AllianceBlock, a blockchain technology company seeking to bridge the gap between decentralized finance, or DeFi, and traditional finance, has announced a partnership with fellow blockchain technology entity Flare.
Flare claims that the first layer, or optimization of the blockchain protocol, technology can bring smart contracts to cryptocurrencies such as XRP (XRP), Dogecoin (DOGE), Bitcoin (BTC), Algorand and Stellar Lumens (XLM). In addition, Flare is also a decentralized oracle network, which seeks to enable the blockchain to access real-world data in the implementation of smart contracts.
Meanwhile, AllianceBlock brings to the table the AllianceBridge multi-chain interoperability solution, the original decentralized exchange, or DEX, better known as AllianceBlock DEX, the AllianceBlock Fundrs peer-to-peer decentralized financing protocol, and its compliance and regulatory solution. Together, the two parties seek to leverage their blockchains for DeFi capabilities with each other’s technologies.
When asked about DeFi services and regulatory compliance, Rashid Ajaja, co-founder and CEO of AllianceBlock, told Cointelegraph:
“With increasing interest from traditional DeFi finance, the regulation and compliance layer of AllianceBlock will allow traditional institutions to access opportunities in DeFi in a variety of ways, such as creating compliant and tradable certificates from liquidity mining tokens, yield farming or NFTs.
Ajaja further explained that the company’s regulatory and compliance products automatically check non-compliant transactions before each trade. In addition, they can add such rules to smart contracts that run on decentralized applications, or dApps, to ensure that cryptocurrency exchanges and financial institutions remain on top of the latest regulations.
Hugo Philion, co-founder and CEO of Flare, said the following regarding the network’s capabilities:
The Flare ecosystem is created to “unlock the value” inherent in the 65% of blockchains without native smart contracts by introducing, for the first time, real, untrusted use of those tokens through scalable smart contracts.
He further explained about the company’s partnership with AllianceBlock:
“Communities previously blocked from the smart contract revolution are now actively contributing to the space. Now with this exciting partnership and integration by AllianceBlock at Songbird, the Flare ecosystem is helping to unlock value in traditional finance by giving it access to decentralized finance.”