Algorand Investment Value Analysis Report | 2020-2021 Quick Understanding Lite Version

Algorand Investment Value Analysis Report | 2020-2021 Quick Understanding Lite Version

Author: SantTi Li

Official account: Brother Future

Email：santi.business1021@gmail.com

Time: October 20, 2020

Mathematics provides protection, fundamentals show the future, technical analysis increases stimulation, and your inspiration achieves the ultimate value

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• ★Abstract:

• Algorand basically continued the compliant construction route and stable development speed described in our March analysis report

• The price trend of Algorand’s governance token Algo is basically consistent with the trend of the investment analysis in March.

• Algorands development model and basic concepts have been recognized by more traditional financial institutions, including Paul R. Milgrom, who was confirmed to join in September and won the 2020 Nobel Prize in Economics in October

• Algorand’s 2019 launch was overheated and its release volume was insufficient. The high price caused the economic model to be unsuitable. After a year of improvement and improvement, Algorand has gradually stepped out of the most dangerous zone and entered a healthy and predictable model year by year.

• This article will summarize the recent development of Algorand in stages and explore value points and improvement points

• Algorand is currently one of the projects with the greatest potential for long-term compliance applications from the perspective of fundamentals. ETH and ADA are currently the biggest potential competitors. Polkadot and Near need to wait for further development and further improvement. The discussion will be more objective after the heat is slightly reduced. for comparative analysis.

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• 1. Project introduction

• The Algorand public chain was founded by MIT MIT professor Silvio Micali, an internationally renowned cryptography pioneer and winner of the Turing Award. Through a blockchain platform specially built for enterprises, it realizes the technical promise of blockchain.

• Professor Silvio Micali has been supported by many government agencies due to his great contributions to VRF and zero-knowledge proofs.

• Algorand provides existing businesses and new projects with an infrastructure that enables them to operate globally in a decentralized economy, solving the impossible triangle.

• The Algorand secondary market was affected by the overall impact of the new crown pneumonia global investment. In March, it fluctuated greatly. The lowest price dropped to 0.09 US dollars, but then the whole returned to normal and reached about 0.8 US dollars in September. Compared with March, the price increased by about 7 times. , and recently pulled back to around $0.3.

• Compliance and the feasibility of long-term vision are the foundation of its huge market potential in the future (USDC, ISDA International Swaps and Derivatives Association, Shariah financing certification, digital currency ARCC, Republic, etc. )

• Official organization: Algorand INC. and Algorand Foundation, unofficial independent VC investment fund: Borderless Capital (mainly investing in Algorand ecological construction cooperation) holds about 100 million Algo

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2. A Brief Introduction to the Token Economy

Algo price and market cap chart

The latest release rules for private placement nodes in 2020:

The basic release is the total quota: 3% of the relay node quota + the number of tokens unlocked by additional rewards if the conditions are met:

Note: Only when MA30 is higher than the previous high will a certain acceleration be issued

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3. Technical analysis

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Co-Chain is an Algorand permissioned chain, which ensures efficient and secure interoperability between Algorand permissionless chains and other Co-Chains.

Step 1. Asset transfer from Algorand Co-Chain to main chain

Step 2. Asset transfer from main chain back to Co-Chain

Step 3. Interoperability between Co-Chains

link address

link address

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BSN is a cross-cloud service, cross-portal, and cross-bottom framework for deploying and running a global public infrastructure network for blockchain applications. It is composed of the National Information Center, China Mobile Communications Corporation, China UnionPay Co., Ltd. Co-sponsored by Technology Co., Ltd. BSN has successfully launched more than 130 public city nodes around the world. Joining BSN, Algorands advanced technology will be able to effectively enter the Chinese market. Through the adjustment of the first layer of Layer-1 functions, Algorand will be able to use BSNs local resources to directly provide technical value to developers and enterprises in China.

★ Public chain consensus mechanism Consensus Mechanism: Pure-PoS: BFT+VRF, 1000 TPS, less than 5 seconds delay

Algorand uses the PPoS protocol based on Byzantine consensus. The impact of each users choice of new blocks is proportional to their stake (number of tokens) in the system. Users are randomly and secretly selected to propose blocks and vote on block proposals. All online users have the opportunity to be selected to propose and vote. The possibility of a user being selected, as well as the weight of proposals and votes, are proportional to its Stake amount. Algorand’s PPoS approach ties the security of the entire economy to the integrity of the majority of the economy, rather than a small fraction of the economy. The system is safe when most of the money is in the hands of honest people. With other consensus methods, it often happens that a small part of the economy determines the security and overall benefit of the entire economy, which means that only a small number of users are needed to prevent other users from transacting. Owners of a small portion of Algorand’s funds are unlikely to damage the entire system, and owners of the majority of funds would be badly worthless because it would weaken their purchasing power and ultimately cost them their own assets.

