Flare (COIN: $FLR) is the blockchain for data, providing developers with secure decentralized access to high-integrity intelligence from other chains and the internet.
The project launched on January 10, 2023, as a layer-1 proof-of-stake blockchain that uses the Ethereum Virtual Machine (EVM). Flare supports smart contracts and brings interoperability to the blockchain space.
Ripple (XRP) Integration
A major focus of Flare Network is to integrate smart contract capabilities into XRP. Flare’s main gripe with XRP is that, while Ripple is a powerful network designed to replace SWIFT, it is limited in its use cases. The smart contract capabilities of the Flare blockchain are designed to support XRP, as $FXRP tokens.
Flare has a protocol built on top of it that enables the trustless issuance, usage, and redemption of XRP tokens within the network. The $FXRP token allows XRP to integrate into the Flare Network, secured by the native $FLR token. In essence, holders of XRP can use smart contracts while enabling the creation of a trustless pipeline for XRP to other networks. The result will be interoperability between XRP and other blockchain networks.
This model can be extended to all Non-Turing complete tokens, and this has been included in the network’s governance systems. As such, any Non-Turing-Complete token could eventually access smart contracts and become interoperable with other blockchains via Flare.
How $FXRP Works
Holders of the $FLR token can send tokens to a smart contract that supports the $FXRP system, thereby providing collateral. The smart contract controls the conversion of XRP into $FXRP and the reverse. Each transaction has a 0.1% fee of the transaction value.
Scalability and Security
The project aims to create a scalable smart contract platform without compromising security. To achieve this, Flare Network has de-linked the native token from the network security. While there is a native token called $FLR, the token is not used to secure the network. Instead, it is used to prevent spamming.
Flare is a Turing-Complete, Federated Byzantine (FBA) network. It relies on the Avalanche consensus protocol for security. The benefit of the FBA network mode is that it can achieve high security without relying on an economic incentive.
Details of the $FLR Tokens
$FLR is Flare Network’s native cryptocurrency. The token launched with a total supply of 100 billion $FLR. These tokens are used to prevent spam attacks. If transactions were free, clogging would soon render the network unusable. $FLR tokens are also used as collateral in decentralized applications (dApps), to provide data to on-chain oracles, and for protocol governance.
The initial token distribution was scheduled for 2020. However, the first airdrop was postponed to January 20, 2023, due to the Ripple lawsuit. Eligible XRP holders received 4.28 billion $FLR via centralized exchanges. These tokens represented 15% of the community token allocation. The remaining 85% will be distributed based on a vote by the existing holders.
Token Performance
The $FLR price peaked on January 9, 2023, at $0.0797 per token. The price has since dropped to around $0.01368, representing an -82.84% discount on the ATH price.. Despite this drop, interest in $FLR tokens remains high, with a 24-hour trading volume of $6.1 million as of September 1, 2023. Most of the trading had been on centralized exchanges: Gate.io, BitMart, OKX, and KuCoin, which account for nearly $3.2 million of the trading volume.
[Click The $FLR Chart Above To View On CoinMarketCap]
Final Thoughts
Flare Nework has big ambitions to promote blockchain interoperability and smart contracts. Combine that with the recent conclusion of the XRP lawsuit, and the future looks very optimistic for $FLR token holders. However, while the overall crypto market is still in a bearish slump, potential investors should look at a low $FLR token price as an opportunity. Flare is a top choice crypto as we progress deeper into 2023.
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