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Layer-1 blockchain platform Algorand has been chosen as the public blockchain to support an \u201cinnovative digital guarantees platform\u201d to be used in Italy’s banking and insurance markets.<\/p>\n
The Algorand-supported platform is expected to be launched in early 2023. According to Algorand\u2019s Dec. 13\u00a0announcement<\/a>, this is the first time an EU Member State will use blockchain technology for bank and insurance guarantees.<\/p>\n A bank guarantee is when a lending institution promises to cover a loss if a borrower defaults on a loan. It’s an alternative to providing a security bond or a deposit to a supplier or vendor. An insurance guarantee is similar but is offered by an insurance company rather than a bank.\u00a0<\/p>\n Algorand said that blockchain technology was ideally suited for the “Digital Sureties” platform because of its fast, efficient, low-cost, and scalable data transactions, and its ability to provide protection against fraud.<\/p>\n Just in: Algorand has been selected to be the public blockchain that will support an innovative digital guarantees platform in Italy. <\/p>\n This new Digital Sureties platform is being developed by @Cetif1<\/a> and endorsed by @bancaditalia<\/a> and @ivassocial<\/a>: https:\/\/t.co\/EBsOkBEwcb<\/a> pic.twitter.com\/dCFatoYILk<\/a><\/p>\n \u2014 Algorand (@Algorand) December 13, 2022<\/a><\/p><\/blockquote>\n The blockchain-backed Digital Sureties platform is being developed by\u00a0The Research Center on Technologies, Innovation and Finance of the Catholic University of Milan (CETIF) and is a part of Italy’s National Recovery and Resilience Plan (NRRP), an initiative set to boost Italy\u2019s economic recovery following the COVID-19 crisis.\u00a0<\/p>\n Related: Algorand Foundation outlines $35M exposure to crypto lender Hodlnaut<\/em><\/strong><\/a><\/p>\n Federico Rajola, professor at CETIF said they chose Algorand for its “unparalleled level of innovation” among permissionless DLTs and its “leadership in sustainability,” adding:\u00a0<\/p>\n “Our goal is to help Italy not only recover from the economic impact of Covid-19, but also excel through innovation and leadership […] We believe these platforms can and will dramatically contribute to the country’s competitive sustainability for the benefit of all.”<\/p><\/blockquote>\n In September, Cointelegraph reported that Algorand had increased its transaction speed, processing capacity, and cross-chain functionality with a major protocol upgrade<\/a>. The layer-1 blockchain network\u00a0implemented State Proofs to its mainnet, which enables trustless communication between different blockchain protocols. The upgrade increased Algorand\u2019s processing speed from 1,200 to 6,000 transactions per second.<\/p>\n<\/div>\n\n