The future potential of Algorand
Algorand is not only characterized by cheap and fast transactions, but also finds its appeal in the NFT universe. The so-called non-fungible tokens are becoming increasingly popular with investors because the market offers great potential. But as the hype grows, so do the prices of NFTs. These are now so high that only a few investors are able to buy valuable NFTs. Fractional NFTs aim to give more people access to the NFT market.
Worth knowing: When fractionating an NFT, the token is split into multiple parts by a smart contract, making them fungible and thus interchangeable. This allows valuable NFTs to be broken down into smaller parts, giving more people the opportunity to purchase a share of the NFT and thus benefit from the increase in value.
Algorand supports this creation of fractional NFTs and is the only decentralized network that works without forks. This makes this blockchain project ideal for issuers who want to make their NFTs accessible to a broader market of investors. Tokenization works using Algorand Standard Assets (ASA), which enable the creation of digital assets on Algorand’s blockchain. Both fungible and non-fungible tokens can be created with ASA – thus also fractional NFTs. The ASA functionalities can also be adjusted via Smart Contracts. Investors interested in NFTs can buy Algorand and thus participate in the digital art trade.
Caution: Like all other cryptocurrencies, Algorand is considered a very risky investment. Algorand has only existed for a few years and is still under development. Since the Algorand project is promising, the ALGO currency is still worth a look for investors.