What is the Flare Network and What Does it Do?

Flare’s goal is to bring the use of applications and smart contracts built on blockchains like Ethereum to other networks like XRP Ledger, which have previously been unable to support them on their own.

Flare Network is a decentralized blockchain platform that seeks to bridge the gap between different crypto networks that are currently quite fractured, and mostly isolated from each other.

Digital assets which have a practical purpose in the use of these applications will automatically be in higher demand as the usage of these applications increases over time. One such asset is FLR, the token created for multiple uses on the Flare Network.

Flare also has a capped supply. In our current high inflation environment, digital assets with a fixed maximum supply, which cannot be easily influenced by a central authority such as the Federal Reserve, naturally become more attractive as a way of shielding oneself from inflationary pressures.

Many developers of crypto platforms are now striving to increase the value of their underlying coin or token by building more functionality into their use. A great deal of current development in the world of crypto is focused on the applications that are built onto the networks, rather than just the processing of payments.

Flare Calls Itself the Blockchain for Data

The Flare Network uses two protocols for acquiring real-world data and feeding them into smart contracts built on various blockchains. First, they have their own oracle, known as the Flare Time Series Oracle, that provides smart contracts with decentralized data feeds.

Additionally, they provide what they call ‘The State Connector,’ a tool that allows applications built on the Flare Network to seamlessly access data from other blockchains and the internet. The mechanics of how these two protocols work can be studied more closely on Flare’s website.

Beyond these two protocols, the Flare Network has strengthened its position in the world of crypto development by integrating the Ethereum Virtual Machine.

In simple terms, this means that users of the Flare Network can access the numerous tools and applications that are already built on the Ethereum blockchain. Developers who have experience with building on Ethereum can easily transition to the Flare Network and take advantage of the strengths of each system simultaneously.

Another area of interconnectivity between Flare and the surrounding landscape of crypto development is the integration of the Avalanche Consensus Protocol One. The goal here is to take inputs from multiple nodes in the network and bring them into agreement so that the data can be used as an input to a smart contract.

Avalanche is unique in that it doesn’t use proof-of-work or proof-of-stake mechanisms, but has its own way of validating outside data. The mechanics of its functionality and its advantages over other forms of consensus can be found here.

The Beneficial Results of Interconnectivity

While the precise methods the Flare Network uses to connect itself to other blockchains and to real-world data can seem rather convoluted, the results of this connection are a bit easier to conceptualize.

The Flare Networks’ unique characteristics make it a strong option for use in decentralized finance applications. Lending platforms, automated trading, and the automated execution of financial agreements between multiple parties are all possible through smart contracts built on the network.

Many of these tools are still in the early stages of development, but the number of potential use cases is so high, it is hard to pin down all the possibilities.

Another industry where Flare can make its mark is gaming. The gaming industry is, by all accounts, enormous, and the Flare Network can play a role in bringing real-world data into action, and can support the ecosystem of NFTs (non-fungible tokens) that are increasingly being integrated into new games.

Supply chain management is yet another area where the Flare Network could make a serious impact in the future. Smart contracts can make automated ordering, payments, and tracking of shipments more efficient and transparent and can reduce some of the human error that currently exists in supply chains.

These are only a few examples of areas the Flare Network can revolutionize things. Smart contracts are still in the early stages of development, and their full potential is yet to be unlocked and put to practical use. But if you are looking to benefit financially from its potential growth, one way to do so is by investing in Flare’s native token – FLR.

The Tokenomics of Flare (FLR)

In simple terms, the FLR token is the fuel that powers the Flare ecosystem. In order for potential users to make use of the wonders of Flare, they must first own the token.

A built-in source of demand for the token is something that sets FLR apart from crypto assets like Bitcoin, which is often seen as a store of value, and meme coins like Safemoon, where the price action of the token is based largely on hype, celebrity endorsement, and other more volatile factors.

FLR can be used for payments and transactions on the Flare Network, but token holders can also receive rewards by temporarily delegating their tokens to a specific information provider in the system.

The provider that supplies the data feed with the most accurate data earns the highest number of reward tokens to share with its delegators. These rewards can be claimed as frequently as every 3.5 days, and can then be delegated again, giving token holders a chance to compound their rewards.

FLR tokens can also be used as a form of governance. Proposals put forth by the Flare Foundation can be voted on by FLR holders, with larger holders having the most sway. So owning the token gives you a voice in the direction and development of the network going forward.

Flare Price History

The price of Flare token has been declining since early 2021 and is down 99% since its all-time that year. Flare traded as high as 2.25 versus Tether in 2021. As of mid-2023 it is trading near 0.015.

While Flare provides benefits to users, so far that is not reflected in its price performance. For those looking to invest in cryptocurrency, it is a highly volatile token that is still in its infancy. It has not achieved widespread adoption or a large following.

FAQs

How do I purchase FLR tokens?

A variety of crypto exchanges are easily accessible and deal in FLR tokens. Kraken, Coinbase and crypto.com are just a few available options. It can be purchased with other cryptocurrencies or fiat currencies.

How many Flare (FLR) tokens are there and how are they distributed?

The maximum supply of FLR is 101.19 billion tokens. Of those, there are 20.85 billion tokens currently in circulation. Information on how the tokens have been distributed can be found on Flare’s website.

What is a smart contract?

A smart contract is a self-executing digital agreement between multiple parties that is executed when predetermined conditions are met. It is handled digitally, avoiding some of the common issues of sending the contract back and forth between parties.

How does Flare (FLR) compare to Bitcoin and other traditional crypto?

The most obvious difference between Flare and more traditional crypto coins is utility. You must own FLR tokens to use the Flare Network. One network and asset with similarities to Flare is Chainlink.

How do I store Flare tokens?

FLR tokens can be easily and securely stored using many popular crypto wallets.

Is the Flare (FLR) token a worthwhile investment?

The future is difficult to predict, but if you believe the usage of the Flare Network will grow over time, then FLR tokens are one way you could possibly benefit financially. Through most of 2021, 2022, and the first half of 2023 the coin did not perform well, losing nearly all its value relative to all-time highs.

Final Thoughts on the Flare Network

The crypto world is well known for wild swings, crazy hype, and FOMO that can often obscure the intrinsic value or lack of value of the asset that lies beneath. While the success of more functional crypto assets like FLR is far from assured, they at the very least possess a fundamental point of strength.

A specific service being provided in exchange for specific compensation is an economic principle that people can see the logic in, and perhaps rely upon when market conditions become weak and uncertainty looms over all your investments.

That said, FLR has not performed well and has experienced a downtrending price through much of 2021, 2022, and 2023.