The Algorand Foundation has provided funding to Applied Blockchain company to develop London Bridge, a trusted bridge that will connect Algorand and Ethereum. The foundation said in a press release that the bridge will also enable the integration of Algorand with other blockchain networks and provide a significant liquidity flow to the growing network.
Despite low transaction times, high scalability and low transaction cost, Algorand is struggling to attract liquidity. Most of the DeFi and NFT projects are now in the Ethereum ecosystem, so Algorand users are struggling with a lack of liquidity.
To solve this, the Algorand Foundation, a nonprofit tasked with supporting the development of the network, has set aside funds to develop a bridge solution that will connect the Algorand network to Ethereum.
Applied Blockchain, a London-based software development company, will use this funding to launch its scaling solution called London Bridge. The company is also working on various Algorand-based applications. London Bridge is aimed to be a safe, low-cost and easy-to-use solution.
In a statement, the foundation said that their strategy is to perform all verifications of other chains on Algorand's smart contracts in the long term. Applied Blockchain and Algorand Inc. Working together, it will enable London Bridge to reliably verify both the block headers and the status of other blockchains in its own smart contract environment.
The Algorand Foundation said this solution will allow them to consolidate a DeFi infrastructure on Algorand, which will gradually transform it into an ecosystem where decentralized finance can thrive.
Algorand price is hovering around $0.90 at the time of writing. The 24-hour trading volume is $131,512,146. ALGO price is down -3.3% in the last 24 hours. While there is 6.6 Billion ALGO coins in circulation, there is a total supply of 7.06 Billion ALGO coins. Coinbase Exchange is currently the most active market where ALGO is traded.