The current financial system is outdated and is therefore inefficient, operating with old and unreliable tools.
There are countless challenges faced by both the users in the financial system today, and the financial institutions overseeing financial activities.
Setbacks which the users are forced to endure while using the services of the financial institutions today, are so numerous that a lot of them are forced to look for other alternatives, as these challenges lead to loss and other devastating outcomes.
Take the case of a businessman who wishes to carry out transactions, with the current financial system, are limited by the slow speed with which the system operates, leading to long waits for them, which obviously means loss of customers and funds for them.
The poor security system of financial institutions is another alarming concern, as security is supposed to be another important factor every system should worry about, aside customer satisfaction. But the case is entirely different with the current financial system, and that is not a system upon which the global population can rely.
In the financial channel today, the presence of intermediaries makes it difficult for the global users to enjoy transactions on the system, because of how costly they make the transactions, which in most cases, individual users or those running businesses cannot afford to pay, and when they manage to pay these fees, they are left with very little or no profit at all.
The direction towards which the world is moving today, will tell you that something big is already happening in the financial system.
But, why? What is behind the ongoing revolution in the financial system?
The answer is Digitalization, it is having a great impact on nearly every system, which the financial system is one.
Leveraging on the numerous advanced technologies being developed, a lot of FinTech companies are entering into the financial system, coming up with new and better ways to transact, which will give more value to the users.
Now financial banking activities, trading and other financial activities are now done digitally with ease.
THE BLOCKCHAIN TO IMPROVE DIGITAL TRANSACTIONS
Because of the benefit offered by digital transactions, platforms, establishments as well as other systems are already changing the ways they carry out financial transactions so that they will not be subject to the inefficient financial system, ridden with risks or be left out on the unlimited benefits associated with the new found digital finance.
Despite the financial growth which comes as a result of the digital way of doing things, a more improved technology has been developed in the digital system which has taken the entire digital operation to a whole new level, due to how efficient it is.
This technology is called the Blockchain technology.
Blockchain technology is a next generation technology which has facilitated the creation of numerous financial tools, with which the financial system is gaining momentum, because these tools developed on the Blockchain makes the financial institutions as well as financial platforms, to perform efficiently, handing to its users a fully operational system where they can comfortably carry out their financial activities.
For thousands of these financial tools to be created, the use of an improved Blockchain is required as a regular Blockchain will be unable to facilitate this great change in the financial system, on a global scale.
ALGORAND IS CREATING A NEW WORLD OF FINANCE
Algorand, a system which is headed by Silvio Micali, a Turing award winner, intends to impact greatly on the global system, including the financial system, hence its creation of the superior Blockchain called the Algorand Protocol.
The Algorand Protocol is an advanced open-source Blockchain, that is made to be permissionless, public and operates with the Pure Proof-of-Stake (PPoS) algorithm, as a consensus, and has amazing features that lets it revolutionize the global financial system.
Algorand will realize this dream by facilitating the creation of different financial tools, which could be applied to the various financial institutions, to improve their services and improve the value given to users.
Before we get into how Algorand will drive the development of varieties of financial tools, let’s see,
ALGORAND SOLVE THE PROBLEMS OF THE FINANCIAL INSTITUTIONS TODAY
● Algorand is not centralized like the financial systems we have today, rather it is decentralized to the core, ensuring any system where it is integrated gets to enjoy decentralization as well. So imagine a technology like this being integrated into the financial institutions today, it will lead to other solutions like…
● Security of user’s funds and records while managing and making transactions.
The security on Algorand is top-notch, as it is not just hackable, but also impossible to be manipulated or for records stored on it to be altered and with its transaction finality ensures that every transaction is final on the system.
Yes, you read right.
Algorand is about to create a completely new world of finance, upon its integration with the financial system and every other platform.
● The speed of operations will be increased and the cost for transactions reduced to its lowest, with the incorporation of Algorand into the financial system.
Since the Blockchain has a very high transaction throughput, executing up to 1,000 transactions at a time and at an amazing speed, the major problem of the financial institutions today will be solved as every transaction will take less time to execute, at a low cost.
● Superiority of the Blockchain, is another important feature with which Algorand Blockchain solves problems which looks almost impossible on other Blockchains.
By being superior, it means that it is able to deliver all the aforementioned features to users, without giving up any in the process, making sure that the users are not denied any of the Blockchain benefits.
HERE IS HOW ALGORAND WILL FACILITATE THE DEVELOPMENT OF FINANCIAL TOOLS
Algorand allows developers to build different financial tools on its Layer-1 smart contract, which has proven more efficient than other Blockchain smart contracts out there due to its tamper-proof design, making the creation of Dapps with financial use cases to be created.
This great platform has a great interoperability ensuring that it can be integrated into any system and used to create wonderful financial tools, and released for use in the real world, at a very low cost.
Another tool made available by Algorand to make development of financial tools easy, is the ASA (Algorand Standard Assets), to give users the opportunity to create their own assets, seamlessly providing ways for the easy transfer of the assets through Atomic Transfers.
By combining the solutions to the problems of the financial system provided by the Algorand system, and the financial tools which will be created with its Blockchain protocol, a new financial world would be created, for the benefits of the global population.
As earlier stated, a regular Blockchain lacks what is needed, and is unable to facilitate the improvement of the financial system on a global scale, but Algorand is not a regular Blockchain, so it has provided exactly what the world needs, an efficient financial system.