What Is Flare Network and What Does It Do?

What Is Flare Network and What Does It Do?

Back in 2009, When Bitcoin came out as a decentralized electronic cash system, it was a new asset class that people could use to store their money.

Executing transactions with no third-party engagement or centralized control is the essential innovation of Bitcoin.

But nowadays, Smart contracts and decentralized applications open a wide range of possibilities and opportunities on the blockchain.

Pejman Zwin

Content

Smart contracts and decentralized applications (Dapps) introduced by Nick Zabo, Vitalik Buterin, and a few more computer science fellows created a whole new economy and incentives for blockchain technology.

Thanks to its utilities, they helped the crypto market hit a 2 trillion market cap.

Decentralized applications help other industries enter the crypto space with the aid of NFTs and smart contracts.

There are more than ten thousand blockchains and cryptocurrencies in the market.

But only a small number of them are being used in smart contracts.

Most cryptocurrencies and blockchains are not practical because they are not accessible in smart contracts and decentralized applications.

Therefore, many cryptocurrencies stay out of the emerging blockchain utilities, and they die.

What’s the solution?

Flare is a new blockchain that aims to bring smart contracts and decentralized applications to other blockchains and cryptocurrencies.

Therefore, every cryptocurrency can use the Flare protocol to create decentralized applications and a set of smart contracts for different purposes.

With its brand new protocol and unique features, Flare creates new opportunities for every blockchain and cryptocurrency to make themself more useful and engaging.

Now let’s learn more about Flare.

What is Flare?

What is Flare?

Flare introduces itself as a decentralized smart contract network and protocol that uses a Byzantine Consensus to secure its network.

It is a utility token for the XRP Ledger, but it is a bit more than that.

Flare’s main objective is to make cryptocurrencies accessible to smart contracts.

Flare introduces itself

Imagine a community token that has reached a massive market cap and now wants to unlock more potential for its community.

The community token can use the Flare protocol to create decentralized apps, NFT-based games, and more to engage customers and grow its economy and community.

Blockchain tokens can create their set of smart contracts and Dapps on top of Flare.

They can make sure their Dapps are secure on the Flare network, and they can even mint their native tokens and turn them into a Flare-powered token.

Minting a token into a Flare token makes them an F-Asset, and it is a kind of wrapped token for smart contract use cases.

Flare is a side network for Ripple as it is trying to make a bridge between the Flare network and the XRP Ledger using FXRP, which is an F-Asset token.

FXRP is the first F-Asset that causes the integration with Flare smart contracts.

It makes XRP one step closer to the Central Bank digital currency.

The Ripple Foundation has intended to work with banks since the early days.

As we mentioned earlier, Minting a token into a Flare token makes them an F-Asset.

F-Assets can access Flare’s smart contracts and utilities.

It is like swapping an off-chain token with an integrated token on Flare’s protocol or wrapping cryptocurrencies with F-Assets for Flare’s smart contract use cases.

So Flare is a smart contract platform running FBA consensus that adapts Avalanche consensus protocol with FBA.

Avalanche is a DAG-optimized proof of stake protocol, and Flare has adapted FBA with Avalanche protocol to create a fast and secure smart contract network.

It creates a scalable platform for smart contracts, which is useable for many purposes, like creating decentralized apps.

Keep reading; the exciting part is yet to come!

Flare's network properties

What are Flare’s network properties?

The Flare network does have multiple properties, which are listed here:

  • EVM-like virtual machine
  • Federated Byzantine Agreement algorithm
  • Low fees
  • Ripple integration
  • no economic incentives for security
  • F-Assets in favor of other cryptocurrencies
  • Flare Time Series Oracle (FTSO) provides price feeds.
  • Flare Finance (EXFI) for DeFi purposes currently includes FlareX, FlareFarm, and FlareLoans.
Further reading

What is Federated Byzantine Agreement (FBA)?

What is Federated Byzantine Agreement (FBA)?

FBA is derived from the popular Byzantine Fault Tolerance (BFT).

BFT is a famous computer science problem that first I want to explain to you before talking about FBA.

Federated Byzantine Agreement

Imagine several army generals deciding to attack a city.

These generals divide into four groups and surround the city in four directions.

Now, if a general chooses to send a message to other generals, how can he ensure that the sender doesn’t get caught?

How does he make sure that the other generals get the message and that they will act as planned?

