Elrond has entered into a strategic collaboration with AllianceBlock to integrate the AllianceBlock protocol with Elrond to ensure compliant accessibility to DeFi products and Elrond assets. Elrond is renowned as the internet-scale network of blockchain technology designed to improve the execution speed and throughput by almost 1000x. Elrond employs the secure PoS algorithm and the innovative Adaptive State Sharding mechanism to ensure a secure and efficient consensus mechanism. The Sharding technique of Elrond Network ensures speedy transactions and supports the Internet of Things (IoT) ecosystem, decentralized finance (DeFi), and Fintech. The Elrond Network protocol is secure, fast, highly scalable, and ideal for supporting enterprise use cases and distributed applications in the internet economy. However, the Elrond Network is not compatible with the Ethereum Virtual Machine (EVM). The partnership with AllianceBlock will make Elrond acquire the EVM-compatible features of AllianceBlock.
Currently, AllianceBlock is working on the development of a multi-layered protocol, L2, to bridge the gap between decentralized and conventional finance. The protocol is designed to amplify the privacy, data governance, and KYC compliance of DeFi protocols.
Financial institutions will gain the power to leverage and use the assets at Elrond Network through the integration between Elrond Assets and AllianceBlock. The use of the Elrond Network will enable the unrestricted use of capital through the regulated offerings of digital assets, compliant peer-to-peer lending for institutional clients, authorized offerings of digital derivatives, and so on. Moreover, Elrond also seeks to deploy AllianceDEX at Elrond Network for the implementation of Liquidity Mining as a service and greater control over impermanent losses. The deployment of AllianceDEX will also increase the accessibility of instant liquidity and expand the reach of the Elrond Network projects to more markets.
The strategic collaboration between AllianceBlock and Elrond Assets shall enable AllianceBlock to remake the solidity contract and deploy the platform’s decentralized exchange forum at Elrond. The integration will enable users to perform cross-chain swapping and allow them to have a greater degree of control over impermanent losses.
According to the partnership agreement, the Data Tunnel of AllianceBlock shall become a prominent part of the Elrond Network. The Data Tunnel shall provide the facility of monetizing data, generating value, unlocking new streams of income, and controlling the use of confidential data to the users of Elrond Network. Rachid Ajaja, the founder and CEO of AllianceBlock, is pleased with the partnership and looks forward to working on the ecosystem of Elrond Network to make it more convenient for instant liquidity providers to gain access to a variety of markets.