Flare Network Review: Blockchain Using EVM With Breakthrough Potential
Flare, an EVM-based Layer 1 blockchain, aims to extend the utility of blockchains by providing decentralized access services to high-integrity data from other chains and Web2. Let’s take a closer look at what the Flare Network is, how it works, its key features, tokens, and mission via this Flare Network Review.
What is Flare Network?
The Flare Network is an interoperable Layer 1 proof-of-stake blockchain, using the Ethereum virtual machine (EVM). Flare (FLR) was created in 2020. Basically the EVM converts smart contracts into instructions that a computer can read. This allows the network to run Turing-complete smart contracts. Turing-completeness means that it can run almost any computational task, as long as there is enough memory to run it.
It can combine several powerful properties to create an ecosystem of decentralized applications. In a nutshell, Flare aims to bring smart contracts and interoperability to blockchains.
The Ripple blockchain powered by XRP is one of the main goals and inspirations of the Flare Network. Flare proposes to scale PoS blockchains without compromising their security. It does this by ensuring that the security of the network is not tied only to its native tokens, as is the case with most, if not all, PoS networks.
Who is behind Flare Networks?
Flare Network’s CEO and co-founder is Hugo Philion. Before creating Flare, he was the founder of the modular building system, Future Generations. His expertise is in investing and he holds a Bachelor of Science in Investment and Financial Risk Management from Cass Business School.
He later received a Master of Science in Machine Learning from UCL. He also has experience working as a commodity derivatives portfolio manager at two funds valued at over $1 billion.
Sean Rowan is the second co-founder and CTO of Flare. Sean has been active in the blockchain community since he and colleagues at UCLA and TCD developed safe communication protocols for automobiles that use blockchain-based public key infrastructure in 2015. Prior to that, he graduated from Trinity College Dublin with a combined BA in Mathematics and a BE in Electronic and Computer Engineering.
Then he continued on to University College London to acquire a Master of Science in Machine Learning, most likely where he first met Hugo Philion. Additionally, Sean worked as an R&D Engineer at RAIL in Dublin, Ireland, where he created backend networking software for robot medical assistants. In November 2019, TIME magazine’s cover showed the most recent iteration of this robot from RAIL.
How does Flare Network work?
The Flare Network acts as a Turing Complete Byzantine Agreement Network, using the Flare Consensus Protocol. Turing complete means that the Flare network can run Turing complete smart contracts, which can emulate any computer algorithm. This makes it easier for any developer or computer using any coding language to run smart contracts on the network.
Furthermore, Flare uses the Ethereum Virtual Machine to deploy this smart contract. EVM makes it easier for Ethereum developers to build applications on Flare.
To promote interoperability between different blockchains, the Flare network uses two protocols. The first is a State Connector and the second is an Oracle Time Series Outbreak (FTSO). State Connectors help collect external data from other blockchains. This data is processed on-chain to provide consensus on the state of any blockchain Flare connects to.
That way, the Flare Network can recreate whatever is happening on the blockchain it connects to. On the other hand, Flare Time Series Oracle (FTSO) enables decentralized time series data collection. They are collected over a consistent period of time across other blockchains. Data can include things like data metrics, asset prices, and more.
The Flare network can communicate and exchange data across multiple blockchains through both protocols. This promotes interoperability, especially in building and using applications across different networks.
Features of Flare Network
Ethereum Virtual Machine (EVM)
Software that aids in deploying and executing smart contracts on the Ethereum blockchain is known as the Ethereum Virtual Machine (EVM). Additionally, it offers a setting in which programmers may create decentralized apps (DApps) on the network. EVM performs a comparable function in Flare Network by hosting DApps and executing smart contracts. Because of this, Ethereum developers may profit from the network.
Flare State Connector Protocol
A smart contract called the Flare State Connector protocol enables the Flare Network to gather information from any linked blockchain. By utilizing separate attestation providers, it does this in a decentralized and safe manner. These service providers independently glean information from a relevant blockchain. When there is adequate agreement, The Flare Network releases this information.
