary is not needed.

Atomic Transfers have multiple other benefits besides what we talked about.

Read more

Emerging Ecosystem

Hundreds of prestigious organizations are building on Algorand. The Algorand Foundation is doing its best to fund promising projects and contribute to the ecosystem’s growth.

First, it is a good sign if well-managed companies choose a Blockchain. Even Governments have started to take advantage of Algorand. Second, their projects will draw more people into Algorand’s ecosystem, which will benefit us in the form of more potential users of our platform.
Algorand already has a very active, engaged, and outstanding community of true believers doing their best to help the sleeping Giant Algorand awake. It really differs from other Blockchain communities. Just take a look and make your own opinion.

Discover organizations and emerging projects on Algorand.

True Decentralization

The idea behind Blockchain is to be a decentralized system. Many leading Blockchain technologies like the Binance Smart Chain, or Solana are not fully decentral even if they are meant to be. 

The problem with other Blockchains is, they have just a few or even one single validator. Other Blockchains need a lot of computing power hence it is exclusive for some people to participate in the validation of transactions. The PPoF protocol and Algorands low computing power make it easy for everyone to join the validation process.

The Algorand foundation is still holding a lot of the $Algo currency and is therefore still a main validator. But the decentralization process is ongoing, Algo plans to be fully decentralized in a few years.

Also, Algorand allows users to participate in Governance and take an active part in future development of the technology and other important decisions. 

Silvio Micali

Silvio Micali - Founder of Algorand Blockchain and receiver of the Turing Award
The Godfather of Blockchain - Silvio Micali

Like investing in stocks, you watch out for a good and trustworthy CEO who will lead the company in the right direction. The same thing is in Crypto; you need a developer and visionary to rely on. You need a strong team and a bright head behind the project to trust.

Silvio is a Professor at MIT and also co-founder of zSnarks. Many of his students created their own Blockchains using this technology. But who knows best, if not the teacher himself?

Also, Silvio was granted the Turing award back in 1995, described as the “Nobel prize in computing.” He received it for “revolutionizing the science of cryptography.”

Closing Words

Of course, there are many further advantages of the Algorand Blockchain. We briefly summarized a few of them and want to invite you to do additional research on your own.
In sum, all the advantages make Algorand the perfect chain for NFT projects. If you have open questions, don’t hesitate to write us an E-Mail or ask questions in our social media channels; They all will be answered.

To be informed on time, feel free to subscribe to our Newsletter.

Thanks for having read until the End. Even if it is the End of this article, it is just the beginning for Algorand and Algoverse.

See You. 

Maxim, CEO

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