Algorand to support bank and insurance guarantees platform in Italy

Layer-1 blockchain level Algorand has been chosen arsenic the nationalist blockchain to enactment an “innovative integer guarantees platform” to beryllium utilized successful Italy's banking and security markets.

The Algorand-supported level is expected to beryllium launched successful aboriginal 2023. According to Algorand’s Dec. 13 announcement, this is the archetypal clip an EU Member State volition usage blockchain exertion for slope and security guarantees.

A slope warrant is erstwhile a lending instauration promises to screen a nonaccomplishment if a borrower defaults connected a loan. It's an alternate to providing a information enslaved oregon a deposit to a supplier oregon vendor. An security warrant is akin but is offered by an security institution alternatively than a bank. 

Algorand said that blockchain exertion was ideally suited for the "Digital Sureties" level due to the fact that of its fast, efficient, low-cost, and scalable information transactions, and its quality to supply extortion against fraud.

— Algorand (@Algorand) December 13, 2022

The blockchain-backed Digital Sureties level is being developed by The Research Center connected Technologies, Innovation and Finance of the Catholic University of Milan (CETIF) and is simply a portion of Italy's National Recovery and Resilience Plan (NRRP), an inaugural acceptable to boost Italy’s economical betterment pursuing the COVID-19 crisis. 

Related: Algorand Foundation outlines $35M vulnerability to crypto lender Hodlnaut

Federico Rajola, prof astatine CETIF said they chose Algorand for its "unparalleled level of innovation" among permissionless DLTs and its "leadership successful sustainability," adding: 

"Our extremity is to assistance Italy not lone retrieve from the economical interaction of Covid-19, but besides excel done innovation and enactment [...] We judge these platforms tin and volition dramatically lend to the country's competitory sustainability for the payment of all."

In September, Cointelegraph reported that Algorand had accrued its transaction speed, processing capacity, and cross-chain functionality with a large protocol upgrade. The layer-1 blockchain network implemented State Proofs to its mainnet, which enables trustless connection betwixt antithetic blockchain protocols. The upgrade accrued Algorand’s processing velocity from 1,200 to 6,000 transactions per second.