Algorand Using Blockchain Technology:
According to Algorand, this is the first instance of a member state of the EU using blockchain technology for bank and insurance guarantees.
Blockchain layer-1 platform The Italian banking and insurance industries will adopt an “innovative digital guarantees platform,” which will be supported by the public blockchain Algorand.
Early in 2023, the platform supported by Algorand is anticipated to debut. This is the first time a member state of the European Union would deploy blockchain technology for bank and insurance guarantees, according to Algorand’s announcement on December 13.
-
What Do You Mean By ”Digital Sureties”?
When a borrower fails on a loan, a lending institution provides a bank guarantee that the loss will be covered. It is an alternative to giving a supplier or vendor a security bond or deposit. Similar, but provided by an insurance company rather than a bank, is an insurance guarantee.
According to Algorand, blockchain technology is best suited for the “digital sureties” platform due to its quick, effective, affordable, and scalable data transactions and its capacity to protect against fraud.
Just in: Algorand has been selected to be the public blockchain that will support an innovative digital guarantees platform in Italy.
This new Digital Sureties platform is being developed by @Cetif1 and endorsed by @bancaditalia and @ivassocial: https://t.co/EBsOkBEwcb pic.twitter.com/dCFatoYILk
— Algorand (@Algorand) December 13, 2022
The Research Center on Technologies, Innovation, and Finance of the Catholic University of Milan (CETIF) is developing the blockchain-backed digital sureties platform as part of Italy’s National Recovery and Resilience Plan, an initiative aimed at accelerating Italy’s economic recovery following the COVID-19 crisis.
Algorand was chosen, according to CETIF professor Federico Rajola, because of its “unparalleled level of innovation” compared to other permissionless digital ledger technologies and its “leadership in sustainability.” He continued:
“Our objective is to assist Italy in overcoming the economic effects of COVID-19 and achieving excellence via leadership and innovation. We are confident that these platforms can and will significantly contribute to the nation’s competitive sustainability for the good of all.”
-
What’s Algorand’s, Processing Speed?
Algorand reportedly improved its cross-chain capability, processing power, and transaction speed with a significant protocol change in September, according to Blockchain Gossips. State proofs were added to the layer-1 blockchain network’s manner, allowing for trustless communication between various blockchain protocols. Algorand’s processing speed was upgraded from 1,200 to 6,000 transactions per second.
Conclusion:
The blockchain-backed Digital Sureties platform is part of an initiative to boost Italy’s economic recovery following the COVID-19 crisis.
