[ALGO] Differences from other Layer 1s: The 'True Strengths' Revealed Through a Thorough Comparison with Solana, XDC, and XRP [Chapter 7]

Hello, I'm Xen.
In this article, I will delve into the project ALGO (Algorand) by thoroughly comparing it with other high-performance L1 (Layer 1) chains—
Solana, XDC, and XRP—to explore their differences and core essence.

Please pay attention to the "reasons why they are chosen by nations" and the "differences in design philosophy," which cannot be explained simply by "which is faster" or "which is cheaper."

✅ What are the four Layer 1 chains being compared?

✅ ① Speed & Processing Capacity Comparison

Metric | ALGO | Solana | XDC | XRP | Transaction Time | Approx. 4 seconds | Approx. 0.4 seconds | Approx. 2 seconds | Approx. 3 seconds | Throughput (TPS) | Approx. 1,000 TPS | Max 65,000 TPS (theoretical) | Around 2,000 TPS | Around 1,500 TPS | Finality | Instant Finality | Finalized after a few seconds (retransmission on failure) | Finalized | Finalized in 1 block

🔍Solana is specialized for speed, but has issues with stability.
ALGO has an excellent balance of immediacy and finality, making it suitable for financial infrastructure.

✅ ② Security and Decentralization Approach

• ALGO: Random selection using VRF → Nodes are less likely to concentrate, and it is designed to be difficult to attack

• Solana: Validator-dependent → Resource-intensive with oligopoly risks

• XDC: Delegated PoS → Limited number of nodes but high speed

• XRP: Consensus based on UNL (Unique Node List) → Has a certain degree of centralization

🔍 ALGO is unique in that it adheres to a philosophy of "making trust unnecessary" through mathematics and cryptography.

✅ ③ Energy Efficiency and Environmental Consideration

• ALGO: Carbon negative (reduces more than it consumes)

• Solana: High power consumption due to high processing (especially at peak times)

• XDC: High energy efficiency but limited information disclosure

• XRP: Can operate with 1/10,000th the power of Bitcoin

🔍ALGO is highly advantageous for adoption in Europe, where environmental standards are strict, and for public use.

✅ ④ Practicality and Adoption Track Record

• ALGO: Adopted by nations including the Marshall Islands, the Italian Ministry of Economy and Finance, and NigeriaNational adoption cases exist

• Solana: Among the highest number of active users in NFT and DeFi

• XDC: Government partnerships in trade finance (TradeFinex, IMDA) are underway

• XRP: Developing remittance networks with SBI, Santander Bank, and Middle Eastern governments

🔍ALGO and XRP have strong trust from 'nations and banks,' while Solana leans toward commercial use.

✅ Conclusion: 'ALGO' has a 'design adopted by nations'

In terms of processing speed alone, Solana is superior.
In terms of the history of financial integration, it is XRP.
XDC is what pursued efficiency with a specialization in trade.

However—

The difference between a 'currency designed on the premise of being used' and a 'currency on the premise of being sold.'
The choices of the future may be determined by whether or not one can notice this difference.

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