Cryptocurrency solutions developer Flare wins a grant from the Algorand Foundation to create a cross-chain bridge between the Bitcoin and Algorand networks
Cryptocurrency project Flare received a “seven-figure grant” under the SupaGrant from the Algorand Foundation to create a cross-chain bridge between the Bitcoin and Algorand ecosystems. The company announced this on its blog. The cross-chain bridge is said to be designed using the Flare protocols.
According to the announcement, the solution will use algorithmic consensus to drive the project so as not to rely on asset custody.
“Billions of dollars have been stolen from cross-chains in recent months because they are often more centralized and less secure than the blockchains they serve,” Flare said.
As a result of the development, users will be able to interact between the Bitcoin and Algorand networks without having to resell the cryptocurrency. Also in the future, the developers plan to add support for altcoins like DOGE, LTC, XRP and XLM.
Flare representatives emphasize that the solution will allow bitcoin owners to use cryptocurrency to work in the market of decentralized finance (DeFi), non-fungible tokens (NFT) and metaverses. However, the development timeline is not disclosed.
Earlier, Ethereum co-founder Vitalik Buterin spoke out against cross-chain applications. According to him, during a 51% attack, attackers can violate the integrity of the conversion of cryptocurrencies that are incompatible with each other. For example, by gaining control of the network, an attacker can cancel the conversion between tokenized assets (for example, SOL/WETH). In this case, he will have more cryptocurrencies in his hands, but in the cross-chain application itself, the provision no longer corresponds to the 1:1 model.
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