What Is Flare Network?

okx learn
OKX Learn
2023.01.24

One of the main goals of blockchain technology is achieving interoperability. This is essential for the advancement of Web3, but it also allows other blockchains to access new features. The Flare Network serves as a prime example, as it provides smart contract functionality to chains that lack it. This has the potential to revolutionize chains that were developed without this capability.

The Flare Network has its own blockchain, token, and various products and use cases. One notable use case is that of Ripple (XRP), where XRP holders can now access dApps and DeFi thanks to Flare. To fully grasp the capabilities of the Flare Network, it is important to understand its purpose and how it functions.

What Is Flare Network?

The Flare Network is an EVM-based Layer 1 blockchain that enables developers to build interoperable applications. Unlike traditional decentralized applications, the ones built on Flare can interact with other blockchains. Flare is capable of bringing new use cases and monetization models simply by offering decentralized access to high-integrity data.

The network was founded by Hugo Philion (CEO), Nairi Usher (Chief Scientist), and Sean Rowan (CTO). The original goal of the network was to add smart contract functionality to networks such as Ripple, which lack it, in order to increase their functionality. The network's token was originally known as Spark.

In 2019, the project received a significant investment from Ripple's investment arm, Xpring. In 2021, the project also completed a funding round, raising $11.3 million. In December 2022, the network officially renamed its token to FLARE (FLR).

According to Flare’s latest model, the network aims to advance cross-chain functionality. Previously, token bridging was limited to mostly centralized systems, which resembled the traditional banking model. Decentralized alternatives were less efficient and less secure. However, Flare aims to change this by providing true, decentralized interoperability.

How Does Flare Network Work?

Flare Network uses two interoperable protocols — the Flare Time Series Oracle (FTSO), and State Connector. The State Connector is used for consensus on data from external blockchains to be made on-chain, directly. As for the FTSO, it is a decentralized oracle that delivers off-chain data to the blockchain.

The combination of the two allows decentralized applications to use real-time information across the blockchains. Furthermore, the network also focuses on providing inputs for DeFi platforms. So far, standard decentralized systems struggled to obtain consensus. This is why Flare network and its functionality are highly anticipated in the blockchain industry. 

With interoperability being the key issue, Flare first had to integrate its network with the EVM. After that, it started using it to convert smart contracts written in higher language into something that computers could understand.

All of this allows the network to run the so-called Turing complete smart contracts. These are smart contracts that machines can execute on their own, with proper instructions.

Flare Network Features

The Flare Network offers several key features, including being the first Turing-complete FBA network in the world, compatibility with the EVM, low transaction costs, increased scalability, and the elimination of dependency on the native token.

One of the network's solutions is tokenization, which enables the functionality of smart contracts on other blockchains, such as XRP, Litecoin, Dogecoin, and Stellar. This allows for these coins to participate in DeFi protocols, the NFT sphere, and more.

Finally, there is also the network’s native token, Flare (FLR), formerly known as Spark. Thanks to Flare’s collaboration with Ripple, XRP holders can obtain FLR tokens for free. They can then use it for paying transaction fees, and in doing so, protect it from attacks. If transactions were free, the network would not have protection from spam attacks featuring worthless transactions. Other than that, the token is also acceptable as collateral in dApps.

Pros and Cons of Flare Network

Flare network has a number of positives, many of which were discussed above. However, it is worth remembering that it also has some negatives, which users should be aware of. 

Let’s start with the positives. It is rich with features, as explained above. Apart from that, it can bring smart contract functionalities to blockchains that cannot use smart contracts. It is fully decentralized, and as such, it boasts a predictable, trustworthy governance system. 

The project is also backed by multiple major and reputable crypto exchanges, including OKX. Reputable and reliable brokers such as eToro support it as well. And, finally, the project provides a lot of incentives to encourage users to become transaction validators. In fact, it aims to encourage users to take on an active role in any position within the network.

One potential downside of the project is its association with Ripple and XRP. XRP has been facing accusations of being an unregistered security for years. While such claims were mostly ignored, companies and partners started listening when the SEC made the same allegations. Ripple has been locked in a legal battle with the regulator for over two years now. Since the end is still not in sight, Ripple is uncertain and unreliable.

