- Flare received the grant from the Algorand Foundation SupaGrant.
- The bridge will offer greater security through consensus and risk mitigation.
- Flare will also add Bitcoin as a FAsset, which can be leveraged to build dapps on Flare.
As the fear of DeFi hacks and exploits continues to grow, investors and developers alike are finding ways of being wary of protecting their assets and projects.
And building on the same DeFi chain Algorand has tapped just the right network to make that happen.
Algorand Gets a Touch of Flare
In a press release, the interoperability-focused Flare network announced that it had been awarded a 7-figure Algorand Foundation SupaGrant to develop a Bitcoin bridge into the Algorand ecosystem.
The reason behind this bridge is the constant threat that looms over the DeFi chains of being hacked. As it is just this year, two major crypto hacks left the investors with billions of dollars of their money stolen.
Earlier last month, Axie Infinifty’s Ronin bridge lost over $625 million, which became the biggest hack in the history of cryptocurrencies.
Thus, to avoid that, Flare is focusing on making sure that the new bridge is much more secure and that it will enable secure, trustless interoperability between ALGO and BTC, plus other non-smart contract tokens such as DOGE, LTC, XRP, and XLM.
Flare will achieve this by using the network’s Flare Time Series Oracle and the State Connector.
Commenting on this bridge, the Head of DeFi, Algorand Foundation, Daniel Oon, said,
“Our grant partnership with Flare will develop key DeFi infrastructure with a bridge to Bitcoin, opening up opportunities for further collaboration and innovation. We look forward to our partnership bringing value to our respective communities.”
Not only this, but the Flare network also announced that they would be bringing Bitcoin as a FAsset onto Flare. This way, developers could use this token as a means of developing Dapps by leveraging their FBTC.
Algorand on the Chart
While the bridge might open up new roads for the chain, its primary function as an investment vehicle isn’t doing that well at the moment. After falling consistently throughout the months, ALGO is now trading at $0.66 at a 14-month low.
ALGO might need more than this to recover the losses it has endured throughout 2022