Byzantine Fault Tolerance has solved this fascinating computer science problem.

There are three types of Byzantine consensus.

The first type is Practical Byzantine Fault Tolerance (PBFT), the second type is Delegated Byzantine Fault Tolerance (DBFT), and the third type is Federated Byzantine Agreement (FBA).

Practical Byzantine Fault Tolerance (PBFT) is a centralized solution in which a leader node and the other nodes should send every data to the leader and share it with other nodes.

And finally, the leader node will decide whether the transaction and data are valid or not and then validate it if yes.

Delegated Byzantine Fault Tolerance, also known as DBFT, is an upgraded version of PBFT.

It includes a certain number of delegated nodes that propose the transaction data.

Other nodes vote for these delegators or, better say, network agents.

The delegator that gets the most votes wins the transaction.

But the most decentralized BFT consensus mechanism is the Federated Byzantine Agreement (FBA) used by the Flare network.

FBA is a decentralized, fully transparent consensus mechanism in which everyone can participate without any prior verification.

There are many nodes within the system, and nodes can choose which nodes they trust and create a quorum.

A Quorum consists of a group of nodes that work on verifying transactions.

After auditing a set of transactions by a quorum, a subset of the quorum called a quorum slice shares the data with other nodes and quorums to validate the transaction and agree on them.

Nodes can join several quorum slices and validate transactions on any of them.

A better scenario is that nodes are on several quorums.

It makes quorums intersect with each other and make up a better trust ecosystem and an overall Agreement and easier consensus.

The Point is if nodes aren’t in many quorums, that may create independent groups of nodes, and it may cause a paradox in validations.

Some quorums disagree on some transactions with other quorums and cause a consensus collapse.

One of the FBA consensus’s features is that the overall consensus is highly reliable and strongly tolerant.

The network will operate correctly even if some nodes fail to work.

That’s one of the core features that Byzantine consensus mechanisms inherit.

It makes the network highly secure and reliable even if it goes under attack due to its strong tolerance.

Therefore, the consensus doesn’t rely on a few specific nodes to operate and can still work correctly if some nodes don’t respond.

All the nodes don’t need to be a part of the agreement for each transaction, and a set of quorums can validate transactions.

Be careful with that because online fraud is growing.

We will read about one of the most exciting things about flare’s network for the next topic.

Further reading

Flare Time Series Oracle (FTSO)

Flare Time Series Oracle (FTSO)

Flare’s network fundamentally bases its primary goal on creating a secure smart contract platform for other cryptocurrencies.

Therefore, Flare has created the F-Asset protocol, enabling other tokens to integrate with Flare’s network and use its smart contract protocol and Flare’s EVM-like machine to develop decentralized apps.

Flare Time Series Oracle

Any blockchain token turning into an F-Asset should still keep its value.

So there should be a protocol to constantly sync the off-chain data with the network to make sure that the prices are equal to their variant blockchain token.

For example, when XRP, Ripple’s native token, turns into an F-Asset via a smart contract and becomes FXRP, it must maintain its off-chain value.

Therefore, the protocol has created FTSO to track real-time off-chain data for the network to keep price feeds.

It is the abbreviation of Flare Time Series Oracle.

FTSO uses F-Asset holders and Spark holders to keep a real-time pricing mechanism.

So F-Asset holders and Spark holders provide real-time off-chain data for the network as nodes.

And they are given Spark tokens as a reward.

It creates a mechanism to keep real-time data on F-Assets value decentralized without any need for centralized exchange data.

Flare’s primary goal is to be decentralized and stay decentralized.

The more the number of F-Asset holders and Spark (FLR) holders increases, the protocol generates more Flare tokens for the FTSO and data providers, consequently creating an inflationary tokenomics for Flare’s network.

Therefore, the circulating supply of the Flare’s native token (Spark) depends on the number of Spark and F-Asset holders and FTSO data providers.

In addition to this inflationary tokenomics, the FTSO mechanism will not reward inactive holders and only reward data providers.

Hence, data providers will earn more FLR tokens than inactive holders as the inflation rate increases.

It makes an incentive for the holders to contribute to the wholeness of the network and earn Spark.

Finally, you can read all about Spark in the next part.

Further reading

Flare's native token, the Spark

Flare's native token, the Spark

Spark is Flare’s native token.

The unique thing about Spark that distinguishes it from other native tokens is that Spark is not attached to the network’s security.

