The Algorand Foundation has awarded Applied Blockchain a grant to develop London Bridge, a trustless bridge that will connect Algorand to Ethereum.
In a press release shared with CryptoSlate, the Foundation 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.
Algorand’s liquidity challenges are about to be solved
Despite its low latency, high scalability, and low transaction costs, Algorand has been struggling to attract liquidity. With most of the DeFi and NFT projects now in the Ethereum ecosystem, their users have been struggling with the lack of network effect.
To address this, the Algorand Foundation, a non-profit organization tasked with supporting the development of the network, provided a grant to develop a bridging solution that would connect the blockchain to Ethereum.
Applied Blockchain, a London-based software development company, received the grant and will use the funds to bring the scaling solution, called London Bridge, to market. The company is also working on several Algorand-based applications, making it a natural fit for further development of London Bridge.
The company will work hand-in-hand with Algorand Inc. to make London Bridge a secure, low-cost and easy-to-use interoperability solution.
In the long term, the strategy is for all verification of the other chains to be done within Algorand’s smart contracts, the Foundation told CryptoSlate. To achieve this, Algorand Inc. will incorporate state tests in the form of Compact Certificates into the Algoran Consensus. By working together, Applied Blockchain and Algorand Inc. will enable London Bridge to validate both block headers and the state of other trustless blockchains in their respective smart contract environments.
The Algorand Foundation’s Daniel Yang told CryptoSlate that the partnership with Applied Blockchain will allow them to consolidate a DeFi infrastructure on Algorand, gradually making it an ecosystem where decentralized finance can thrive. Introducing cross-chain efficiency to the network will provide you with permanent TVL transfer from Ethereum and add its low cost and transaction speed to other networks.
Adi Ben-Ari, founder and CEO of Applied Blockchain, told CryptoSlate that the company hopes to develop the most optimal bridging solution.
“We have seen demand for a secure token bridging solution through the many applications we are building for our customers at Algorand. Liquidity and composability are key benefits of blockchain, and a seamless and secure bridge will increase them for all applications on Algorand,” he said.
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This post Algorand is getting a bridge to Ethereum
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