The Algorand-supported platform is expected to launch in early 2023.
A bank guarantee is when a lending institution promises to cover a loss if a borrower defaults on a loan. It’s an alternative to providing a security bond or a deposit to a supplier or vendor. An insurance guarantee is similar but is offered by an insurance company rather than a bank.
Algorand said that blockchain technology was ideally suited for the “digital sureties” platform because of its fast, efficient, low-cost and scalable data transactions, as well as its ability to provide protection against fraud.
Algorand had increased its transaction speed, processing capacity, and cross-chain functionality with a major protocol upgrade. The layer-1 blockchain network implemented state proofs to its main net, enabling trustless communication between different blockchain protocols.