Algorand 2.0—ASA- Standard Asset standard asset, ASC- Smart Contract smart contract, AT-Atomic Transfer atomic swap.

Algorand has two new functions to eliminate the shortcomings of the second layer Layer-2 method, and these new functions are implemented in Layer1.

1. Create a new fungible token

2. Implement atomic multi-party transfers (AMPTs)

By being implemented at the first layer of the blockchain, both functions will be part of the Algorand consensus protocol and are very secure, efficient and easy to use. Built directly into Algorands first layer, these contracts are faster, more scalable, and more secure. Since Algorand’s transaction fees are extremely low, ASC1s’ execution costs are also extremely low. Accounts governed by ASC1s do not require private key management.

Implementations at the first layer are especially valuable when fungible tokens (fungible tokens) are used to issue a new currency. If a digital currency is issued through a smart contract, as long as the slightest error occurs in the contract, or the slightest compatibility problem when using an existing application for a new currency, it is possible, and it is already in reality. In many cases, great losses are caused.

Recommended reference technical reading:

Algorand off-chain smart contract architecture to meet customized complex contract requirements

How Algorand 2.0 Facilitates Real World Transactions with ASA

Layer 1 Innovation Strategy of Algorand Public Chain: Replaceable Token and Atomic Multi-party Transfer：

The Absolute Core Advantages of the Algorand PPoS Consensus Protocol

Third-party Runtime Verification officially verifies that the Algorand blockchain will not fork:

Algorand Comprehensive White Paper:

《Algorand Co-Chain》

Developer related links:

type

type

GoSDK: 

https://github.com/algorand/go-algorand-sdk  

JavaScript SDK:    

https://github.com/algorand/js-algorand-sdk  

Python SDK:

https://github.com/algorand/py-algorand-sdk 

Links Links:

https://github.com/algorand/js-algorand-sdk 

Developer URL:

https://developer.algorand.org/docs/javascript-sdk 

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4. Team and community analysis

The core figure of the Algorand team is the Turing Award winner Silvio Micali, a key figure in VRF and zero-knowledge proofs. There are many resources such as MIT behind it, and it is also a frequent guest at government-level meetings in various countries. The rest of the core team are almost all from Ivy League schools and have sufficient experience in the development and operation of listed companies. For example, the chief scientist Chen Jing has multiple degrees from Tsinghua University, MIT Computer Science, and Princeton postdoctoral. In the field of cryptography Has a very professional level of knowledge and scientific research ability.

Foundation COO Chen Fangfang is also an MBA from Yale University, and has rich experience in management and market analysis; the new CEO of the foundation, Sean Lee, was previously a market strategy and operation mentor and consultant for many technology team companies in Hong Kong. Computing, solution sales have a lot of experience. Steve, CEO of the Algorand INC team, has experience in the operation of listed companies, and has a more down-to-earth style of work. Steve, the marketing director who joined the foundation in 2020, also has extensive experience in the former Dell Group.

Chief Economist Pablo, who spent ten years at MIT where he worked in cryptography and macroeconomics. He is one of the co-inventors of Interactive Proofs of Rationality, an extremely fast cryptographic proof that uses incentives rather than verification to guarantee correctness. Algorand Foundation members and advisors also have extensive experience in the blockchain industry, including a member of the committee for the early design of Ethereum: Massimo Morini.

The winner of the 2020 Nobel Prize in Economics became a consultant of Algorand before winning the award, which added a lot of color to the perfection of the entire team.

https://www.algorand.com/who-we-are/our-team

• Recommended reference reading: In-depth Analysis of Algorand Core Team

• l Judging from the fan data, Algorand has nearly doubled the number of fans in the most important overseas Twitter community in the past 7 months, and the team and foundations twitter has nearly 19,000 fans. This may be due to the fact that Algorand’s main partners are international overseas projects, which has also aroused the interest and attention of the partners’ followers.

