09.12.2021

Flare Networks Might Just Be What XRP Needs to Return to Glory

In other news, the Flare Networks is about to launch its decentralized exchange called FlareX. In a recent report from CNF, Flare Networks made it clear that they were making plans to launch a product called FlareX.

FlareX is a decentralized finance protocol that has already entered a testing phase. It is one of the projects that Flare Finance is working on. While Ripple and Flare Networks are confident about the upcoming exchange, other members of the cryptocurrency community have expressed concerns about the legitimacy of the project.

Flare Networks work on the XRP Ledger might just be what the token needs to return to glory. For many years, Ripple and the XRP token have been losing supporters steadily. Despite all the prospects the XRP token had in the beginning, its consistent decline in price has made people lose faith.

At the time of writing, the price of the XRP token was $0.256610. This means that it is up by 2.43% against the USD and down by 1.84% against Bitcoin BTC. The trading volume over a 24 hour period was $2,185,428,380 and the market capitalization was $11,589,107,616.

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.

  • Ripple’s Partnership with Flare Networks is Going on Smoothly
  • Flare Networks Has Proposed a Product for Issuing assets on the XRP Ledger
  • FlareX, a Decentralized Exchange by Flare Networks 

Flare Networks has become one of Ripple’s best partners. The company’s work on making the XRP Ledger smart contract compatible is second to none. Yesterday, the company’s CEO published an article with a proposal for a product that will allow people to issue assets on the XRP Ledger.

The title for the publication was “Closing the circle on XRP <> Flare Interoperability”. According to Philion, the mechanism will be trustless and decentralized. Philion believes that this mechanism is important because only a few assets on the XRP Ledger are currently trustless. These assets are called Issued Currencies (IOUs).

Ripple News Today – Ripple’s XRP Needs All the Boost it Can Get

Philion said that the IOUs are dependent on the users and issuers trust on each other not to go back on the plans. He said that this mechanism will solve this problem but still use the XRP token and the XRP Ledger directly by introducing DeFi on the XRP Ledger. Their goal is to eliminate centralized parties that are usually involved in the issuance of tokens on the XRP Ledger. Part of the publication was as follows;

“The objective is then to issue an IC on the XRP Ledger representing USF such that there is no reliance on a centralized third party when trading and redeeming back to Flare. IE A trustless issuance and redemption of USF IC’s on XRP Ledger. Let’s call this IC, USFX. Flare’s state connector will observe the actions taken by (the entity’s) issuing account and if all the steps above are completed correctly the smart contract system on Flare will add (the entity’s) XRPL issuing address to the list of valid addresses.”

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