The system also relies on participants who put up Spark Tokens as collateral and earn fees during the creation and redemption of FXRP. It can be created and redeemed by XRP holders through smart contracts. Is it starting to come together? Yes, this is where XRP comes into the picture.įXRP is a trustless representation of the XRP token on the Flare Network. SDAs can also allow for trustless representations of tokens on other networks – even ones that don’t natively support smart contracts. These three components aim to enable an ecosystem of applications that rely on Spark called Spark Dependent Applications (SDA). In addition, the Spark Token can be used for the following functionality:Īs collateral within decentralized applications (DApps) If transactions would be free, spamming and congesting the network with useless transactions would also be free. Its base use case is similar to that of other native tokens – to prevent spam attacks. Spark is the native token of the Flare Network. Basically, according to the creators of Flare, this design choice adds more versatility to the token without compromising security. Flare’s consensus protocol doesn’t require this.īut why is this worth noting? Because it enables the network token to be used for other types of uses – even ones that would be dangerous for networks that do rely on the token for security. This means that, by extension, the security will be dependent on the token (and the amount of it that’s staked). Once Ethereum fully switches to Proof of Stake (PoS) in Ethereum 2.0, the security of the network will be entirely dependent on validators who stake the token. What are these economic mechanisms, you ask? Well, take a token like ether (ETH) for the Ethereum network, for instance. We won’t get into the technical nitty-gritty here, but the bottom line is that Flare’s consensus algorithm doesn’t rely on economic mechanisms like Proof of Stake (PoS) to maintain the security of the network. FBA is a consensus mechanism used by networks such as the XRPL and Stellar. In short, Flare aims to be a way to scale smart contract networks.įlare uses a consensus protocol called Avalanche, which has been adapted to work with Federated Byzantine Agreement (FBA). This means it can combine some powerful properties to create an ecosystem of decentralized applications. Turing-completeness means that it can run virtually any computational task, as long as there is enough memory to run it. The EVM basically converts smart contracts into instructions that computers can read – this enables the network to run Turing complete smart contracts. How can you get your hands on it? Let’s read on.įlare Network is a distributed network that integrates the Ethereum Virtual Machine (EVM). Spark is the native token of this network, and a portion of its supply is airdropped to eligible XRP holders. This is what the Flare Network aims to solve by introducing support for smart contract capability for the XRP token. While it has been optimized for this use case, it has limited utility when it comes to other types of functionality. All you have to do is hold your XRP on Binance, and you can get your share of the airdropped tokens.Īs you may know, Ripple’s XRP Ledger (XRPL) is a global payment and foreign exchange network. A portion of the supply is airdropped to XRP holders – including those on Binance. Spark Token is the native token of Flare. This means that it allows the XRP token to be used with smart contracts. It can be used to create two-way bridges between networks, such as Ethereum and the XRP Ledger. Flare is a distributed network with some unique properties.
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