• l The performance feedback from people using the Algorand public chain in the technical community is relatively positive. From the perspective of market attention, institutions and mainstream media still have strong expectations and timely follow-up reports on the major cooperation news of the project.

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5. Application potential analysis (updated in October)

1. Cooperation between inclusive finance and securities applicationsRepublic, a world-renowned investment platform and technology service provider

Based on the Algorand platform, a brand new digital SEC compliance profit sharing token Note will be built. Republic has raised money for more than 170 startups through crowdfunding and private syndicated loans, including Tesla founder Elon Masks Space X; it facilitated about $67.5 million in investments last year. With Algorands streamlined asset creation process, fast financial transactions, and instant transaction finality, Republic will benefit from being on the cutting edge of open financial innovation.Compliant digital securities issuance platform Securitize

It also cooperates with Algorand so that issuers will be able to issue digital securities on the Algorand blockchain through Securitizes DS protocol.，IBMR.io to Launch Southeast Asian Microfinance Platform on Algorand 2.0 Platform

ARCC.one aims to support Aisa Reserve Currency Coin (ARCC) to become the worlds first micro-asset, which can help the poor working class in Southeast Asian cities to integrate into the modern financial system. Currently, there are more than 300 million adults in Southeast Asia without bank accounts , nor proper access to credit, investment and insurance. This has led to digital payments becoming the preferred method of payment for the unbanked, and are expected to account for nearly half of all transactions by 2025, surpassing the $1 trillion mark.

2. National-level compliant digital currency applicationMarshall Marshall Islands Sovereign Digital Currency (SOV)

, will use Algorand technology to build the worlds first national digital currency. The SOV will circulate in the country at the same time as the U.S. dollar, helping the Marshall Islands to function efficiently in the global economy. SFB Technologies, as the main person in charge of the plan, said that the reason for choosing Algorand is its high speed, scalability, security and compliance.The worlds first compliant digital currency authorization provider Monerium has reached a cooperation

, In 2020, digital currency will be issued based on the underlying protocol of Algorand, accelerating the development of mainstream blockchain applications. In June 2019, Monerium obtained a digital currency license issued by the Icelandic Financial Supervisory Authority, which is the worlds first issuance based on EU electronic currency regulations. Blockchain electronic currency license. And in the European Union, Iceland, Norway and Liechtenstein, digital currencies including the US dollar, the euro, the British pound and the Icelandic krona have been fully supported.FlexFinTx aims to

, can help 400 million people in Africa record their digital identities. Using Algorands blockchain platform, FlexIDs are tamper-resistant and self-sovereign, meaning no organization can access a users information without an individuals permission, and users have full control over their data.

3. Financial DeFi compliance application business such as international financial insurance clearing, etc.:，International Swaps and Derivatives Association

Algorand has become a member of ISDA

By partnering with ISDA and implementing their Common Domain Model (CDM) on the blockchain, financial organizations will be able to easily create decentralized financial instruments using existing templates and programming toolsAlgorand Certified for Sharia-Compliant Funding

Islamic institutions can now start using the Algorand blockchain for economic transactions.Attestiv enables the digital transformation of the insurance industry ecosystem through Algorand

, in order to solve the problem of property and casualty insurance fraud that has lost more than 40 billion US dollars in the United States, and then empower the digital transformation of the entire insurance industry. Attestivs core technology supports digital media (photos, videos, and documents), sensor data, metadata, etc. Once evidence is captured by digital media, it will be stored in an unchangeable block in the form of an encrypted, tamper-proof perceptual fingerprint On-chain, these fingerprints will be stored on the Algorand blockchain to ensure that the data remains intact and cannot be tampered with

4. Financial stable currency application:Tether is the first stablecoin to take advantage of the launch in Algorand 2.0

, will provide instant confirmation, micropayments, and automated wallet support. Will enable Algorand users to access the most liquid and stable medium for exchanging USDT. The integration and development of Tether will bring huge financial opportunities to the development of applications through a large number of decentralized assets on the Algorand platform, and speed and stability are the key points of such applications. If a large transaction volume is to be carried, a A secure and fast underlying network is the foundation for future large-scale applications.Circle uses Algorand as the public chain platform for the issuance of the official compliant stablecoin USDC

, which will enable customers of Circle business accounts and Circle APIs to easily move funds between traditional banks and card networks to digital dollars on the Algorand blockchain. This collaboration will provide financial institutions with the tools they need to take full advantage of USDCs unique strengths and provide enterprise-grade solution use cases.Meld Gold will issue decentralized gold tokens based on Algorand technology

, plans to integrate blockchain technology into the existing gold supply chain. Investors and consumers will be able to trade physical gold and digital gold tokens through this global network of major partners and gold suppliers.

