Algorand (ALGO) launches a $20M incentive program to boost Ethereum compatibility

Algorand (ALGO/USD) has released a $20 million fund to boost the growth of its ecosystem. Part of the funds will be used to boost the compatibility of the network with the Ethereum (ETH/USD) blockchain, while the rest will be used to boost the network’s robustness.

Algorand sets a $20M incentive

The CEO of the Algorand Foundation, Staci Warden, made this announcement at the ETHDenver conference. $10 million would be given as grants to developers of the foundation who can offer solutions to compatibility with the Ethereum Virtual Machine (EVM).

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With EVM compatibility, projects built on the Ethereum blockchain and other blockchains compatible with Ethereum can run on Algorand. This incentive will also lure more developers to work with Algorand. “We’re committed to a multichain world. We’re inspired by the depth of talent and activity in the Ethereum network,” said Warden.

The other $10 million will be directed towards boosting the robustness of the Algorand blockchain. This will be achieved through building developer tools, making it easy for developers to build their applications on Algorand. Some of the developer tools that could be created through this fund include compilers and debuggers.

The two funds are expected to bring more projects to Algorand. It will also enable Algorand to tap into the robustness of the Ethereum ecosystem. By making it easy for developers to create projects on Algorand, the network is expected to see growing adoption.

Algorand’s competitiveness in the blockchain space

Algorand can execute up to 10,000 transactions per second, and the transaction fees are generally low. Algorand emerged as a competitive blockchain as users started complaining about the high gas fees on Ethereum.

Warden has revealed that Algorand is working on a “state proof” technology to serve as a function of truth. The feature will allow transactions to be handled using smart contracts instead of a consensus bridge.

“In the medium term, our goal is to be the layer 1 that can enable financial inclusion. We believe in a multichain world, but if there’s only one settlement chain, it’ll be Algorand for sure,” Warden added. Algorand has grown significantly, and it is now among the top 30 blockchains by market cap.