FLR Token

FLR is the native token of the Flare Network, and it is primarily used for payments, and transaction fees. However, it does have additional use cases, such as serving as collateral. Their ERC-20 variant, the Wrapped FLR (WFLR), further expands the list of use cases. For example, the FLR tokens in this form can be delegated to FTSO data providers. Alternatively, they are used for staking, governance, and alike.

If we are talking about the original FLR, it emerged with the genesis of Flare mainnet, on July 14, 2022. Then, only days ago, it saw its public token distribution event on January 9, 2023. At Genesis, the token’s total supply was 100 billion FLR. 12 billion entered circulation after the token distribution event. The plan is to continue to release monthly installments for 36 consecutive months.

The tokens were distributed thanks to the OKX exchange, which airdropped FLR to XRP holders on its platform. The tokens, airdropped only days ago, are also available for spot trading on OKX. Apart from OKX, Bybit, and Binance participated as well.

What Is Flare

What Is FLARE (FLR)?

FLARE (FLR), formerly known as SPARK, is the native cryptocurrency of the Flare Network. It comes as a new and unique form of programmable money, with two detachable votes. These are used to contribute through the governance process, and the Flare Time Series Oracle (FTSO). 

FLR token holders can consider themselves citizens of the Flare Network, which grants them the right to vote on various proposals or introduce new proposals for network improvements. Additionally, the token holders also have the ability to participate in a detachable vote for providing price data feeds using Flare oracles.

Oracles are technologies that collect off-chain data and bring it to the blockchain. From there, it is used by smart contracts for more accurate performance, as the data indicates when they should self-execute.

What Is FXRP?

On the other hand, there is FXRP — a trustless representation of XRP on the Flare Network. Due to the ties between the two projects, XRP holders can use smart contracts to create and redeem XRP tokens. This allows them to keep using XRP, and benefit from all the advantages that Flare Network has to offer.

For this system to work, it relies on participants who put FLARE tokens as collateral. They benefit from participation by earning fees when FXRP gets created and redeemed.

FLR Network Wallet

Those interested in becoming FLR holders should know that the token is supported by a number of wallets. Some examples include OKX Wallet, MetaMask, Ledger, Bifrost Wallet, SafePal, Rabby Wallet, Copper.co, ElliPal, and others.

The safest wallets, as always, are cold storage or hardware wallets such as Ledger. However, online wallets are far more convenient for quick transfers of money. 

Is Flare Network Worth it?

The Flare Network holds a lot of potential due to its innovative technology. Its ability to offer a full range of features while maintaining full decentralization is quite remarkable. Additionally, the network is still relatively new, so everything it has accomplished so far is just the beginning.

While its association with Ripple may be perceived as a liability by some, it's important to note that Ripple is still defending itself against the SEC. If it is successful in the case, the controversy may be quickly forgotten.

It's also worth noting that the Flare Network works with not only Ripple, but also many other projects. Its potential contribution to the development of Web3 could be significant, so the project should not be dismissed lightly.


FAQs

What Coins Are on the Flare Network?

Flare Network is currently the home of FLARE (FLR). This is its native cryptocurrency, formerly known as Spark. However, additional coins may launch on the network in the future.

Has the Flare Network Launched?

Yes, Flare Network has seen the launch of its mainnet in July 2022. Following that, the project also held its token distribution event. The tokens were airdropped to XRP holders.

Is Flare a Blockchain?

Flare is an EVM-based Layer 1 blockchain. It is fully decentralized, and it uses State Connector and FTSO protocols. Both are interoperability protocols where FTSO offers price and data feed, while State Connectors enables information.

Who Owns Flare Network?

Flare was founded by Hugo Phillion, Sean Rowan, and Nairi Usher. However, the network is decentralized, meaning that it has no owner, other than the community. 

How To Invest in Flare Network?

Investing in Flare Network means purchasing FLARE (FLR) tokens. The tokens are available on several exchanges, including OKX. XRP holders also get to receive them in airdrops.

Is Flare on Ethereum?

Flare integrates with the Ethereum Virtual Machine. However, it launched its own mainnet last year, in 2022. 

How To Buy 1 FLR Token?

The easiest way to buy FLR tokens is on exchanges like OKX, where it just got supported for spot trading. Previously, users had to use a more complex approach. However, that is no longer necessary.