Forget Dogecoin Smart Contracts. Algorand’s Platform for dApps Is Better.
The cryptocurrency crash I mentioned not long ago could finally be here. As of this writing, Ethereum (CCC:ETC-USD) is down 16.8% over the past week, while Bitcoin (CCC:BTC-USD) is down a whopping 23%. All due to the tweets of one billionaire CEO — Elon Musk — who came to the realization that BTC wasn’t so “clean” after all.
Musk’s Tweets seemed to have pushed us over the edge of the “Peak of Inflated Expectations” and squarely into the “Trough of Disillusionment,” as the media turns on cryptos and worldwide attention zeroes in on the usability and usefulness of crypto-based products.
While DOGE began as a joke, bringing smart contracts to the Dogecoin platform would make it inherently useful, and speculators believe it could catapult Doge in the same way smart contracts catapulted Ether.
Yeah. That’s probably not going to be the case.
Dogecoin Smart Contracts: We’ve Been Here Before
OK, you probably think I’m a crypto bear, and that this is the start of a long-winded rant against all-things altcoins… Far from it. I’m a big believer in innovation, and cryptocurrencies – blockchain in particular – represent some of the most promising innovations of our times.
Just like the internet before it, the blockchain will fundamentally reshape the world.
This won’t happen overnight, but long-term, I am very, very bullish on cryptocurrencies.
That said, we’re beginning to see the unsubstantiated cryptocurrency bubble reach its natural conclusion — ending the same way the same way the dot-com bubble of 2000 ended… with an enormous crash.
And way back in 2018, Dogecoin developers unveiled a promising new demo, which would allow Dogecoin to link up with the Ethereum bridge, called “Dogethereum.” Done successfully, Dogethereum would allow Dogecoin to compete in the world of decentralized finance (DeFi), and its blockchain could be used for the creation of all sorts of decentralized apps (dApps). However, Dogethereum never moved forward, as the price of Ether (which was what funded the development of Dogethereum) plummeted. Dogethereum was postponed indefinitely.
Now, as we’re on the brink of yet-another cryptocurrency crash, the rumors are back.
DApps: Bigger, Better and Already Here
That said, I absolutely love the idea of decentralized applications … dApps are software applications built on the blockchain. This can be any application. A video media application, like YouTube. A driver-rider app, like Uber. A music stream app, like Spotify.
The central link is that these apps are coded on the blockchain – and therefore, there is no central authority that “runs” the app and makes money from the app, either via subscription sales or digital ads. By removing that central authority, dApps create a new generation of truly free software applications.
Often times, these dApps have underlying cryptocurrencies which are used as a form of in-app currency in the dApps, or incentive token for the app developers and blockchain participants.
The appreciating value for these cryptos represents the economic value of the dApp, i.e. instead of the app makers making money from digital ad sales, they make money by owning the dApp’s cryptocurrency, which rises in value as more folks use the dApp.
I firmly believe that dApps will disrupt everything. The future YouTube will be a dApp. The future Uber will be a dApp. The future Spotify will be a dApp.
Most, if not all, apps in the future will be dApps.
There are a few cryptos that I like in this space right now. One that’s currently on my radar is Algorand (CCC:ALGO-USD) — a “Pure-Proof-of-Stake” (PPos) blockchain designed by Silvio Micali, a Turing Award-winning cryptography expert.
Creating a “pure” platform for dApps isn’t a simple matter — blockchain networks must have a high measure of scalability, security and decentralization. There aren’t too many platforms that can claim to have all three in equal measure, but Algorand makes an enviable case.
Algorand’s protocol is made up of two layers — one layer for running smart contracts capable of “atomic swaps” (or lightning-fast peer-to-peer crypto trading) and a second layer for running smart contracts that can power dApps.
What’s more, its platform is much more environmentally friendly than either Bitcoin or Ethereum’s proof-of-work (PoW) systems. Known as “Pure Proof-of-Stake,” it has a number of benefits over PoW-based systems, not the least of which include much, much lower fees and transaction confirmation times. The company claims it is carbon-neutral, generating just two millionths of the CO2 produced by its competitors.
This could be a huge sticking point now that all eyes are on the energy efficiency of cryptocurrencies.
Bottom Line on Algorand
Algorand’s platform is designed to be fast, equitable, and it already has several developers creating decentralized applications, including dozens of currently live applications.
But it’s not the only proof-of-stake, dApp-enabled cryptocurrency I’m excited about…
The key to striking it rich in the crypto market right now is to buy the right cryptocurrencies – the most technologically-advanced cryptocurrencies with the most value-additive applications.
My team and I are currently doing the hard work of sorting through these potential cryptocurrencies and highlighting the best ones … the cryptos that will weather the coming cryptocurrency crash and emerge from it ready to soar 10X, 100X, or 1,000X over the next two decades. Over the coming weeks and months, we’ll introduce these cryptocurrencies to Innovation Investor. But you don’t have to wait to sign up, as we’re currently covering the most hyper-scalable companies within the world’s strongest emerging megatrends right now. The blockchain is just one part of the picture.
To get started, learn more by clicking here.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this video.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.