Applied Blockchain to build a trustless bridge connecting Algorand and Ethereum

The Algorand Foundation has given Applied Blockchain a grant to construct the London Bridge, a trustless bridge between Algorand and Ethereum.

Applied Blockchain to build a trustless bridge connecting Algorand and Ethereum

The Foundation stated in a news statement that the bridge would also allow Algorand to integrate with other blockchain networks and bring a major inflow of liquidity to the developing network.

Algorand’s liquidity issues are soon to be resolved

Despite its low latency, excellent scalability, and cheap transaction costs, Algorand has had difficulty attracting liquidity. With the bulk of DeFi and NFT projects now residing in the Ethereum environment, consumers have been experiencing a lack of network impact.

To remedy this, the Algorand Foundation, a non-profit tasked with assisting the network’s growth, has offered a grant to build a bridge solution that would connect the blockchain to Ethereum.

The grant was awarded to Applied Blockchain, a London-based software development business, which will utilize the funds to bring the scaling solution, known as the London Bridge, to market. The business is already working on other Algorand-based apps, making it an obvious choice to continue to develop London Bridge.

The firm will collaborate with Algorand Inc. to make London Bridge a safe, low-cost, and simple interoperability solution.

The Foundation told CryptoSlate that the Foundation’s long-term plan is to have all verification of the other chains handled within Algorand’s smart contracts. Algorand Inc. will add state proofs in the form of Compact Certificates into the Algoran Consensus to accomplish this.

Applied Blockchain and Algorand Inc. will collaborate to allow London Bridge to trustlessly validate both block headers and the status of other blockchains in their respective smart contract settings.

According to Daniel Yang of the Algorand Foundation, the relationship with Applied Blockchain would allow them to consolidate a DeFi infrastructure on Algorand, eventually transforming it into an environment where decentralized finance may thrive. Adding cross-chain efficiency to the network will provide it with a continuous flow of TVL from Ethereum while also adding its low cost and transaction speed to other networks.

Applied Blockchain’s founder and CEO, Adi Ben-Ari, told the press that the business is looking forward to providing the best bridge solution.