ALGO News: Flare Network To Build Bridge Between Algorand and Bitcoin

April 28, 2022 4:19 pm

The Flare Network is a EVM-compatible layer 1 protocol that recently received a grant from the Algorand Foundation to build a new bridge to connect the Algorand ecosystem with Bitcoin.

The purpose of building the bridge is that it will allow Algorand to continue to expand its ecosystem and accelerate the mainstream adoption of decentralized finance.

What the bridge does specifically is that it allows for interoperability between the native token ALGO and Bitcoin which will have huge upside benefits for the blockchain.

Additionally, it also improves the existing interoperability that Algorand has with other tokens such as DOGE, XRP, and XLM which all have their own massive ecosystems.

As a result, the benefits are mutually beneficial as each blockchain will be able to reap the benefits of other blockchains while continuing to specialize in their own specific use cases that they do best.

CryptoPotato reports:

Speaking on the new partnership, Daniel Oon, Head of DeFi at Algorand Foundation, said,

“We’re excited to partner with Flare and welcome them to the Algorand ecosystem.

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.”
Flare is a new L1 protocol designed to facilitate cross-chain interoperability without compromising security.

It promises to “connect everything” in the blockchain world.

Flare will develop the bridge using its innovative interoperability protocols – the Flare Time Series Oracle (FTSO) and the State Connector.

Sean Rowan, the CTO of Flare, stated that the team had always been looking forward to building a trustless bridge with Algorand for a long time.

There are many technical challenges when it comes to building an effective bridge for a blockchain and Flare’s approach is to build from the ground up so that the bridge works as expected.

As a result, Flare expects to see the crypto industry start to evolve with more and more decentralized interoperability between major blockchains.

Algorand, being one of the biggest players in the DeFi world, was naturally was selected as one of the first to work with Flare in order to pursue this vision.

The grant that Algorand provided grant as a sizable amount of capital as it was a seven-figure grant.

The news could serve as a major catalyst for an upcoming rally as the price of ALGO currently rests on strong support and is primed for a bullish move.

FXStreet reports:

Since Bitcoin price is recovering, a minor rally might be on the cards. Therefore, altcoins, including Algorand price, could also see a spillover effect.

If ALGO recovers above the $0.687 barrier, it will signal the start of a new uptrend.

In such a scenario, investors can expect Algorand price to catalyze a bullish move to the $0.841 hurdle.

This move would constitute a 20% rally from the current position at $0.669 and is the conservative outlook.

If the buying pressure continues to increase from new investors, there is a good chance ALGO will extend the rally to the $0.90 barrier, bringing the total gain to 33%.

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