Oracle Protocol Outbreak Time Series (FTSO)
Flare Time Series Oracle Protocol (FTSO) is another cross-chain data collection and authentication feature on the Flare Network. In contrast to Stateful Connection Protocol, FTSO collects time-specific data. FTSO uses independent data providers to ensure data collection is decentralized and secure. Time-specific data can come from places like cryptocurrency exchanges. It is then automatically weighted depending on the information provider’s voting power. The average is calculated to give an estimate that can be used on Flare after the data is weighted.
Songbird is Flare’s ‘Canary’ network. This is a test/test net with the exact same features and functionality as Flare. Here, independent developers and teams from Flare can perform real tests on the test network. They do this to see how their changes will affect the Flare network. This makes it easier and more secure to test and deploy the proposed changes without the risk of jeopardizing the main network.
FLR is the native token of Flare Network. Its basic use case is similar to other native tokens – to prevent spam attacks. If transactions were free, then spamming and clogging the network with useless transactions would also be free.
What is the FLR token used for?
FLR can be used for the following functions:
- As collateral in decentralized applications (DApps)
- To provide data to an on-chain oracle
- Participate in protocol governance
These three components aim to enable an ecosystem of Spark-based applications called Spark Dependent Applications (SDA). SDA may also allow for unreliable representation of tokens on other networks. Even networks that don’t support smart contracts.
There are 100 billion FLR tokens available for distribution among the network’s key stakeholders. 58% of tokens will go to Flare community through airdrops. Then, 19% is allocated to the development team, advocates and advisors. Finally, Flare spends 22.5% of its tokens on investment and product development.
The first token distribution event was scheduled for 2020. Due to the aforementioned Ripple lawsuit, the first airdrop instead happened during a token distribution event on May 9th. 1, 2023. Eligible XRP holders received 4.28 billion FLR through centralized exchanges like Binance, Kraken, Kucoin, and OKX.
The 4.28 billion FLR airdrop represents 15% of the tokens allocated to the community. The remaining 85% of tokens will be distributed depending on the votes of current holders who are expected to wrap their FLR tokens.
Pros and Cons
The first advantage of the Flare network is its ability to make blockchains interoperable. This is an advantage for blockchain developers and users when trading; Flare’s technology allows the transfer of information between multiple blockchains.
Second, Flare networks help PoS blockchains grow without jeopardizing their security. Flare supports this by allowing smart contract platforms to scale without just linking the security of the network to their native token. The network also provides an environment to build DApps without worrying about code incompatibilities due to Turing completion. Finally, by integrating the Ethereum Virtual Machine, Flare continues to act to scale the smart contract network.
Although there are many advantages, there are still some disadvantages to the network. The main and biggest limitation is Flare’s dependence on the Ripple network. The network delayed its launch and broadcast for two years due to Ripple’s lawsuit. The network will be at a disadvantage in the long run if it continues to be profoundly affected by the functions of a blockchain.
Conclusion – Flare Network Review
Overall, Flare Network is a layer 1 blockchain ecosystem and decentralized oracle network. The protocol incorporates a unique stack and token generation system built to enable programmability and cross-chain communication. The goal of the project is to enable HODLer to unlock liquidity and expand DeFi adoption.
There are many benefits obtained by Flare users. Firstly, the network improves interoperability across the entire market which improves liquidity. Users can gain access to DeFi features with deep liquidity pool by using Flare. This structure also supports scalable EVM-based smart contracts, which makes it an ideal solution for Ethereum developers looking for lower fees.
Another thing to remember is that Flare started with Ripple, but it could theoretically add smart contract functionality and interoperability to any blockchain. Considering that three-quarters of the value in public blockchain tokens cannot be used with smart contracts in a trustless manner, Flare currently has a huge potential growth curve ahead.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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