What Is Flare Crypto? A Comprehensive Analysis

Flare stands as a layer 1 network with a primary focus on fostering blockchain interoperability, which refers to the seamless communication between two distinct blockchains.

It plays a pivotal role in extending smart contract capabilities to blockchain projects lacking such features, exemplified by its integration with the XRP Ledger.

The infrastructure of the Flare Network relies on two key protocols: the State Connector, designed to facilitate the utilization of external blockchain data, be it asset-specific or general information, within the Flare Network, and the Flare Time Series Oracle (FTSO), acting as a dependable source of off-chain data for the network.

Furthermore, Flare incorporates the Ethereum Virtual Machine (EVM) for its smart contract development, simplifying the process for Ethereum developers to create applications on the Flare platform.

The native token of Flare, FLR, serves multiple purposes within the network.

It functions as an incentive for fostering the adoption and decentralization of the FTSO, contributes to the overall security of the network, and plays a role in the governance mechanisms of the network.

What is Flare crypto
Flare is a layer 1 network prioritizing blockchain interoperability, bringing smart contract capabilities to projects like the XRP Ledger: Photo source (Crypto.news)

How was Flare Network developed?

Flare, founded by Hugo Philion (CEO), Sean Rowan (CTO), and Naïri Usher (Chief Scientist), has roots in UCL, with Philion in investment and financial risk management, Rowan and Philion in machine learning, and Usher earning a PhD in quantum computing.

The August 2020 whitepaper introduced Spark (now FLR) and outlined Flare’s mission to add smart contract capabilities, initially focusing on XRP Ledger.

Xpring, Ripple Labs’ investment arm, made a significant initial investment in 2019.

A 2021 funding round raised $11.3 million from various backers, including Digital Currency Group, Do Kwan, and Charlie Lee.

Flare’s December 2022 update (Flare v2.0) refined the project and officially renamed the token to FLR.

How does Flare Network work?

Flare Network, operating as a layer 1 blockchain with a Proof-of-Stake (PoS) consensus mechanism, employs the Ethereum Virtual Machine (EVM) for smart contracts and the hosting of decentralized applications (dapps).

To enhance blockchain interoperability, the platform relies on two key protocols: the State Connector and the Flare Time Series Oracle.

State Connector

Flare’s State Connector ensures blockchain interoperability by reliably replicating the state of connected blockchains on Flare using decentralized technology.

Flare uses two tools:

  1. Request-commit-reveal (RCR) protocol: Users can ask for information from another blockchain. Attestation providers verify it using a Merkle tree for proofs.
  2. Branching protocol: After RCR verification, it checks if over 50% of attestation providers agree. This decentralizes the data acquisition process.

This enables the transfer of data, such as transactions and asset information in specific crypto wallets, from other blockchains to Flare.

Developers can then utilize it in the network’s native dapps.

Flare Time Series Oracle (FTSO)

Working with blockchain data poses challenges as decentralization on-chain may be reliable, but off-chain data interaction can be a vulnerability.

Oracles address this issue by pulling information from external sources and providing it to the blockchain.

Flare employs its FTSO oracle, a group of data providers supplying on-chain information.

For example, a DeFi protocol on Flare may require the reliable fetching of BTC or XRP prices.

Data providers stake FLR tokens, subject to slashing for malicious behavior.

Users can delegate FLR to trusted data providers, with both parties earning rewards based on data accuracy.

This incentivizes honest estimates for the most accurate data possible.

Songbird network

Songbird is Flare’s canary (or test) network.

Borrowed from Polkadot’s canary network, Kusama, Songbird works as a fully functional blockchain and exists to develop new features for Flare.

Launched in 2021, Songbird has its own governance system and its own native token, SGB.

How is the FLR token used?

FLR incentivizes FTSO usage. It acts as collateral in third-party dapps.

FLR facilitates governance participation. It secures the network through staking.

FLR also covers transaction fees.

Read more: How to buy Amazon Crypto?

Token distribution

The community receives 58% of the total 100 billion FLR, including airdrops to users.

Approximately 19% goes to the development team, advisors, and backers, while companies/funds associated with Flare reserve 22.5%.

Flare Network essentials

  • Flare, a layer 1 blockchain focused on interoperability, relies on the State Connector and Flare Time Series Oracle (FTSO) protocols.
  • These enable accurate information about other chains to be integrated into the Flare Network.
  • The FLR token incentivizes FTSO use, secures the blockchain through staking, facilitates network governance, and serves as a medium of exchange.

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