Algorand’s struggle with attracting liquidity has been obvious despite its low latency, high scalability, and low cost of transactions. It’s users have been struggling with a lack of network effect as the majority of DeFi and NFT projects are in the Ethereum ecosystem. To fix this problem the Algorand Foundation has awarded Applied Blockchain grant to develop the London Bridge, a trustless bridge that will connect Algorand with Ethereum.
Applied Blockchain, a London-based software development company, will use the funding to bring the scaling solution, called the London Bridge, to market. The company is also working on several applications based on Algorand, making it a natural choice to further develop London Bridge.
They said that the bridge will also enable Algorand’s integration with other blockchain networks and provide a significant influx of liquidity to the growing network.
The company will work hand-in-hand with Algorand Inc. in making London Bridge a safe, low-cost, and easy-to-use interoperability solution.
The Foundation have said that the strategy is to have all verification of the other chains to be performed within Algorand’s smart contracts. To achieve this, Algorand Inc. will incorporate state proofs in the form of Compact Certificates into the Algorand Consensus. By working together, Applied Blockchain and Algorand Inc. will enable London Bridge to validate both block headers and the state of other blockchains trustlessly, in their respective smart contract environments.
Applied Blockchain will allow them to solidify a DeFi infrastructure on Algorand, which will gradually turn it into an ecosystem where decentralized finance can thrive. Introducing cross-chain efficiency to the network will provide it with a permanent transfer of TVL from Ethereum and add its low cost and transaction speed to other networks.
“We’ve seen the demand for a secure token bridging solution through the many applications that we’re building for our clients on Algorand. Liquidity and composability are key benefits of blockchain, and a secure and seamless bridge will increase these for all applications on Algorand,” said Adi Ben-Ari, the founder and CEO of Applied Blockchain.
Algorand is a scalable, secure, and decentralized digital currency and smart contract platform. Its protocol uses a variation of Proof-of-Stake (PoS) called Pure PoS (PPoS) to secure the network and reach consensus on block production.
The Algorand Foundation is committed to accelerating the development of a next generation DeFi ecosystem, built on the only scalable and decentralized layer 1 blockchain. The Algorand Foundation announced the 150M Algo Viridis Fund to support and incentivize the creation of the world’s most efficient, scalable, and micro-fee DeFi ecosystem.
Transaction with Algo is in 4 seconds, whether you are the first transaction or the 10 millionth transaction in a day, your Algo transaction will still take place in 4 seconds and are secured by the unique Pure Proof-of Stake consensus that powers the Algorand blockchain.
Unlike many blockchains, where every transaction is hugely expensive, every Algo transaction today, no matter the size, costs a fraction of a penny.
This should give positive feedback to Algorand’s coin price, currently is traded at $0.851 with a marketcap of $5,635,294,659.