Algorand Foundation CEO Staci Warden stated that although blockchain is typically thought of as a ledger just for monitoring cryptocurrency payments, it has the ability to support a wide range of financial transactions in a recent interview with Yahoo Finance Live.
As there is no need for an intermediary bank, according to Warden, blockchain has the ability to speed up international financial transactions significantly more quickly than conventional banking systems.
She added that blockchain utilizes a distinct ledger system that is unmatched by any other.She gave an example, saying that when someone in Brazil wants to send $10 to someone in France, the money usually flows through the correspondent banking system of the United States and clears at the Fed. It may take up to four days for the payment to arrive at its destination, and there is a charge deduction of about 6-8% as a result of this process.
She explained that by contrast, the identical transaction between Brazil and France would take place instantaneously and without any delay if Algorand‘s blockchain technology were used.
According to Warden, speed is the most important consideration. Algorand can presently process about 6,000 transactions per second, with hopes to expand that number to 10,000 transactions per second later this year.
She claims that with Algorand’s blockchain technology, a transaction that could take other systems a long time to process can be finished in just 3.9 seconds.
Despite ongoing inquiries into cryptocurrency firms for possible fraud, Warden emphasised the advantages of blockchain technology’s transparency, which makes it simple to track down transactions. Furthermore, once transactions are entered, they become immutable, the CEO continued. Integrity is a key factor. And nobody else can tamper with it, so you know when something is input.
According to Warden, the blockchain network’s decentraliszd structure makes financial transactions based on it secure from hackers.Since the data is spread across multiple computers, the ledger cannot be controlled by a single party.
She also underlined the need for decentralization in order for a single ledger to remain secure. The system can continue to work and remain secure on the other computers in the network even if one machine in the network is attacked.
