Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.
Algorand (ALGO) Rating= 470/1000
Technology (0 to 300) = 250
- Speed (0 to 50) = 40
Algorand’s transaction speed is remarkable. The platform can handle 1,000+ transactions per second with less than 5 seconds of latency. It is also the first blockchain to provide immediate transaction finality with no forking. The enormous transaction speed makes the network ideal for any financial system to speed up financial settlements.
- Cost (0 to 50) = 50
On the platform, every transaction is charged a minimum transaction fee of 1,000 microalgos. One algo is equal to 1,000,000 microalgos. At the time of this writing, one algo worth $0.279. From the prices, the transaction cost is quite affordable compared to other platforms such as Bitcoin or Ethereum.
- Scalability (0 to 50) = 40
Algorand is scalable and solves the problem of scalability trilemma experienced in other blockchain networks. Scalability on the platform is achieved through the use of pure proof-of-stake consensus. The consensus randomly selects a small set of block proposers and verifiers. Users build the next block by receiving a fixed number of messages. This is unlike proof-of-work consensus in Bitcoin, where users have to solve cryptographic puzzles in order to propose or validate blocks. Proof-of-work results in scalability issues demonstrated by Bitcoin.
- Environmental Impact (0 to 50) = 50
Algorand uses a pure proof-of-stake (PPoS) consensus protocol built on Byzantine agreement. The coin, therefore, cannot be mined as with Bitcoin and Ethereum, which all use Proof-of-Work consensus. In turn, this translates to a minimum impact on the environment.
- Reliability (0 to 50) = 45
Algorand is indeed reliable and can be leveraged by any financial system. The fact that the consensus mechanism ensures full participation, protection, and speed in the boundaries of a truly decentralized system makes the platform reliable. Additionally, the finalization of blocks in second is perfect for large payment and financial networks. No issues have yet been reported on the network.
- Decentralization (0 to 50) = 25
Algorand is currently a truly decentralized platform. The platform leverages a pure proof-of-stake (PPoS) consensus protocol built on Byzantine agreement. The system can, therefore, achieve consensus without a central authority. The platform also uses cryptographic sortition thus solves the issue of miners’ centralization.
The staking system does however lead to potential centralization by bad actors.
Security (-250 to 0) = -130
- Reorg, 51% & Brute Force Attack (-100 to 0) = -80
CTO Phone Hacking: On 5th October, Algo Capital reported that Pablo Yabo, its former CTO, had his mobile phone compromised, allowing attackers to seize control of an Algo hot wallet he was administering. Following the hack, close to $2 million in cryptocurrencies were stolen. However, the network itself was not compromised. Such attacks risk users’ funds, and therefore the security of the platform should be enhanced.
The super staking model being used as well as certain staking rules mean the network is very susceptible to bad actors taking control of entire blocks.
- Potential for Being Banned (-100 to 0) = -10
Algorand has little potential of getting banned as it abides by a strict set cryptocurrency regulations. Algorand is backed by solid VC firms that have made huge investments in the company.
- Network Vulnerabilities (-50 to 0) = -40
The major vulnerability on the Algorand platform is the lazy validator problem. Through this vulnerability, 2/3 honest nodes cannot be fulfilled because honest nodes go offline without a monetary incentive to stay online. This issue makes it possible to fork Algorand even with 1/3 malicious users or even bribing of validators.
Use Case (0 to 500) = 310
- Initial Main Use Case (0 to 100) = 30
Algorand was created to enable a “borderless economy” by creating an advanced blockchain platform. The platform was designed to overcome the Blockchain Trilemma by building fast and scalable cryptocurrency without compromising its decentralization status.
Algorand has its own native token ALGO, which can be traded on multiple exchanges, including CoinEx, KuCoin, and Binance. ALGO can be exchanged with other coins for payment of goods and services.
- Mainnet (0 to 200) = 200
Algorand launched its mainnet on 19th June 2019, two days after it open-sourced its node repository. The mainnet launch was successful, achieving over 1,000 transactions per second with less than 5-second latency. However, since the mainnet is only a few months old, it’s still too early to account for its credibility.
- Additional Use Cases (0 to 100) = 20
Algorand has numerous additional use cases. First, it enables developers to build decentralized applications (DApp). The platform also enables digital integrity allowing physical security and end-to-end visibility of supply chains. Algorand can also be used to provide analytics for DApp build on the platform.
A full list of Algorands potential use cases can be found here.
Crypto casinos are a valid, legitimate and active use case: there are currently no Algorand casinos or ALGO casinos.
- Additional Working Product (0 to 100) = 20
A good number of additional products like DUST are in development.
Core Team, Partnerships & Developers (0 to 200) = 80
- Core Team & Developers (0 to 100) = 40
Algorand developers and team consists of professionals in different fields, including science, research, mathematics, economics, and technology. The team is led by Silvio Micali-an MIT professor experienced in cryptography, secure protocols, and pseudorandom generation. The foundation is based in Boston and other prominent employees hail from the likes of MIT, Microsoft and Mozilla.
On the down side the ICO auction price was ridiculously inflated and a number of major mistakes have been made with the Dutch auction among them.
- Partnership (0 to 100) = 40
Algorand Foundation has made enormous strides in terms of partnerships. Notable companies that have partnered with the foundation to leverage the Algorand network include DUST identity, Union Square Ventures, Reach, Parsiq, Stonize, AssetBlock, Securitize, IDEX, Bleumi, and PureStake, among others.
Algorand has partnered up with World Chess to become the official partner of the FIDE Grand Prix Series.