Flare Networks has proposed the introduction of a trustless two-way bridge between XRP and Ethereum

By Selena On Aug 26, 2020

There are a lot of questions surrounding how to use XRP and Ethereum together. And the solution here is to find a reliable bridge. Currently, the Flare Networks project has proposed the introduction of a trustless two-way bridge between XRP and Ethereum.

2/ This would allow FXRP to be used trustlessly on Ethereum as well as providing a scaling platform for Ethereum tokens and applications whilst giving access to the XRP market for existing Ethereum applications. This could bring together the #XRP and #Ethereum ecosystems.

— Flare (@FlareNetworks) August 25, 2020

A trustless bridge between Ripple and Ethereum will help XRP users access ETH applications

Flare Networks is a project that has partnered with Ripple’s Xpring in 2019 to introduce smart contracts for XRP Ledger. And they have also proposed such an idea. This new project is now aiming to combine the best of XRP and ethereum, allowing XRP users to access ethereum applications while providing a scaling platform for Ethereum.

Flare’s official announcement states that:

“This will be the first governance proposal that the foundation will be required to vote for.”

If the proposal goes through, the XRP on Flare Networks, known as FXRP, will also be used on the Ethereum ecosystem. Besides, FXRP will also provide a scaling platform for the decentralized applications and tokens on Ethereum. Notably, Ethereum is still battling scalability issues as users wait for the long-awaited ETH 2.0 upgrade to arrive.

Meanwhile, XRP users will be able to access existing ethereum applications as XRP expands its use cases.

Ripple director Brad Garlinghouse recently talked about the importance of the bridge between Ripple and Ethereum that Flare is working on:

“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.”

Flare Network’s proposed bridge would combine two different systems. Ethereum is a blockchain platform that has become home to the rapidly growing decentralized Finance (DeFi) sector. In contrast, XRP is a cryptocurrency used by banks and other financial institutions to send money almost instantly and at a low cost around the world. To that end, Flare hopes to bring these two ecosystems together.

While this initiative is quite essential, it is certainly not the first time that Ripple has pursued interoperability with Ethereum. Earlier this year, Xpring announced its support for joining forces with the ethereum ecosystem. In particular, Xpring urges developers to build bridges between XRP, ETH, and ERC-20 tokens.

It remains to be seen whether a bridge connecting Ripple to Ethereum will eventually be built.

Brad Garlinghouse: Macro view for crypto bullish amid massive monetary stimulus

In an interview during the Parallel Virtual Event Series, Brad Garlinghouse said massive monetary stimulus programs will eventually damage the value of fiat currency.

He stated:

“I think that the macro view on crypto in a world where we’re seeing massive stimulus of fiat currencies, that’s very inflationary over a longer arc of time and I think that’s probably very good for crypto.”

Garlinghouse said he believes crypto assets will have to prove their utility in order to survive in the long run:

“I also think this isn’t just about crypto as a speculative asset. It’s about crypto using these technologies to solve real problems.”

Garlinghouse also cites how blockchain and cryptocurrency can become more useful tools.

“We have to make sure there’s regulatory clarity, we need to make sure we’re focused on real use cases, not science experiments, but actually solving real problems… It’s important that the various projects, regardless of what technology platform is being used, need to be clear on who their customers are and what problems they are solving.”

XRP acts as a bridge currency to facilitate cross-border payments and the company owns more than half of the total supply of 100 billion tokens.

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