The founder of Ethereum challenger Algorand (ALGO) says that crypto assets with one key feature will survive into the next decade as blockchains become mainstream tools used by traditional financial institutions.
In a new interview with the Los Angeles Times, Silvio Micali, a professor of computer science and cryptography at the Massachusetts Institute of Technology (MIT), says that digital assets with low transaction costs will survive into the future.
“The moment the blockchain starts to be used for transactions, the few blockchains that are really capable of transacting at a very low cost, they’re going to emerge, in my opinion.
When traditional finance starts getting on the blockchain, you’re going to see the blockchains that are really used in a massive and transactional way are going to accelerate.
And a few stores of value [such as Bitcoin] will maybe stay.”
According to the Algorand Foundation, a transaction on the smart contract platform costs 0.001 ALGO.
Micali also says that one of Algorand’s strengths is its high energy efficiency. According to him, Algorand consumes less energy than a small street, a tiny fraction of Bitcoin’s consumption.
“Bitcoin absorbs as much electricity as a small country, and [Algorand] consumes as much electricity as roughly 10 homes.”
Michali also notes that we live during an era where cutting edge and outdated crypto projects exist at the same, drawing comparisons to both the Industrial Revolution and early human history,
“We are in a very divided world. We have blockchain 1.0, 2.0, 3.0, 4.0 – which I believe Algorand is – coexisting during the same time. So that is very unique. If you look at the Industrial Revolution…you have more and more sophisticated [technologies], so usually not all these things coexist.
We are at a very unique moment in which there are extremely sophisticated blockchains like ours and when there are very early generation blockchains who continue to be there simultaneously. It’s like you have Neanderthal man and Homo sapiens living together.”
Algorand is changing hands at $0.66 at time of writing, a 9.6% decrease from its seven-day high of $0.73.
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