What Are Algorand and Solana?
Algorand was created by Turing award winner Silvio Micali. He is one of the most known and rewarded people in the crypto world and has provided so many new technologies for crypto. This is why when Algo started, it was sold for 2.4$ each without a problem during the ICO period. It never really got back to the high days up until very recently. With the increasing interest towards smart contracts this year, Algo once again managed to crack into the top 20.
Algo is a decentralized network ecosystem just like many similar projects. You could have your own project on top of the Algo network and it can sustain over one million transactions per day. It is based on proof-of-stake and helps the world be just that much greener thanks to it. With a staking option and over a million transactions per day, it is certainly one of the cheapest and fastest blockchains out there.
Solana on the other hand can support as much as 65 thousand per block, which shows that it is by far the fastest. Is it required to have that much for now? It is certainly not and 90% of it goes to waste since there are not that many transactions in SOL right now.
However, it is certainly a potential for its future. SOL is faster transactions between people and purchases oriented, unlike ALGO which is more long-term project-oriented. While you can purchase NFT on SOL in a second without paying too much, you could see ALGO create some server that rivals quantum computing. Similar mindsets on a problem-solving, yet very different approach on the problem at hand.
How Are Algorand And Solana Similar?
They are both pretty fast and they both try to help people focus on the benefits of a proper blockchain network over anything else. ETH and BTC require us to pay so much and BTC is incredibly slow even though we pay so much. Both ALGO and SOL allow us to both pay very little (a few cents) or even free and they are both very fast.
This is the main similarity because they both aimed at becoming a network that doesn’t charge hundreds of dollars for each transaction. Anyone who had to pay ETH gas fees would know why this is very important. Every day, millions of dollars are paid to miners in ETH just to pass our transactions, removing that from the equation would mean millions of dollars would stay in investors‘ pockets.
How Are Algorand And Solana Different?
Algorand mainly focuses on finding solutions for Corporations that want to have a blockchain that could scale according to their needs. You do not need to spend a lot to use it, and it could be tailored according to your needs. Have you seen too many websites getting the “hug of death” where too many people visit the website all at the same time, breaking the website and making it hard to connect with visitors?
Well, Algorand tries to not only solve this problem for websites but for software as well. This way if you need space for just a bit, you get a small amount, if you need a lot, you get a lot more but more importantly if your need changes, what Algo can do for you changes at the same time.
Sol on the other hand doesn’t do any of that. The main focus they have is to provide a great crypto experience for their users. It could be NFT projects, it could be collections even, it could be other crypto projects, swaps, exchanges, any website, basically, all crypto-related stuff could be bettered by SOL, and that is their main focus so far.
Only the NFT market has seen the benefits of using SOL so far, other parties have not fully realized the potential. However, with the way SOL is growing, it is a matter of time we have hundreds of projects all jumping into SOL because of how much they could save with it.
- Best P2E Games on Solana – GameFi On SOL Blockchain [2022 Edition]
- BSC to Solana Bridges – How To Send Coins From BSC To Solana Blockchain?
- Best NFT Marketplaces on Solana – Solana NFT Marketplaces List
- Best Dex on Solana – Swap Solana Tokens on Decentralized Exchanges
- Best Solana (SOL) Wallets (Mobile, Desktop, Hardware)
- How To Stake Solana (on Ledger, Coinbase, Binance)
- DeFi Coins Built on ALGO
- How to Stake Algorand? Where Can You Stake ALGO?
Max Supply: Estimated 550 million coins
Total Supply : 509,600,403
Circulating Supply: 303,778,579
Inflation: Starts with %8, over 8 years drops to %1.5
Max Supply: 10 billion
Total Supply: 6.7 billion
Circulating Supply: 6.2 billion
Inflation: 25+ million Algo per reward.
Unfortunately, all of ALGO was printed on genesis. This means the team held all of the coins, and it was distributed to people that way. Right now the team is openly holding a lot of ALGO and whenever the price goes up, they sell their coins and make a profit. This is not hidden and they are mentioning this even on their website. This has been seen with a mixed review so far.
Future Outlook For Algorand And Solana
The difference between the two is that after 2030 it is said that the ALGO team will not have any more ALGO to sell, and the inflation will stop, which means whatever is earned from proof of stake will only be the transaction fees and nothing more. After that happens, ALGO will be a great coin to hold, but up until that moment, it is very doubtful for them to ever get better technically unless there is some hype with the project.
Sol on the other hand is something that is today, it is already breaking barriers and making great strides to become a great project. Obviously, it needs to improve the smart contract part a bit more in order to attract more projects, but at least it is already making a lot of money for investors. All throughout the 2021 year, it has increased more than most other top coins, and this is mainly due to them catering to whatever people wanted at that moment, and not in the future.
Algo seems like a project that would be great in 10 years, unless you are already in your retirement age or you do not need money right at this moment, it is a wonderful project to hold for 10-15 even 20 years. In that time it could finish building and the inflation would be over and everyone could jump on it.
But this comes with a risk of becoming irrelevant to the market. In 10 years we could have so many new and better projects which could leave ALGO in the shadows as well. When anyone talks about a project that has a bright future, we are also risking the improving technology of the world as well.
Sol is a much better project for today, it is at least certain that you are holding a coin that everyone already loves and respects. This means at the end of the day even though ALGO gets hyped a lot by Reddit, the easier answer would be going with SOL for time being.
Is Algorand ethereum based?
No, ALGO is a completely independent blockchain network. It was created to compete against ETH and not be part of it.
How many Algorand coins are there?
10 billion total was minted at genesis, and less and less is rewarded every day until 2030 at which point it will be all 10 billion given to the public with no new coins staked anymore.
Does Algorand have a future?
They have managed to convince whole nations education systems (Ethiopia) and some other companies to use for their supply chains. As long as they keep it up, they have a very bright future ahead.
Is Solana a threat to Ethereum?
Not as of right now, but it certainly provides a challenge for ETH. The longer it takes ETH to solve the high gas fee problem, the higher SOL and similar projects will get.
What makes Solana special?
The incredible speed and near-free (less than one cent) cost involved making SOL one of the best ever at what they do. In a world of complaining about gas fees, they are a fresh breath of air.
Why does Algorand have value?
ALGO is not really a cryptocurrency. It is a company, and it is a company that wants to get other companies to use their product. This means the more business they do, the more value ALGO will have. This is mainly because companies that use ALGO will need to use ALGO hence why they need to spend it and create value for it.
Is Algorand a fixed supply?
Yes, it has a 10 billion supply and that will not change. At the very maximum, there will be 10 billion ALGO in the market and never more. Including all the ones that are lost, it would certainly be a lot less than 10 billion as well.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com