Algorand is a blockchain platform of layer-1 and they have decided to extend support to new-age digital platforms for guarantees. This has never happened for any public blockchain but Algorand took the step to give backing to the insurance and banking market-based in Italy.
This platform will be launched by the beginning of 2023 as announced by this blockchain platform on 13th December. This marks the first instance for any member of the European Union (EU) to utilize blockchain technology solely for insurance and banking guarantees.
First-Ever Blockchain Technology For Algorand
When an institution lends money by promising to pay for any loss incurred by the borrower for the loan, it is known as a bank guarantee. This is the alternative to giving a deposit or security bond to any vendor or supplier. Insurance guarantees can be similar with the exception of the insurance company lending insurance instead of the bank.
In addition, the firm mentioned that this technology of blockchain is best suited for digital guarantees since it is low-cost, scalable, efficient, and fast. Moreover, these data transactions are capable of giving protection in the event of fraud.
Digital Sureties At The Forefront
CETIF, Center on Finance, Innovation, and Technologies, of National Resilience and Recovery Plan as well as Milan Catholic University organized this digital surety supported by blockchain. This initiative is expected to boost the economic structure of Italy after the damages from the COVID-19 pandemic.
CETIF professor, Federico Rajola, mentioned the unparalleled innovation of Algorand as the main reason for choosing their digital technology. Algorand also excels in conducting ledge technologies in a digital manner that requires no permission along with their sustainability in terms of leadership. Algorand’s transaction speed was between 1,200 and 600 every second after this recent upgrade.