While blockchain is just seen as a ledger to record crypto payments, it can, in fact, be used for any type of financial transaction, Algorand Foundation CEO Staci Warden told Yahoo Finance Live (video above).
Warden explained that blockchain can streamline international financial transactions much faster than traditional banking systems because there is no bank acting as a middleman.
“A blockchain is a completely different animal. It's one ledger. If somebody in Brazil wants to send somebody in France $10, it has to travel through the correspondent banking system of the U.S. [and] clear at the Fed. Somebody takes between 6% and 8% off the top, and it might get there four days later. So that transaction between, say Brazil and France, will happen immediately on Algorand,” Warden said.
It's all about speed, Warden added. “We do about 6,000 transactions per second, moving to 10,000 transactions per second this year. It'll happen in 3.9 seconds on Algorand,” Warden said.
While crypto companies are under investigation for fraud, Warden touted the transparency of being easily able to trace transactions through blockchain.
"Transactions are entered, and then they are immutable. It is about integrity. And so that you know when something is entered, nobody else can mess around with it, ” Warden said.
Warden told Yahoo Finance Live that financial transactions can be hacker-proof because the blockchain is decentralized and the information is not just stored on one computer.
“If it's one ledger, you can't have one entity control that ledger. It has to be decentralized because if one, you know, computer gets attacked, it has to be able to live in a healthy manner on all of the other computers,” Warden said.
Ella Vincent is the personal finance reporter for Yahoo Finance. Follow her on Twitter @bookgirlchicago
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