Ripple Partner Flare Network Proposes to Bridge XRP and Ethereum Ecosystems
Flare Network, a Ripple-funded blockchain project, has floated the concept of incorporating a trustless two-way bridge with the Ethereum network. This interoperability is now believed to be one of the first governance proposals that the community has the chance to vote on.
Flare is Significant for XRP’s Utility
After about two years under work, Flare received an investment from Ripper’s Xpring subsidiary, in order to create a smart contract functionality to the XRP Ledger. Ex-Ripple CTO Stefan Thomas has later revealed that they originally planned to introduce smart contracts for XRP, but the idea was eventually shelved because of multiple obstacles.
The programming language for writing Ethereum smart contracts, Solidity, is Turing-complete, but Flare wants to bring this feature to non-Turing complete tokens by incorporating the Ethereum Virtual Machine.
If the bridge proposal is considered, XRPL will become a scaling platform for decentralized applications, providing users with a much higher transaction output. In the meantime, XRP will significantly increase the number of its use cases.
Flare’s importance for improving XRP’s utility was recently highlighted by Ripple CEO Brad Garlinghouse during the first crypto townhall:
“From my point of view, Flare is combining the best of XRP (very fast settlement), Ethereum (smart contracts), and Avalanche (for consensus) which helps extend XRP’s utility and allows developers to create smart contracts for new use cases like lending and DeFi.”
The blockchain has its own token known as Spark (FXRP) that portrays the XRP token on the Flare network.
“The FXRP system is a set of financial mechanisms encoded in smart contracts that enables XRP holders to create and redeem a 1:1 representation of the XRP token on the Flare Network, called FXRP,” the description of the token says.
The distribution of FXRP token started earlier this month, with XRP-friendly Bitrue becoming the first exchange platform to make it available.
In spite of its link with Ripple, Flare is not paired with XRP; other cryptocurrencies are anticipated to be available on the network soon.
Garlinghouse is both the CEO and Chairman of Ripple Labs. This year, Ripple surpassed 300 partners, including over 115 banks worldwide. Having launched On-Demand Liquidity (ODL) for cross-border payments, Ripple now has more than 20 partners using XRP for ODL, including Moneygram, Western Union, and American Express.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.