ASA - Algorand Standard Asset
In this article we will discuss Algorand ASA’s. What does ASA mean and what is an ASA? I’ll also talk about what current Algorand assets are available and what use-case there might be for future ASAs.
What does ASA mean?
ASA stands for Algorand Standard Asset. There are some other blockchains that offer similar technology with their own assets. However each asset is unique to the blockchain it’s created on.
What is an ASA (Algorand Standard Asset)?
An ASA is an on-chain asset that can be developed and used with the same security, compatibility and speed as Algorand itself. This is a great strength of ASA’s as it’s beneficial core capabilities all transfer to these assets. However the absolutely most valuable features is that it democratizes access to investments and disintermediate cross-border transactions.
ASA’s are built directly into Algorands Layer-1, which means that Algorand Standard Assets are both extremely fast and secure. It also guarantees universal interoperability between all the assets themselves on the Algorand network. Not to mention that it cost pennies to execute their function as Algorands transaction fees by design are very low.
In short there are officially 4 different types of ASA’s divided into Fungible Tokens, Non-Fungible Tokens, Restricted Fungible Tokens and lastly Restricted Non-Fungible Tokens.
What are some use-cases for Algorand Assests?
For example using ASAs it’s possible to represent credit- or bonus systems (think loyalty points, in-game points) or representing a given collectable or unique item. It can even be used to represent and verify a house deed (ownership of a property). Another usage case may be to represent a stable coin - in that case it’s referred to as a fungible asset.
In addition it can serve to be a method of certification - i.e. verifying the legitimacy of a vaccination passport or to securely validate a transaction.
Finally there are many more usage-cases not brought up in this article, and currently it’s possible that we will see some very interesting concepts and use-cases for ASA’s in the upcoming future.
What are some of the current Algorand Standard Assets?
Yieldly
Current use-cases among others include staking and non-loss gambling on Yieldly. Yieldly, an ASA token, can be staked through Yieldlys interface to participate in non-loss prize-games where winners can be rewarded weekly with either ALGOs or NFT’s (be sure to read our article on NFT’s coming soon).
In addition there is the possibility to stake your yieldly tokens for a given APY (annual percentage yield) of additional yieldly. Recently Yieldly announced that you can even stake yieldly for another ASA token - namely Opulus. Again - the benefit of universal interoperability of different ASA on the Algorand network.
Lofty
Another unique ASA is Lofty.ai, where anyone with an Algorand Wallet can invest into the property market with as little as $50. This is done by using Loftys own asset system on the Algorand network. The token balance will update over time in the Algorand Wallet based on the properties fair-market-value and your daily rental income.
Tacocoin
Moreover there’s the less well-known ASA named Tacocoin - a token created in late 2021 for a small Taco store called “Dora’s Tacos” based in the US. This particular ASA’s purpose is to facilitate fast transaction speed matched with discounts, as well as allowing for a loyalty program. This is just one of many small examples how Algorand can be used to the benefit of small businesses.
Final words
I appreciate you taking time reading this article about ASA’s - Algorand Standard Assets. Hopefully you have solidified your knowledge on Algorand even further. If you enjoyed this post, maybe check out “What is Algopay?” that I wrote last week. Another option is to reward yoursel with some well-earned rest after accruing all this new information. Please leave any feedback in the comment section below.
Either way - Algo and out.
AlgoDaddy
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