Why Algorand?

NFT 3D Metapunk on Algorand

Why not Ethereum?

Easy question. I will answer in one picture.

Why not BSC?

Yet another easy question. BSC is centralized. Very centralized. It has 21 validators; all of them belong to CZ or his friends. Basically, it means that your money does not belong to you; it belongs to CZ. Funds are not SAFU!

Why not Cardano?

Have you seen anything running on Cardano yet? We haven’t. Cardano has been around for a while, amassed tons of fans and reached a crazy market cap, but it is still the same as it was five years ago: vaporware.

Cardano has a long history of overpromising yet underdelivering.

Why not Avalanche?

First of all, Avalanche has security issues. And the way they handle them is… well… not trustworthy.

Why not Solana?

Oh boy, finally we got to Solana. Actually, it has many issues. It’s just that Solana boys don’t know about most of them.

Other transactions are barely visible next to “Vote” ones.

Why not Polygon?

Polygon is a Level 2 (L2) solution. L2 means it’s another layer on top of Ethereum (L1) with its consensus. Despite having some advantages over Ethereum, such as faster and cheaper transactions, it has limitations too:

  • Security: L2s are less safe than L1 by their nature. You have to trust not only Ethereum consensus but also Polygon consensus. More entities to trust means more points of failure. Also, more layers mean more complexity which grows exponentially. And complexity leads to a larger attack surface.
  • Liquidity split: some people prefer Ethereum, some people prefer Polygon. It’s good to have a choice, but there is a caveat: liquidity gets divided into multiple parts. In practice, users will get worse exchange rates and higher volatility which may cause some liquidations.
  • Inconvenient transfers: sending MATIC (the only token you can send) from Polygon to Ethereum using their PoS Bridge (the only way to do it) takes roughly seven days. Welcome to the future of finance, where you have to wait for a week to transfer your funds!

Why Algorand

We believe that Algorand is the future of finance because it has all the properties we desire from L1. It is:

  • Fast
  • Secure
  • Decentralized
  • Forkless
  • Sustainable

Algorand is Fast

Currently, Algorand can process around 3000 transactions per second (TPS) with instant finality. Not a mind-blowing number, but more than enough for 2021. Some popular blockchains are orders of magnitude behind! 😉

Algorand is Secure

I am going to be sincere here. We are not cryptography experts, so we cannot appropriately verify Algorand security. Even if we were, this task requires multiple months of work by a dedicated team. And even in this case, the best result would be “we couldn’t find any flaws”, not “we guarantee it is perfectly secure”.

Algorand is Decentralized

Most modern chains use delegated proof-of-stake algorithm (DPoS) to validate blocks without wasting much power. The core idea of proof of stake is simple: nodes have voting power proportional to the stake (amount of tokens) they hold (unlike proof-of-work chains where voting power is implicitly proportional to hashrate). However, if there are many validators, coordination among them gets hard, which makes things very slow.

Algorand is Forkless

Unlike Bitcoin and many others, all Algorand blocks are 100% final. The blockchain is mathematically proven to be immune from forks. Why is this important?

Algorand is Sustainable

According to a report by The New York Times, the creation of an average NFT has a stunning environmental footprint of over 200 kilograms of planet-warming carbon, equivalent to driving 500 miles in a typical American gasoline-powered car.

Conclusion

The choice of an L1 is not an easy one because each project has its own pros and cons. We carefully weighed them and made our decision.

3D NFT Metapunks on Algorand

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Cometa

Cometa

Easy-to-use liquidity aggregator on Algorand for a user-friendly DeFi experience. Creators of the Metapunks NFT collection.