CEO of Algorand Foundation explains Blockchain’s role in finance by CoinEdition

by Arthur · March 13, 2023

Algorand Foundation CEO Staci Warden talked about blockchain in an interview with Yahoo Finance Live.
Warden spoke about the potential of blockchain technology’s role in financial transactions.
Algorand’s blockchain technology can process transactions much faster than traditional banking systems.

In a recent interview with Yahoo Finance Live, Algorand Foundation CEO Staci Warden expressed that while blockchain is often seen as a ledger solely for tracking cryptocurrency payments, it has the potential to facilitate a wide range of financial transactions.

According to Warden, blockchain has the potential to speed up international financial transactions much more efficiently than traditional banking systems, as it eliminates the need for an intermediary.

Furthermore, she stated that blockchain operates on a unique ledger system, unlike any other. Citing an example, she stated that when a person in Brazil intends to send $10 to someone in France, the payment usually goes through the correspondent banking system in the United States, clearing at the Fed. However, this process entails a fee deduction of around 6-8%, and the payment can take up to four days to arrive.

In contrast, using Algorand’s blockchain technology, the same transaction between Brazil and France would happen immediately, without any delay, according to her explanation.

Claiming that speed is the key factor, Warden stated that Algorand can process approximately 6,000 transactions per second currently, with plans to increase to 10,000 transactions per second later this year. According to her, a transaction that can take quite a long time to process through other systems can be completed in just 3.9 seconds using Algorand’s blockchain technology.

Despite ongoing investigations into cryptocurrency companies for fraudulent activities, Warden highlighted the transparency benefits of blockchain technology, which makes it easy to track transactions. Furthermore, the CEO added,

Transactions are entered, and thereafter they are immutable. It’s about integrity. And so you know when something is entered, no one else can mess with it.

Warden explained that blockchain-based financial transactions can be secure from hackers due to the decentralized nature of the blockchain network. The information is not stored on a single computer, ensuring that no single entity is in control of the ledger.

In addition, she emphasized that for a single ledger to remain secure, it must be decentralized. This is because if one computer on the network is attacked, the system can continue to function and remain healthy on the other computers on the network.