5. Tokenization application of real estate, artwork and other physical assets:Props is a blockchain token reward system provider that has passed the SEC RegA+ exemption

, Props partners can provide SEC-compliant token rewards for users in their App by accessing the API, and share network value with users through User Capital, a new form of capital. Props has integrated YouNow, Camforg, Listia, and Paltalk, four applications with tens of millions of users. Props has migrated all six million users from Ethereum ETH to the Algo chain, and there are millions of daily transfers without any congestion.AssetBlock Launches Algorand-Based Investment Platform

, will be able to exchange Algos for $60 million worth of tokenized real estate interests.Realio is a real estate private equity firm

, an end-to-end digital asset issuance and P2P trading platform. The Realio Issuance Network is a layer 2 based solution for building compliant issuance and interconnected decentralized ecosystems across global jurisdictions.OTOYs Academy Award-Winning Technology

Used by the worlds leading visual effects studios, artists, animators, designers, architects and engineers. Through Algorand and the Render Network, artists can store and access their creations

6. Global-scale communication, quality, data and other applicationsFrench environmental monitoring service company PlanetWatch

, will use the Algorand blockchain and Internet of Things technology to establish the worlds first immutable air quality distributed ledger. PlanetWatch will store data collected from air quality sensors on the Algorand blockchain and will reward sensor owners for their contributions to the ecosystem by distributing PLANET tokens, a utility token. The Algorand blockchain will create an immutable air quality repository of verified data accessible to all participantsFondazione Ugo Bordoni Foundation supported by the Italian Government

, will use Algorand to experiment with 5G spectrum allocation, artificial intelligence, digital networks and services aimed at experimenting with innovative applications and services for citizens, businesses and public administrations.Parsiq: Provides enterprises with better monitoring and analytics of their own ecosystem

, PARSIQ will use all of its business on the algorand blockchain, making analysis easier and data more transparent than ever

7. Value-added investment transactions, decentralized exchanges and applications:,IDEX plans to develop a new generation of distributed exchanges on Algorand

JellySwapBased on Algorand, we are actively building a trustless flash swap platform between ALGO-ETH and ALGO-BTC. The swap platform is expected to be officially launched on the mainnet at the end of October this year.

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1. Fundamentals long-term Long Term perspective:

Algorand continued the previously analyzed compliance route from March to October this year. The successive participation of USDC, BSN, Republic and other compliant companies and organizations has also allowed this route to continue in a healthy manner. In 2020, the overall cooperation will move towards More long-term, international, sophisticated direction of development. From the recently emerging Bitmex CTO world, Okex private key holders cooperate with the investigation of incidents, etc., it can be found that the compliance route and internationalization route are the most important and core prerequisites for the future blockchain digital currency field and the participation of large-scale institutions Only the infrastructure and application logic built on the basis of compliance can have long-term potential value that can be expected. Otherwise, being replaced or limited is just a matter of time and interest. The application potential cases mentioned above also prove this trend (note: special reasons such as national policies and black swan situations are not included here)

3. Speculative Technical Analysis: Updated on 19 October 2020:

Please note: technical analysis can only be used as an auxiliary reference tool forever! As we said at the beginning of the article, it is a partner to enhance stimulation and analysis, but it is not and cannot be a way to make accurate future predictions! ! ! Readers must be cautious on this point! Be more cautious!

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6. Judging from the team policy and operation of Algorand, which has been online for more than one year, this project is a relatively rare development team in the industry whose main goal is technology development and compliance cooperation. The qualifications of the team developers and investment control personnel are world-leading level. And judging from the fact that the auction funds were not used without authorization and all were repurchased and destroyed according to the rules, it is not the kind of game that calls for arbitrage and arbitrage. The team will also update the transparency report on time to inform the community. Therefore, although last year’s auction There is an inconsistency between the release amount and release amount, but after improvement, it can be reviewed and analyzed as a long-term investment target.

Note: This analysis report does not constitute any investment advice or buying point advice, readers are asked to make their own judgments. Your subjective inspiration achieves your future height