Algorand solves real issues in Latin America

Algorand, as a new generation blockchain network, provides great solutions around the world, but particularly solves essential issues in Latam. The countries of this region face particular adversities, which find viable resolutions thanks to this incredible technology.

Technology for financial inclusion

The most developed countries have easier access to a large number of financial instruments, but the countries of other regions such as Latin America are often excluded. Algorand allows access to financial systems in a much more inclusive way than existing traditional vehicles, while providing immense added value.

Although the countries from the Latam region have some specific differences among themselves, they all essentially share the same general problems. One of the drawbacks that occurs to a greater extent is being able to interact and trade with the world, without the existing barriers to exports. Algorand provides an efficient platform to meet this goal.

Thanks to the tools provided by Algorand, sustainable development can be achieved, while providing financial inclusion for all. That is why a large number of projects are taking advantage of these benefits, with tools such as asset tokenization, which can be used for a wide range of uses. In the following lines we will further develop this type of concept.

Asset tokenization in real life

While asset tokenization has become popular in recent times for art digital works, this is only a limited use. Being able to tokenize a real-life object allows us to turn it into an asset that can be taken to the digital world, to take advantage of it in previously unthinkable ways. In regards to this, we have several projects around the world that are already drawing on these qualities, and LATAM is not alien to this issue.

Just to name an example regarding the real utility of tokenization to solve issues in Latin America, we have the case of Agrotoken. This Argentinian startup manages to take advantage of the performance of Algorand, in order to convert grains, such as soybeans or corn, into digital assets. These tokens are backed, tradable digital assets, and their value is tied to the price of soybeans (SOYA), corn (CORA) and wheat (WHEA). This opens up a universe of possibilities for usability.

This simple model allows tokenization to be carried out 100% online, in order to later receive the “Agrotokens” in a wallet and be able to start using them from a cell phone or computer. Within its uses, these tokens can be exchanged for seeds, vehicles, machinery, fuel, services and much more. Another benefit that these assets present is that they can be used as collateral to request loans.

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Costs, speed and security

One of the great impediments to compete at a global level that occurs in Latin American countries is related to operating costs. Many times, excessive taxes cause prices to increase considerably, therefore, LATAM products are left out of any international competition with respect to other regions.

Due to this, companies from this region must look for alternatives that allow them to reduce production costs, such as payment methods. For this, Algorand offers an efficient solution through tokenization, given that the costs for transactions on this network are barely around 0.001 ALGO, which is its native currency. This is how companies can find an alternative to traditional methods that are very expensive.

Also, the Algorand network has a very high speed to complete operations, which puts it as a better alternative to classic payment methods. This subject is very important, since the transactions are carried out instantly. Another important advantage in this blockchain is its security framework, which guarantees that everything works correctly and without risks, since this blockchain has never suffered vulnerabilities, nor has it stopped since its launch.

Conclusion

Algorand undoubtedly solves problems around the world, but one of the regions that benefits the most from its features is Latin America, given the particular issues that arise in the region. The low operating costs, the speed and the security that this blockchain network presents, allow the development of the countries that make up LATAM, with sustainability and financial inclusion.