The Flare Network pursues an initiative to unlock the multi-billion dollars lying untapped in digital assets like XRP amid their lack of smart contract support.
In a recent tweet, Flare Network disclosed that the FAssets system, which is set to bring smart contract functionality to non-smart contract crypto projects like XRP, has the potential to unleash the value of $800 billion in crypto assets.
FAssets can unlock the value of $800B crypto assets – and the private Beta is now live on Flare's Coston testnet.
The system enables trustless use of tokens like BTC, XRP & DOGE on Flare, earning yields in DeFi and bridging to other chains via LayerCake.https://t.co/tvU60XPSHp pic.twitter.com/As7EIO0XOc
— Flare ☀️ (@FlareNetworks) December 5, 2023
XRP Becoming Usable in DApps Activities under FAssets
In the video accompanying the tweet, the Flare Network team highlighted that the total value of public blockchain assets has reached a staggering trillion dollars.
However, it argued that more than 70% of the value comprises tokens from blockchains incapable of supporting smart contracts. Meanwhile, smart contract functionality is crucial for decentralized applications (DApps).
In tackling the highlighted limitation, Flare Labs presents the “FAssets system.” Emphatically, the FAssets system enables non-smart contract tokens like XRP, Bitcoin, and Dogecoin to become usable in DApps.
Specifically, these non-smart contract tokens will be minted as FAssets on the Flare Network. Doing so allows users to participate in decentralized finance (DeFi), earning yields and unlocking a plethora of untapped value.
At the moment, the private Beta of FAssets is currently active on Flare’s Coston testnet.
FAssets Working Principle
Notably, the FAssets system is not confined to the Flare Network alone. The minted tokens can be bridged to other networks using LayerCake.
In contrast to other wrapped asset systems for non-smart contract tokens, the Flare team underscored that FAssets stands out as trustless. It implies users are not exposed to the risk of relying on a centralized intermediary when engaging their tokens in smart contracts.
Also, the team mentioned that the system relies on Flare’s native data acquisition protocols to achieve its independence from third parties. It involves leveraging the Flare Time Series Oracle for decentralized price feeds and the Stake Connector for trustless verification of transactions on the underlying chain.
Notably, backing FAssets are three asset types: the underlying asset, Flare native token collateral, and either stablecoin or wrapped Ethereum collateral. Furthermore, the team noted that independent agents facilitate the minting and redeeming processes.
It is worth mentioning that FAssets are minted as ERC20 tokens on the Flare Network, ready for use within DeFi or bridged to other chains.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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