Algorand seems somewhat of a sleeping giant right now and even though the gains have been fantastic over the last few months. I can’t help feeling this one hasn’t reached anywhere near its potential, yet…
In this article, I look at some of the fantastic partners and potential of Algorand.
Algorand, the borderless economy connected to ISDA, CBDC’s…
Yes, that’s correct, Algorand is a member of ISDA and some of you may ask…
Who are ISDA and what’s the big deal?
ISDA is the International Swaps and Derivatives Association. ISDA was established in 1985 and is responsible for the ISDA Master Agreement; an article which is the most commonly used master service, setting the standards for over-the-counter derivatives transactions internationally.
They have 925 members from a wide range of industries such as derivatives market participants, corporations, investment managers, energy and commodities firms, international and regional banks.
So, where is the link between Algorand and ISDA? Well, you can check the ISDA website for yourself and this blog post from Algorand. Here you can see that not only is Algorand a member but they have worked together exploring ways to use the Algorand blockchain.
Last year, Algorand and the International Swaps and Derivatives Association (ISDA) began to explore new ways to use the Algorand blockchain to enhance the implementation of the ISDA Common Domain Model (CDM). Since then, Algorand has developed several new features such as Algorand Standard Assets (ASAs) and Layer-1 TEAL smart contracts (ASC1s) which will significantly help ISDA CDM users create innovative applications of the CDM on the Algorand blockchain.By: Andrea Civelli and Jake Greenstein
Algorand is also named a CDM champion on the ISDA website.
What’s a CDM and what does this mean for Algorand?
ISDA’s CDM (Common Domain Model) has the objective to standardise how derivatives are traded and managed through their lifecycle. ISDA can see that the current infrastructure of derivatives is hugely inefficient and expensive. Their CDM will change this, it will enable automated solutions for firms that are scalable and interoperable.
Here’s what they say on their website…
The reason I highlight smart contracts is that it’s one of Algorands functions on Layer 1. Algorand Smart Contracts (ASC1) are written in Transaction Execution Approval Language (TEAL).
There is no hiding the fact the Algorand has had a massive part to play in this. Just a quick look at the blog post and we can see that this is mainly running through Algorand.
The integration of the ISDA CDM model and the Algorand ASAs and ASC1s has the potential to greatly reduce the complexity of managing portfolios of derivatives and other financial instruments in full compliance of the ISDA CDM and all the underlying regulations. This would allow for a reduction of the costs necessary to manage and execute financial contracts, without giving up speed and accuracy.Algorand
Amazing folks but what companies are actually members of ISDA? Is this actually a big deal?
You bet it is! When I thought about writing this article I hadn’t actually looked through the members yet. Opening up that page I was blown away! Below are just some of them.
Honestly, I couldn’t believe my eyes when I looked through the list. You can see the rest of them here!
What about the CBDC’s that you were linking Algorand with?
Don’t worry I haven’t forgotten about it and I doubt you will either. The exciting news is that Algorand HAS been linked with 16 Central Bank Digital Currencies. Algorand recently put out information on the change to using digital currencies they were joined by other OMFIF members including Mastercard and Paypal.
You can download and read the full report here!
To me, it’s pretty clear that Algo has a bright future ahead and for those holding, things are looking very good indeed! And before you ask, YES I am invested! No, this is not shilling, you can check everything yourself and I will supply the evidence along the way…
Currently sitting around $1.20, digitalcoinprice.com is predicting it to fly in the next few months, let alone by the end of 2025! You can earn every day by holding your ALGO in the Algorand Wallet app. Visit your app store and get in on your phone now!!!
I’ve posted this video before, don’t shoot! I just want you to know what all the hype is about. Watch this video, you can skip ahead to 49 minutes…