The following is a guest post by Sebastian Quinn, the co-founder of Yieldly, a DeFi suite developed for the Algorand blockchain.
While some have come close, none has managed to overthrow the incumbent – either in user adoption or market share. Over time, however, the scalability and efficiency issues also get worse, as do Ethereum’s competitors.
When it comes to figuring out which networks have a chance of usurping Ethereum’s position as the most popular protocol, Algorand’s extensive network of partners and its excellent reputation among developers and crypto enthusiasts cannot be denied.
Bring the indictment
Silvio Micali founded Algorand in 2017 and to this day oversees all research on theory, security and crypto financing. Micali has been with MIT’s electrical engineering and computer science department since 1983, putting him on par with some of the early cypherpunks.
In fact, Micali won the 2012 Turing Award for his contributions to cryptography, the most notable of which was the creation of zero-knowledge evidence that enables parties to prove or disprove anything without having to disclose relevant data.
Algorand’s reputation among developers is undoubtedly the result of its association with Micali and his extensive work in the field of cryptography. In this regard, Micali’s accomplishments and contributions should not be taken lightly when comparing Algorand’s capabilities with those of other blockchain networks.
Promotion of innovation through technical development
Ethereum may already have made a name for itself in the NFT space, but Algorand is fast approaching. A little over a month ago, the Algorand Foundation announced the launch of the Algorand Virtual Machine, or AVM. AVM presents a more robust system for creating dapps that can be scaled to be used by billions worldwide.
The upgrade will strengthen the smart contract functions, enable more complex applications and unlock functions for DeFi- and NFT-Dapps that were not previously seen in the Alogrand ecosystem. Most importantly, the AVM developers will also provide the necessary tools for writing smart contracts in Python or Reach – which will make the development of smart contracts on Algorand accessible to a much broader group of developers.
As the ecosystem wants to compete with that of the Ethereum network, introducing novel smart contract features and removing barriers to entry is a key factor in attracting new developers and projects.
Invest in the ecosystem
In the last few months Algorand has developed quite a bit among independent developers and companies who want to use the scalability of the network to develop their DeFi and Dapp projects. This is not least due to the numerous incubators, funds and accelerators that the Algorand Foundation offers.
In September 2021, the project launched a $ 300 million DeFi fund focused on bootstrapping innovative DeFi-centric protocols. The fund’s mandate was to support infrastructures and applications that promote the utility, liquidity and growth of the ecosystem.
This is not the first time the Algorand Foundation has reinvested in ecosystem development. In April 2020, Algorand announced a 250 million ALGO investment, valued at around $ 50 million at the time, to promote opportunities in application development, tools & infrastructure, research, and education & community.
PureStake’s AlgoSigner is just one of the many successful projects that Algorand has received to develop its product, a wallet extension for Chrome that allows users of Algorand applications to approve and sign transactions generated by Algorand applications. Another was Yieldly, the first DeFi protocol based on the Algorand blockchain, which is a launchpad for promising Algorand-based projects.
Algorand has gained a competitive advantage over Ethereum by actively investing in talent to develop Algorand-native products and expand their ecosystem as quickly as possible.
In addition, 21Shares AG recently launched an Algorand ETP on the SIX Swiss Exchange. This makes the Algorand ecosystem accessible to a large number of traditionally minded investors and increases the value of the network as a whole. There is nearly $ 3 billion in investments in 20 crypto ETPs at 21Shares AG, showing the appetite and activity for crypto investment opportunities there, of which Argoland will now be an active component.
Build a robust DeFi ecosystem through partnerships
Algorand has created a hospitable environment for developers to not only build their projects but also build a strong community. Algorand’s success in this regard is due in part to its position as the first open source, permissionless, and efficient pure proof-of-stake protocol. Ethereum, meanwhile, still has a good way to go before it fully transitioned to a fully scalable PoS blockchain.
Additionally, Algorand’s decentralization, speed, and security have won the trust of Web 3.0 developers worldwide. In fact, Algorand’s robust underlying technology ensures interoperability and ease of use among developers, and is a key part of why many cryptocurrency enthusiasts believe it will overtake Ethereum as the leading blockchain network.
Algorand’s rise has been further accelerated through its partnerships with well-known organizations around the world. For example, CERN is working with Algorand to build the world’s first immutable ledger for air quality. Working with PlanetWatch – CERN’s own blockchain company – Algorand will enable climate change experts to securely store crowd-source air quality data in order to combat pollution.
Algorand is also working with The International Blockchain Monetary Reserve (IBMR) on a macroeconomic project called Asia Reserve Currency Coin, or ARCC. The aim of the project is to promote financial inclusion in Southeast Asia and fight corruption by creating incentives for the public to report problems. Algorand is showing no signs of slowing down when it comes to forging meaningful partnerships with like-minded organizations.
Algorand is already designed to host a scalable DeFi and NFT Dapp ecosystem – so while Ethereum may have a first mover advantage, it could catch up with Algorand in the years to come.
Guest contribution by Sebastian Quinn from Yieldly
Sebastian Quinn, Co-Founder of Yieldly and a veteran in blockchain and new technology development.
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