Algorand Targets Ethereum Compatibility With New $20M Program

February 19, 2022 1:59 pm

Algorand is looking to be able to get involved in supporting applications that were originally built on Ethereum to make the blockchain network truly compatible for a wide range of applications.

In order to make this a reality, the company is putting forth $20 million in order to help entice developers to help accelerate this new initiative.

This new goal was announced by Algorand Foundation CEO Staci Warden at the EthDenver conference and company officials believe that this would be a key initiative for them to help take advantage of established projects.

CoinDesk reports:

Foundation officials said $10 million in grants would go to developers that can provide solutions for Ethereum Virtual Machine (EVM) compatibility, a key cog for emerging networks looking to woo established projects.

For Algorand, EVM compatibility means applications that are built on Ethereum or other Ethereum-compatible chains can also execute on Algorand.

The announcement comes as token-rich blockchain projects increasingly turn to funding incentives to lure developer talent into building out their ecosystems.

“We’re committed to a multichain world,” Algorand Foundation CEO Staci Warden told CoinDesk in an interview at ETHDenver. “We’re inspired by the depth of talent and activity in the Ethereum network.”

Warden told CoinDesk the other $10 million will go toward projects that can build robust developer tools for Algorand. Developer tools are suites of products that make building applications on Algorand easier, such as compilers and debuggers.

The company is also open to advice from the developers and wants the developer community to have the biggest say on where the network goes in the future.

As a result of these incentive programs, investors are expecting the number of projects on the chain to start increasing significantly.

With this push, Algorand will be able to tap into the large Ethereum development community which is currently still the most popular place for new dev projects despite some concerns regarding the ETH network.

At the same time, building on Algorand will become much easier due to its new compatibility and the company believes that its superior technology will eventually attract more development talent.

As of now, the network is able to execute around 10,000 transactions per second with each transaction only costing a fraction of a cent.

Yahoo reports:

Algorand claims to be able to execute up to 10,000 transactions per second, costly only fractions of a cent per transaction. Last year, cheap and fast layer 1s experienced an influx of interest as Ethereum users complained about high transaction fees.

Warden told CoinDesk that Algorand is also spearheading “state proof” technology, a feature that would allow developers to take a snapshot of a blockchain in time.

The snapshot or “state proof” would serve as a source of truth, allowing transactions to be completed via a smart contract instead of a consensus bridge.

“In the medium term, our goal is to be the layer 1 that can enable financial inclusion,” said Warden. “We believe in a multichain world, but if there’s only one settlement chain it’ll be Algorand for sure.”

According to data from Messari, Algorand is among the top 30 blockchains, with a market capitalization of nearly $6 billion.

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.