Blockchain is a special database that is increasingly used in financial services because it makes transactions more secure and efficient.
• Accessibility and unalterability. Blockchain is a transparent, secure register. In other words, it is a database accessible to all interested parties, guaranteeing that everyone reads the same information and no one can delete or alter it.
• Decentralization. Blockchain is not centralized but governed by multiple servers. This characteristic prevents the database from being compromised if one or a few servers are attacked.
• Blocks. In the blockchain, transactions are grouped into blocks. Each block is anchored to its predecessor, forming a secure chain: not just the content, but also the order, of the blocks is unalterable.
• New blocks. When a new block is proposed, before it is added to the chain a consent algorithm ensures that all agree on the transactions it contains and their validity.
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The terms “blockchain” and “cryptocurrency” are often confused and it is important to distinguish between them.
Cryptocurrencies are digital currencies not issued by central banks.
Blockchain is a digital platform that can benefit everyone: individuals, companies and institutions.
• Authenticity, integrity and tokenization.
The representation of physical and financial assets in the blockchain makes two crucial aspects clear: their authenticity and who possesses them at any given time.
These aspects are automatically maintained, including by dividing assets into small lots (tokenization).
Tokenization increases liquidity enormously. If an asset is worth €100 million, it is easier to sell one million lots of €100 each than the entire asset.
• Smart Contract.
Thanks to smart contracts, transactions are executed automatically when pre-established conditions occur.
Let us suppose that A(lbert), B(eatrix) and C(arl) all must pay €100, and no one wants to be the only one to pay. It is clear that A does not want to pay first without knowing what the others will do. The same is true for B and C.
In this case, A, B and C can pay their €100 to a Smart Contract (SC) with the following condition: if the SC receives all €300 in one hour, it will pay D. Otherwise, at the end of the hour, it will refund the €100 to those of A, B and C who have paid it.
• Yet that is not all.
The advantages described above are just some examples of the enormous value of blockchain for the country and its financial markets.
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Not all blockchains are created equal.
Some are decentralized but offer poor performance.
Others are fast but are not truly decentralized.
Still others go down for periods of several hours a month.
Then there is the Algorand blockchain. Let us show you why it is right for you.
In contrast to other blockchains, it has never gone down: zero downtime, even under strain. With Algorand you will always be able to manage your transactions!
Up to one billion transactions a day. Less than one euro cent per transaction.
Low energy consumption from day one and carbon-neutral since 2021
Other blockchains are subject to forking. During a fork, the chain splits into two (or more) branches. As a result, a person may possess an asset in one branch, and another person can possess the same asset at the same time in another branch. At the end of the fork, one of the two branches will disappear, along with all its blocks and the transactions they contain. These disappearances and temporary ambiguities of possession are incompatible with the certainty required by the financial sector. With Algorand there is no ambiguity: there is always just one transaction history. When a new block appears in Algorand, users can rely on the transactions it contains immediately (immediate finalization). The absence of forks means that the new block will remain in the blockchain forever.
Smart contracts execute transactions automatically when pre-established conditions occur. In other blockchains they are expensive, slow and only completed after a series of steps, meaning the outcome is uncertain until the final step is completed. Instead, Algorand offers fundamental smart contracts that, at a cost of less than one euro cent, operate in a single step and in just three seconds, thereby eliminating all uncertainty. Let us consider an example: Immediate payment versus delivery
With Algorand, the exchange of two assets (for example, a bond and cash) takes place via a smart contract executed in a single block, thus making it impossible for one party to receive its asset without the other party receiving its own. This characteristic of Algorand eliminates all counterparty risk.
In contrast to other blockchains, it has never gone down: zero downtime, even under strain. With Algorand you will always be able to manage your transactions!
Up to one billion transactions a day. Less than one euro cent per transaction.
Low energy consumption from day one and carbon-neutral since 2021
Other blockchains are subject to forking. During a fork, the chain splits into two (or more) branches. As a result, a person may possess an asset in one branch, and another person can possess the same asset at the same time in another branch. At the end of the fork, one of the two branches will disappear, along with all its blocks and the transactions they contain. These disappearances and temporary ambiguities of possession are incompatible with the certainty required by the financial sector. With Algorand there is no ambiguity: there is always just one transaction history. When a new block appears in Algorand, users can rely on the transactions it contains immediately (immediate finalization). The absence of forks means that the new block will remain in the blockchain forever.
Smart contracts execute transactions automatically when pre-established conditions occur. In other blockchains they are expensive, slow and only completed after a series of steps, meaning the outcome is uncertain until the final step is completed. Instead, Algorand offers fundamental smart contracts that, at a cost of less than one euro cent, operate in a single step and in just three seconds, thereby eliminating all uncertainty. Let us consider an example: Immediate payment versus delivery
With Algorand, the exchange of two assets (for example, a bond and cash) takes place via a smart contract executed in a single block, thus making it impossible for one party to receive its asset without the other party receiving its own. This characteristic of Algorand eliminates all counterparty risk.
algorand