Algorand promotes Ethereum compatibility through a $20 million incentive plan

2022-06-06 0 By

To attract application developers, $10 million was earmarked to make networked Ethereum virtual machines compatible.Algorand booth at ETHDenver 2022.Algorand is investing $20 million to accelerate the development of its ecosystem, according to an announcement made Thursday night at the ETHDenver conference by Algorand Foundation CEO Staci Warden.The $10 million grant will go to developers who can provide solutions for Ethereum Virtual Machine (EVM) compatibility, a key cog in the emerging network’s quest to attract established projects, foundation officials said.For Algorand, EVM compatibility means that applications built on Ethereum or other Ethereum-compatible chains can also be executed on Algorand.The announcement comes as token-rich blockchain projects are increasingly turning to financial incentives to attract developer talent to build their own ecosystems.”We are committed to a multi-chain world,” Staci Warden, CEO of Algorand Foundation, told CoinDesk in ETHDenver.We were inspired by the depth of talent and activity in the Ethereum network.Warden tells CoinDesk that another $10 million will be spent on projects that can build powerful developer tools for Algorand.Developer tools are a set of products that make it easier to build applications, such as compilers and debuggers, on Algorand.”We don’t decide what the solution is, “Warden says.Our aim is to get the best people to do the work.Both projects are expected to increase the number of projects in the chain.”These two goals will allow Algorand to leverage the strong and existing Ethereum-based developer community and attract new developers by making Algorand easier to build.”It’s technology, “Warden says when asked about Algorand’s appeal to the underlying blockchain layer of competing developer talent.We just have the best technology.Algorand claims to be able to execute up to 10,000 transactions per second at a fraction of a cent per transaction.The cheap and fast Tier 1 saw a huge influx of interest last year as Ethereum users complained about high transaction fees.Warden tells CoinDesk that Algorand has also pioneered “proof of status” technology, a feature that will allow developers to take a snapshot of the blockchain in real time.Snapshots or “proof of status” will serve as a source of facts, allowing transactions to be completed through smart contracts rather than consensus Bridges.”In the medium term, our goal is to be the first tier that can achieve financial inclusion, “Warden says.We believe in a multi-chain world, but if there is only one settlement chain, it must be Algorand.Algorand is one of the top 30 blockchains with a market capitalization of nearly $6 billion, according to Messari.