Key highlights:
- Algorand Foundation is awarding a SupaGrant to Flare
- Flare will be using their technology to create a bridge enabling interoperability between Algorand and Bitcoin
- The bridge will also potentially enable interoperability between Algorand and other coins like Dogecoin, Litecoin, XRP and Stellar
Bridging Algorand and Bitcoin – Algorand Foundation awards SupaGrant to Flare
The Algorand Foundation has announced that it will be awarding a SupaGrant to blockchain project Flare, which will go towards building a bridge connecting Algorand with Bitcoin and select other cryptocurrencies that don’t have smart contracts capabilities. Coins such as Dogecoin, Litecoin, XRP and Stellar could also be supported by the bridge.
Algorand is a cryptocurrency that implements a highly efficient Proof-of-Stake consensus mechanism, making it suitable for a diverse set of applications including custom tokens, stablecoins, DeFi protocols, NFT marketplaces, and more. The platform has been operating since 2019, and has steadily been receiving upgrades expanding its functionality.
SupaGrants are an initiative created by the Algorand Foundation, providing experienced research and development teams with the funding required to create high-quality solutions for Algorand. Previous SupaGrants have focused on areas like Ethereum Virtual Machine (EVM) compatibility and blockchain oracles.
Flare, which has received a SupaGrant to work on bridging Algorand with other blockchains, will utilize their Flare Time Series Oracle (FTSO) and State Connector protocols to deliver trustless interoperability between Algorand and other layer 1 blockchains. FTSO makes it possible for the Flare network to receive decentralized price data, while the State Connector allows smart contracts on Flare to know about the state of both on-chain and off-chain systems.
According to a press release from the Algorand Foundation, there is a need for more secure blockchain bridges, since they are often much more vulnerable than the blockchains they’re supposed to connect. Indeed, bridging protocols have been the target of some of the biggest crypto heists to date – the Poly Network and Wormhole exploits, where hundreds of millions worth of crypto was stolen by hackers, immediately come to mind.
Sean Rowan, the chief technical officer and co-founder of Flare, commented on the team’s approach towards building a secure and trustless bridge for Algorand:
“We have a huge amount of respect for the Algorand team, and are excited to be developing a secure and trustless bridge for the Algorand ecosystem. The simple fact is that existing approaches to bridging have time and again been proven unsatisfactory. Flare’s new approach is an entirely different way, built from the ground up rather than being based on existing bridging technology – and will bring a breakthrough in secure, decentralized interoperability between any and all chains.”
