Algorand, a Layer-1 blockchain technology platform, has been selected as the official blockchain in Italy to facilitate banks as well as to guarantee insurance.
The EU’s first blockchain-based digital guarantee
Beginning in early 2023, the Italian financial and insurance industries will adopt the Algorand-supported virtual guarantees system. The corporation made the announcement on December 13 at a three-day conference organized by the Catholic University of Milan’s Research Center for Technologies, Innovations, and Finance (CETIF).
It’s the first time an EU nation utilize blockchain solutions for bank and insurance guarantees, according to the announcement. For the nation’s banking and insurance industries, the center has been concentrating on creating a blockchain-based infrastructure for a “Digital Sureties” platform.
Rather than having to give an installment or a deposit bond to a vendor or merchant, a borrowing organization would be required to pay for the loss under the bank guarantee if a borrower defaulted on a loan. In a similar manner, if an insurance guarantee failed, the insurance company would be responsible for paying the deficit rather than the bank.
Information About The Digital Sureties Platform
The Italy’s central bank and the Italian insurance regulator IVASS have both given their support to this new Digital Sureties network, which is being built by the CETIF administration.
Federico Rajola, a professor at CETIF, discussed why Algorand was selected as the project’s blockchain, in his words
“We chose Algorand based on its unmatched level of security and creativity among permissionless DLTs, along with its creativity in conservation. Our objective is to assist Italy in overcoming the economic effects of COVID-19 and achieving excellence via creativity and leadership. Our ecosystemic initiatives are aimed to contribute to the creation of important platforms like the Algorand-supported Digital Sureties platform. We are confident that these networks can and will make a significant contribution to the competitive sustainability of the nation for the good of everybody.”
Other Algorand Projects
Algorand has been expanding for some time. The protocol had a significant upgrade in September that increased its transaction efficiency, processing power, and cross-chain capability. In the past, a number of institutions have decided to start their programs on the Algorand blockchain. Miami introduced air reliability monitoring sensors a year ago with the goal of transferring collected sensor data to the Algorand Blockchain. Algorand eventually acquired FIFA’s official blockchain collaborator in May 2022, a few months after that. On the Algorand network, the music streaming service Napster also introduced its own coin.