Staci Warden, CEO of the Algorand Foundation, made statements about the role of blockchain technology in finance.
Staci Warden, CEO of the Algorand Foundation, stated in a recent interview with Yahoo Finance Live that while blockchain is often seen as a ledger for tracking cryptocurrency payments, it has the potential to facilitate a wide variety of financial transactions. According to Warden, blockchain has the potential to accelerate international financial transactions much more efficiently than traditional banking systems, as it eliminates the need for intermediary banks.
Transactions are Faster and Safer with Blockchain
Warden also stated that blockchain works on a unique ledger system unlike any other. The CEO exemplifies this situation, noting that when someone in Brazil wants to send $10 to someone in France, the payment usually goes through the US banking system and is cleared at the FED. However, this process causes a fee cut of around 6 or 8 percent, and it can take up to four days for the payment to reach its target.
In response, Warden pointed out that using Algorand’s blockchain technology, the same transaction between Brazil and France happened instantly, without any explanation.
Claiming that speed is the key factor in this regard, Warden stated that Algorand is currently able to process about 6,000 transactions per second, and they plan to increase to 10,000 transactions per second later this year. According to Warden, a transaction that can take quite a while to be processed through other systems can be completed in just 3.9 seconds using Algorand’s blockchain technology.
Warden also highlighted the transparency advantages of blockchain technology, which allows transactions to be easily tracked, despite ongoing investigations into crypto companies for fraudulent activities.
Warden explained that blockchain-based financial transactions can be safe from hackers due to the decentralized nature of the blockchain network. Warden also stressed that a single ledger must be decentralized to remain secure.
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