As you know, almost every native blockchain token is mined or farmed for security maintenance.

Native token

Native token’s value is the main incentive behind validators working for the network.

But in many blockchains, as the value of the native token decreases, validators or miners lose their motivation to participate in the consensus mechanism because economic incentives mainly push them.

Flare has cleverly changed this reward mechanism, so the network’s security doesn’t rely on its token value.

Making Spark a non-incentive token causes a flexible playground for Spark.

There are three primary purposes for Spark:

  1. They are given as collateral for the network nodes and quorums, as they should lock 2.5x Spark of the F-Asset’s value.
  2. As a contributor to the oracles for the FTSO real-time price feeding.
  3. As a governance token for the network and everything that relies on that, such as decentralized applications.
Further reading

What is Flare Finance (EXFI)?

What is Flare Finance (EXFI)?

Flare Finance is a DeFi protocol with liquidity pools for decentralized finance and automated market-making protocols built on the Flare network.

Flare Finance is a decentralized autonomous organization (DAO) that has created well-suited DeFi solutions that inherits KYC and anti-money laundering features.

EXFI

Flare Finance currently has three main products:

  • FlareX, a decentralized swap protocol and trading platform with leverage
  • FlareFarm, a yield farming platform, and a token launchpad (IDO)
  • FlareLoans, lending and borrowing liquidity pool with LP reward

Should I buy Spark (FLR)?

Although Spark is not on the market yet, here is a brief summary of it for the future.

The road map of Flare blockchain and Spark is impressive, and they are bringing new technology into the market that few have offered before.

Another good news is that the team is not launching the token until the whole project is complete, unlike many meme coins.

You can also earn other cryptocurrencies while you invest in Spark.

What could be more attractive than this?

Wallets will be supporting Spark

What wallets will be supporting Spark (FLR)?

There will be eight wallets that will support Spark (FLR):

  • Ellipal
  • Gatehub
  • Bifrost wallet
  • Copper.co
  • Metamask
  • Ledger
  • D’CENT wallet
  • Safepal.
Further reading

Any overall thoughts?

Any overall thoughts?

Smart contracts and decentralized applications (Dapps) have opened many opportunities for blockchains and cryptocurrencies.

Smart contracts

Flare network has created an EVM-like smart contract platform for blockchains and cryptocurrencies to build decentralized applications and financial systems because smart contracts and Dapps are unavailable for many Blockchain tokens.

Flare is changing the game for these blockchain tokens to build their dapps and ecosystems on top of the Flare network.

Using features like Federated Byzantine Agreement (FBA) consensus mechanism and Flare token utilities, Flare contributes a lot to the blockchain industry, Especially the Ripple foundation, to make XRP one step closer to CBDC settlement.

Spark, Flare’s native token, is not distributed on the market, and it’s currently unavailable in crypto exchanges.

It is only available for FTSO data providers, and it’s not tradable.

However, EXFI, Flare Finance’s token, is available on many exchanges, and users can use Flare Finance products and trade EXFI.

Suppose the Flare token Spark hits the market and shares a circulating supply.

In that case, it could obtain high values due to Flare network utilities and impacts on the cryptocurrency industry.

Further reading
Frequently Asked Questions about Flare (FAQ)

Frequently Asked Questions about Flare (FAQ)

How much is Spark (FLR)?

As I mentioned before, the Flare team will launch the flare native token, Spark, soon. There will be no sign of it until 4th July 2022.

How to buy Spark (FLR)?

At the moment, you cannot buy Spark because the Flare team didn’t launch the token.

Who created Flare?

The co-founders of Flare are three people, Hugo Philion, Sean Rowan, and Dr. Nairi Usher.

Hugo Philion is the CEO of the company with a professional background. He got his bachelor of science degree at Cass Business School in investment and financial risk management. Mr. Philion also studied machine learning at UCL.

Sean Rowan is the CTO of the company. He is an ECE engineer and has a Master of Science degree in machine learning at UCL. He leads the research and development for the state connector and FCP.

Dr. Nairi Usher is the chief scientist of the team. She collaborated with Siemens on applications of quantum algorithms to healthcare and image recognition before joining the team. She has a master of science in physics and a Ph.D. in quantum computing.

Many experienced engineers and managers are on the team, but mentioning them all here is another whole essay. Be aware that a professional group is developing the Flare network.

Thanks for reading

Further reading