The company will use the funds for the development of London Bridge — a trustless solution that will link Algorand to Ethereum.
In its recent press release, the Algorand Foundation announced that it awarded a grant for the development of the so-called London Bridge — a trustless bridge that will connect it to Ethereum’s network. The bridge is being developed by Applied Blockchain, and the Foundation expects that it can be used to integrate Algorandwith other blockchain networks as well.
A Great Opportunity for Algorand
The London Bridge represents a massive opportunity for Algorand. It means that the project will gain access to other networks, which is a positive development for the progression of Web3, and Algorand’s own interoperability. But, more importantly, it will also allow for a huge influx of liquidity to the growing network.
Despite having numerous advantages over networks such as Ethereum–sporting high scalability, low transaction cost, and low latency — Algorand struggles with many issues. One of them is lack of liquidity, especially as Ethereum dominates the industry in terms of DeFi and NFT projects that run on its network.
The Algorand Foundation has decided to address this by providing a grant for a bridging solution that will connect Algorand to the industry’s largest development platform. The grant was given to a London-based software development firm called Applied Blockchain, which will use the funding to develop the London Bridge.
Apart from the London Bridge, Applied Blockchain is working on several other applications on Algorand, which made it a clear choice for the Algorand Foundation. The company will join forces with Algorand Inc. to ensure that London Bridge will be low-cost, safe, and easy to use.
Additional Benefits of the London Bridge
The project’s long-term plan is to have all verification of other chains performed in Algorand’s smart contracts. Algorand intends to achieve this by incorporating state proofs into the Algorand Consensus. Through the collaboration, the two companies will enable London Bridge to validate the state of other chains and block headers trustlessly.
Algorand Foundation will also be able to use this partnership to allow Applied Blockchain to cement a DeFi infrastructure on Algorand’s network. This will help the ecosystem become a space where DeFi can thrive.