ALGO has been making news lately by announcing and implementing a new upgrade that increases the throughput of the network to 6,000 TPS which is 5 times more than it was previously. The layer 1 mainnet of Algorand has been outperforming many other networks. With the latest update, it leaves many participants of the industry biting the dust.
The current capacity is already 1200 times higher than that of Bitcoin and 600 times higher than Ethereum. While some people suspected that the Ethereum merge would increase the throughput, developers stated many times that the improvement would be minuscule. After the merge, the performance of the network did not improve.
Algorand is the next king of PoS networks
The upgrade’s main goal is to allow trustless communications between different chains without any involvement of third parties. The interconnectedness is the biggest selling point of web3 and Algorand bets its future on providing the right platform for app builders who want to create advanced web3 solutions and work on the fastest network to ensure effortless scalability.
The new approach is called State Proof and will remove the necessity of bridges and centralized validation at large which could reduce vulnerability and ensure that interconnectedness is achieved without compromising safety — a dream for many crypto enthusiasts who believe in the web3 philosophy.
Algorand’s network has been a stellar example of how to handle environmental impact with negative carbon emissions and a high-capacity blockchain that can be used to deploy a diverse assortment of decentralized apps.
Is it a good time to invest in ALGO?
With Ethereum losing its grip on investors, many are starting thinking about currently available alternatives. Cardano and Algorand immediately come to mind. However, the former is certainly not the fastest network and requires a lot of work before it can compete with Algorand. The upcoming Vasil hard fork event is causing some hype, but it is unlikely enough to put ADA in a commanding position on the crypto market.
On the other hand, Algorand has recently partnered with FIFA creating more hype around it. It is currently approximately 80% down from its ATH meaning that the next Bull market can be quite exciting for ALGO holders.