The Algorand Foundation CEO spoke about the role of blockchain in the financial system and its advantages over traditional banks.

Staci Warden, in an interview with Yahoo Finance Live, noted that in the ordinary sense, the blockchain is a ledger for tracking cryptocurrency transactions. However, the range of possibilities for the technology is much wider – it can significantly simplify settlements and money transfers, the CEO is sure. With the help of the blockchain, international financial transactions are carried out much faster and more efficiently, since there is no need for the intermediary services of banks, Warden told the Yahoo audience.

The head of the Algorand Foundation gave an example: when a person from Brazil sends $10 to a friend in France, the payment usually goes through the US correspondent banking system and clearing at the US Federal Reserve System (FRS). This process incurs a 6-8% fee and it can take up to four days for the payment to be made.

Blockchain eliminates all of these problems by making it possible to send funds in seconds, without any delay, and speed is a key factor, says Worden. The Algorand network can process about 6,000 transactions per second, and this year it is planned to increase the processing speed of transactions to 10,000 transactions per second, the company’s CEO promises.

Other benefits of blockchain are transparency, which makes it easy to track transactions, and immutability of data. Due to the decentralized nature of the blockchain, information is stored on different computers, and this indicates the absence of a single central authority that controls the registry, the head of the Algorand Foundation listed. Even if one computer is attacked, the system will continue to function, Warden said.

Last year, the Central Bank of Italy chose the Algorand blockchain to develop an open Digital Guarantee platform to serve the banking and insurance markets.