Jump Crypto-backed cross-chain bridge Wormhole has introduced support for the Algorand blockchain.
The Algorand partnership marks Wormhole's tenth integration with a Layer 1 blockchain as developers focus on interoperability solutions. Popular basic blockchains such as Ethereum, Avalanche and Solana cannot easily communicate with each other, meaning assets held on one blockchain are difficult to transfer to and post on another blockchain.
When tokens are bridged through Wormhole's Portal Bridge, the original token is locked in a smart contract while a new portal-enveloped version of that token is minted on the target chain. Then, the wrapped tokens can be traded for tokens on the target chain and used for decentralized funding.
"Wormhole has quickly become one of the largest DeFi networks in the world," Hendrik Hofstadt, director of the Wormhole Foundation, said in a statement. "The network plays a key role in allowing liquidity to flow into new ecosystems, which has a profound impact on the growth and spread of decentralized protocols, projects, liquidity, governance and participation."
However, Bridges have been vulnerable to hacks in the past. Critics say they don't offer nearly as much security as the standalone blockchains they connect.
Wormhole's Solana Ethereum bridge was hacked in February for more than $320 million, prompting Wormhole supporter and crypto market maker Jump Crypto to secure the nine-figure sum.
"The integration of Algorand into the Wormhole network is great news for the builders of this ecosystem," said Michel Dahdah of Rand Labs, an Algorand developer who worked with Wormhole on the integration. "It will allow us to access all the liquidity that exists outside of Algorand, which will greatly increase the TVL of the network."
According to its website, Wormhole currently has integrations with blockchains Avalanche, Terra and Polygon, among others, and has completed more than $760 million in total value.
Algorand's entire TVL is currently valued at $136 million, according to DefiLlama.