Guide on Building an Onchain Business on Algorand: Studying the Success of Lofty AI

If you are dreaming of launching an onchain business, Algorand is a name you will want to know. Algorand is a blockchain platform designed with speed, security, and scalability at its core, making it a popular choice for innovative projects looking to leverage blockchain technology for real-world solutions.

With transaction fees that are consistently under a penny and settlement times of just a few seconds, Algorand is uniquely positioned to support businesses that need both efficiency and reliability.

For entrepreneurs, the appeal of Algorand goes beyond just technical specs. The network’s advanced smart contract capabilities allow for the automation of complex business logic, reducing manual overhead and the risk of errors.

Its commitment to decentralization ensures that no single entity can control the network, which is particularly important for businesses seeking transparency and trust from their users.

Perhaps most importantly, Algorand’s architecture supports the tokenization of real-world assets. This means you can represent anything from real estate to art on the blockchain, making these assets more accessible and liquid. This is exactly what Lofty AI has done-using Algorand to transform the way people invest in real estate.

By choosing Algorand, Lofty AI was able to create a user-friendly, secure, and scalable platform that democratizes access to property investment, proving that the right blockchain can be the foundation for a sustainable, impactful business.

Lofty AI’s Journey: From Startup to Profitable Onchain Business

Lofty AI’s story is a shining example for anyone looking to build an onchain business. Founded with the mission to make real estate investment accessible to everyone, Lofty AI leveraged Algorand’s technology to launch a marketplace where users can buy fractional shares of vetted U.S. rental properties for as little as $50.

Each property is tokenized, and these tokens can be bought, sold, or traded at any time, offering liquidity and flexibility that traditional real estate simply cannot match.

What sets Lofty AI apart is its focus on user success. The platform’s internal analytics revealed a direct correlation between user profitability and platform growth-when users make money, they reinvest or use the platform more, driving Lofty’s success.

READ ALSO: Can WLD Survive Its Correction? Looking at WorldCoin's Recent Ban in Kenya and Indonesia

This customer-centric approach has led to rapid growth and, as of April 2025, Lofty AI reported its most profitable month ever, achieving both positive cash flow and accounting profitability. This milestone is a testament to their sustainable business model and the power of aligning incentives between the platform and its users.

Lofty AI’s use of artificial intelligence to vet properties ensures high-quality investment opportunities, while their transparent, blockchain-based system builds trust and lowers barriers to entry.

The platform also empowers users by giving them a say in key property decisions through a democratic voting system, further enhancing engagement and loyalty. Lofty AI’s journey shows that with the right mix of technology, transparency, and customer focus, it is possible to build a thriving onchain business that stands the test of time.

Key Takeaways for Building Your Own Onchain Business on Algorand

If you are inspired by Lofty AI and want to build your own onchain business on Algorand, there are several lessons to take to heart. First, choose a real-world problem that blockchain can genuinely solve.

Lofty AI succeeded by addressing the illiquidity and inaccessibility of real estate investment, using Algorand’s strengths to create a seamless, user-friendly experience.

Second, prioritize user success. Lofty AI’s growth is directly linked to how well its users do on the platform. By ensuring that customers have the tools and incentives to succeed-like daily rental income, transparent financials, and easy reinvestment options-you can build a loyal user base that fuels your business’s long-term growth.

Third, leverage Algorand’s technical advantages. Fast, low-cost transactions and robust smart contracts make it possible to automate processes and keep operational costs low. This allows you to offer competitive pricing and a smooth experience, both of which are critical for user adoption.

READ ALSO: BlockDAG Pre-Sale: How $226 Million of Interest Shows Bullish Signs of BDAG

Finally, focus on transparency and community. Lofty AI’s democratic voting system and detailed due diligence tools empower users and foster trust. By giving users a stake in your platform’s success and clear, accessible information, you can create a vibrant community that supports your business through thick and thin.

Building an onchain business is not just about technology-it is about solving real problems, aligning incentives, and building trust. Algorand provides the foundation, but it is your vision and execution that will determine your success.

Conclusion

Lofty AI’s journey on Algorand is proof that onchain businesses can be both profitable and impactful. By combining the speed and security of Algorand with a customer-first mindset and transparent operations, Lofty AI has shown how blockchain can democratize access to wealth-building opportunities.

If you are ready to build your own onchain business, take a page from Lofty AI’s book: focus on solving real problems, empower your users, and choose the right technology partner. The future of business is onchain, and with platforms like Algorand, that future is more accessible than ever.

FAQs

1. What is Lofty AI and how does it use Algorand?

Lofty AI is a platform that lets users invest in fractional shares of U.S. rental properties, using Algorand’s blockchain for secure, fast, and transparent transactions.

2. Why did Lofty AI choose Algorand over other blockchains?

Lofty AI chose Algorand for its low transaction fees, fast settlement times, and robust smart contract capabilities, making it ideal for real estate tokenization.

3. How can I start an onchain business like Lofty AI?

Identify a real-world problem, leverage Algorand’s strengths, prioritize user success, and maintain transparency to build trust and engagement in your platform.