It’s a way for app developers to get in touch with Ethereum. Ten million dollars are going to make the network Ethereum Virtual Machine-friendly.
Algorand Foundation CEO Staci Warden made the announcement at the ETH Denver conference on Thursday night. She said that Algorand is putting up $20 million in funding to speed up development in its ecosystem.
Ten million dollars in grants will go to developers who can come up with ways to make the Ethereum Virtual Machine (EVM) work with new networks that want to compete with established ones. Applications built on Ethereum or other Ethereum-compatible chains can run on Algorand, too. This is because Algorand is EVM-compatible.
It comes as more and more blockchain projects that are rich in tokens are using funding incentives to get developers to work on their ecosystems.
“We’re committed to a multichain world,” Algorand Foundation CEO Staci Warden told in an interview at ETHDenver. “We’re inspired by the depth of talent and activity in the Ethereum network.”
— Algorand (@Algorand) February 18, 2022
Warden told that the rest of the $10 million will go to projects that can make Algorand’s developer tools more powerful. There are a lot of products that make it easier to make apps for Algorand, like compilers and debugging tools.
“We’re not going to dictate what the solutions are,” said Warden. “Our goal is to get the best minds working on this.”
It is hoped that both programs will add more projects to the chain. Algorand would be able to reach out to a large group of Ethereum-based developers and also get new developers on board by making it easier for them to build on Algorand.
“The pitch is the tech,” said Warden, when asked about Algorand’s appeal against a sea of base blockchain layers competing for developer talent. “We simply have the best tech.”
Algorand claims to be able to do up to 10,000 transactions per second, at a cost of only a few cents each. Last year, layer 1s became popular because Ethereum users complained about high transaction fees. Layer 1s are cheap and fast.
He said Algorand is also working on “state proof” technology, which would let developers take pictures of blockchains at different points in time. There would be a “snapshot” or “state proof” that would be the source of truth, which would allow transactions to be done through a smart contract instead of through 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 Messari, Algorand is one of the top 30 blockchains. It has a market value of almost $6 billion.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.