A solution to bridge XRP with the Ethereum blockchain had been proposed by Flare Networks, the entity that integrates the Ethereum Virtual Machine (EVM) to provide advanced smart contracts on the XRP blockchain. According to an announcement released on August 26th, the company wants to develop a two-way bridge to bring the second and third-largest cryptocurrency in the world together.
Positive feedback from Ripple’s CEO
For the past several months, the attention had been focused on Bitcoin and Ether, considering these two tokens had a pretty impressive price performance. However, despite underperforming, Ripple (XRP) is still determined to spread the token to a wider audience. Brad Garlinghouse, the current Ripple CEO, spoke above the Flare’s intentions and highlighted the importance of combining two of the largest blockchain networks:
From my point of view Flare is combining the best of XRP ( 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.
Collaborating with Ripple since November 2019, Flare Networks is not the first company to propose a link to the ETH network. Rainbow Bridge from NEAR project is just one of the solutions that lead to the same result. However, in the case of Flare we’re talking about bringing together two large-cap tokens and implications are endless.
The proposed XRP-ETH bridge will allow XRP on the Flare Network (known as FXRP), according to Cointelegraph, enabling the usage of XRP on the Ethereum blockchain and will act as a scaling platform for ETH and other applications operating on the blockchain.
Ripple Foundation will have the final say
It is important to note that this is just a proposal so far and the final decision will come from the Ripple Foundation. Considering the collaboration with Flare had been founded by Ripple’s Development arm Xpring, there should no major roadblocks in implementing the bridge. As always, though, there are some critics that say such a move will slow down the Flare network.
The Ether network had been facing network congestions and the crypto community is now eagerly awaiting the Ethereum 2.0 implementation to solve this issue. Asian nations are accelerating blockchain adoption, but the Western World does not fall behind. As a US-based company, Ripple had been very active during the past several years in promoting its cryptocurrency for cross-border transactions and other applications.
Having XRP and ETH bridged can unlock massive upside potential since it will bring together two of the biggest cryptocurrencies in the world. Could this create a better platform for future cryptocurrency adoption? Only time will tell, but for now, things look very encouraging for both tokens.