The two seek to improve their blockchains with each other's tech from cross-chain bridges to decentralized exchanges to oracle networks.
AllianceBlock, a blockchain tech firm that seeks to bridge the gap between decentralized finance, or DeFi, and traditional finance, announced a partnership with fellow blockchain tech entity Flare.
Flare claims its layer-one, or blockchain protocol improvement, 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 blockchains to access real-world data in smart contract execution.
Meanwhile, AllianceBlock brings to the table its cross-chain interoperability solution AllianceBridge, its native decentralized exchange, or DEX, known as AllianceBlock DEX, decentralized peer-to-peer funding protocol AllianceBlock Fundrs, and its Compliance and Regulatory solution. Together, the two parties seek to enhance their blockchains for DeFi capabilities with each other's technologies.
Asked about its DeFi and regulatory compliance services, Rachid Ajaja, co-founder and CEO of AllianceBlock, told Cointelegraph:
"With increased interest from traditional finance in DeFi, AllianceBlock’s Regulatory and Compliance layer will allow traditional institutions to access opportunities in DeFi in a variety of ways, such as creating compliant, tradeable certificate wraps out of liquidity mining tokens, yield farming, or NFTs.
Ajaja further explained that the firm's regulatory and compliance products automatically check for non-compliant transactions before each trade. In addition, they can add such rules to smart contracts running on decentralized applications, or dApps, to ensure crypto exchanges and financial institutions stay up to date on the latest regulations.
Hugo Philion, Flare’s co-founder and CEO, said the following in regards to the capabilities of the network:
The Flare ecosystem is being built to “Unlock the Value” inherent in the 65% of blockchains that do not have native smart contracts by bringing, for the first time, true trustless usage of those tokens with scalable smart contracts.
He further elaborated on the company's partnership with AllianceBlock:
"Communities that have previously been locked out of the smart contract revolution are now actively contributing to the space. Now with this exciting partnership and the integration by AllianceBlock onto Songbird, the Flare ecosystem gets to help unlock the value in Traditional Finance by enabling it to access Decentralized Finance."