Algorand – ALGO Coin Features and Its Use Cases

Algorand Use Cases

Algorand is a blockchain cryptocurrency protocol that aims to be scalable. The Algorand platform supports 3 main features: Atomic Transfers, Issued Assets, and Smart Contracts. Algorand’s native cryptocurrency is called ALGO, and its consensus algorithm is based on proof of stake. The concrete value of Algorand features can best be understood based on its many use cases. So, we review few examples of Algorand’s real use as well.

Now we’re going to talk about a few things. Atomic transfers that are made by smart contracts, both stateful and stateless are what we mostly talk about.

The atomic transfers feature is the feature that makes it possible for and participants to work together without having to trust each other and to exchange money over the network. Without having to go through a single person.

This is the infrastructure or grantee that allows you to run the permissionless system without having to use an intermediary to do so.

In addition, you can issue assets, for example with Algorand Standard Assets you can represent stablecoins, loyalty points, system credits, and in-game points, just to name a few examples.

You can also represent single, unique assets like a deed for a house, collectable items, unique parts on a supply chain, etc. There is also optional functionality to place transfer restrictions on an asset that help support securities, compliance, and certification use cases.

Algorand Smart Contracts

So, we can divide this into two parts. One that is stateful. And one that is stateless, so what does this mean?

One, a stateful transaction or a stateful smart contract is done. There will be one main state that is kept and changed over time.

So, let’s say we had a smart contract that could keep track of votes in this state. It would change every time someone voted on the contract, this would be like adding up one vote in this contract or every vote. If this contract can keep its state over time, it means that it can keep some kind of data that it’s keeping track of from being messed up by other things.

Now, stateless smart contracts are just contracts that can live, run and do whatever they want without having any kind of data or keeping any kind of data in that transaction.
Stateless transactions can be simple. Like when two people give each other an object, it’s a simple transaction that doesn’t need to be kept. The only thing that needs to be done in this transaction is the simple thing that needs to be done.
This makes it a stateless smart contract, which means that nothing is recorded. Nothing is held and no data is kept in the smart contract.

Algorand Use Cases

The concrete value of Algorand features can best be understood based on its many use-cases, so we will review few examples:

Number one:

“Green projects” like in Miami city that is set to introduce a decentralized indoor and outdoor air-quality monitoring network built on the Algorand blockchain.
PlanetWatch, a French company specializing in leveraging green technologies, will build an internet-of-things network of third-party compact air-quality monitors throughout Miami, which will transcribe data to the Algorand blockchain. The aggregated sensor data will help detect pollution hotspots and power environmental analytics to monitor Miami’s air quality.

“PlanetWatchers,” or residents who have agreed to host the air quality sensors, will be compensated with in-app tokens and rewards through the network.

Data stored on the blockchain creates a global, permanent, tamper-proof air-quality ledger. It also allows the platform to track and reward all contributors.

PlanetWatch uses the Algorand blockchain because of its scalability, security and “carbon-negative” footprint. Its proof-of-stake consensus mechanism uses validators – rather than compute- and energy-intensive miners — to verify and record the data, making the Algorand blockchain a green one.
So, even casual observers of the cryptocurrency landscape saw Elon Musk criticize Bitcoin mining for being bad for the environment due to its high level of energy intensity, and the temporary plummet that this caused in the price of Bitcoin (and the crypto market as a whole).
With interest in environmentally friendly operations being a key factor in investment decisions across all asset classes. This focus on green energy is an attractive aspect of Algorand.

Next, we have second example, and this is the use case for Supply Chain Management.

VeriTX is a digital commerce marketplace for buying and selling digital and physical assets, particularly in the Aerospace and Medical parts industries.
Algorand and VeriTX are working towards a shared mission of removing friction from transactions by connecting buyers and sellers directly, eliminating inefficient costs associated with middlemen. VeriTX is integrating its supply chain with the Algorand blockchain, enabling the business to track parts from order to delivery.

In addition, integrating its digital supply chain on an immutable distributed ledger allows VeriTX to easily verify the authenticity of the parts, mitigating the $3 Billion counterfeiting problem facing the industry today. An Air Force maintenance commander has estimated that VeriTX would yield a 30 percent cost savings, 90 percent reduction in waste, and a 25 percent increase in aircraft performance (uptime).

The Supply Chain integration with Algorand blockchain has a lot of efficiencies built into it. So don’t worry about that. Imagine being able to know where every part was, whether or not it was, is real and how much it would cost to get a new one, all of them would be affected if there were not enough goods to go around. So, this is a very interesting use case and something to keep an eye out for in the future infrastructure.

The third example, we are going to talk about is also very interesting.

There are things like loyalty points, rewards, and cryptos that can be built into the algorithm of the Algorand blockchain, a very good example of this is a community token called FAME, which a very creative Twitter user @Bilalgorand came up with.

There are people in the Algorand family who use it as a way to keep track of each other. A great use for the FAME token in this case as well.

Let’s say you were the owner of a widget company. You could use this same idea in a business.

There are many others Algorand use cases and this video-article could last for hours if we dip dive into it. Thus, we will name a list of examples, and then you can come up with your own idea:

1. Decentralized Finance (DeFi) / Open Finance, and payment services;
2. Asset creation, digital securities, asset management and distributed investment;
3. Intellectual property, digital art, and copyright;
4. Identity management;
5. Social networks, media and communities that look for decentralization and digitization of rewards, incentives and collectables;
6. Decentralized organizations, voting, distributed management;
7. Supply chain, Internet of Things, and product authentication;
8. Transparent charity and social good;
9. Gaming, prediction markets, staking and betting, virtual reality;
10. Your Own Idea ready to create a business innovation no one had ever thought about before.

So, there you have it ladies, and gentlemen, the Algorand features, and its use cases.

In conclusion, Cryptocurrencies are often volatile and Algorand is no different, but the growing level of adoption, partnerships, real world use cases, and the green credentials of its blockchain mean that Algorand is a digital asset that have plenty of potential ahead over the long term as its adoption increases.

Algorand Use Cases

●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●
SUCRYPTOZ
📰☕🎮🌍🚀🌜
Your daily dose of the best Crypto content!

#algorand #algo #crypto #iso20022

#blockchain #defi #fametoken

●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●

Disclaimer: This article is provided for informational purposes only.

It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Algorand Videos

Algorand (ALGO) – 7 Reasons Why Algorand Is A Revolutionary New Blockchain Technology!

ISO 20022 Crypto List – 5 Compliant Coins (XRP, XLM, XDC, ALGO, IOTA)