Flare Network, Spark Token, and FXRP
Every online transaction has now become swift and more secure, thanks to enhanced technologies and automation of several important processes.
To assist online and e-commerce businesses with their transactions and enable an entire new fleet of features, the Flare network plans to introduce Spark tokens in an Airdrop for XRP token owners, giving XRP an entire new edge in the highly competitive crypto space.
We are going to dive into the Flare Network, Flare Finance, the tools, the tokens and other important details to help you better understand this emerging financial eco-system that is designed to bridge and give utility to all the value in the world.
What Is Flare Network?
Flare is the new blockchain system complying with Flare Consensus Protocol (FCP.) It is the world’s first Turing complete Federated Byzantine Agreement (FBA) network combined with the Avalanche consensus protocol. This means the network is scalable, secure and decentralized right out of the gate.
The company aims to provide a secured and monitored platform built on the XRP ledger, that is highly efficient and doesn’t waste value that is traditionally used as a means to secure most blockchain networks.
Think of it as a bridge that becomes interoperable with other blockchains.
Unlike other blockchains that require a native token using the proof-of-stake protocol, the Flare Network doesn’t rely on such mechanisms, which provides the runway it needs to appreciate in value.
The Flare Network has incorporated Ethereum Virtual machines to develop decentralized applications, which are always active and never shut down. This technology helps companies secure their data from online hackers and restricts modifications to their content. This also enables lower cost and faster transactions, allowing for the true Defi protocol to progress with no barriers.
How the Flare Consensus Protocol Works?
Leaderless: Decentralized and more difficult to attack
Asynchronous BFT: Rapid payments with tracking and ensuring finalization.
Max scalability: High level of transactions processed per second. Capable of handling large values.
The world is progressing and shifting towards blockchain programming; the Flare network plans to capitalize on this opportunity and is aiming to develop dominating digital currencies that combine all the best and in-demand features.
What is Flare Finance:
Flare Finance is the DeFi platform providing you a suite of financial tools designed to work on the Flare Network. You can move your digital assets onto Flare Finance and leverage the value without ever selling. There are multiple ways to do this depending on which tools you use.
Flare Finance Tools:
Here are the tools you can find available once Flare Finance goes live. Most of these tools are designed to collateralize your digital assets onto the Flare Finance network and use these tools to earn Flare and Yield Assets which we will cover in more detail below. Ultimately this generates a passive income and designed to reward early adopters.
FlareX: This is simply an application that allows you to swap currencies and provide liquidity pools.
FlareWrap: You can take an asset outside of the Flare Finance network and wrap it with a Flare Finance asset. FlareWrap in its basic form bridges these assets and allows immediate usage on our product suite.
In its more advanced form, it allows for stable coin assets like Tether, USD Coin, and TerraUSD to be basketed to form CrossUSD (cUSD). CrossUSD is a basketed asset that maintains its peg closer to the relative underlying assets that collateralize it. CrossUSD maintains a more accurate dollar value by taking an average of the best available price of all underlying assets.
FlareFarm: The platform allows holders of various F-Asset and Liquidity Pool tokens to participate in governance, yield farming and fair launch distributions for new projects entering the Flare Network and/or Flare Finance Ecosystem. In simple terms, you basically store your assets in a variety of different pools that pay out revenue.
FlareLoans: Asset backed loan issuance platform which provides DODL by enabling holders to pool their assets to be loaned against a borrower’s collateral.
Flare Mutual: Decentralized mutual fund that allows people to share risk together without the need for an insurance company.
Flare Assets:
Y-assets: Y-assets are movable, transferrable able to be wrapped and brought from other networks. This list will continue to grow but this is the latest. (FLR, XRP, LTC, XLM, DOGE, ALLGO, ADA, SHIB, CUSD, SANSHU, TEL, CEL BNB, CAKE, XDC, PAC, GALA, and CSC)
Flare Time Series Oracle: Signal Provider
From everything we can find, this appears to be the nucleus of the system that aggregates price data and feeds it into the Flare Finance tools.
It essentially replaces the need for mining, which locks up the value in a blockchain unnecessarily to protect the network.
Your Spark (FLR) tokens can be used in a couple different ways and it’s all designed to be done at no risk as you can always retrieve your assets.
You can use your FLR to delegate votes to an FTSO that sets the price and rewards you with Oracle rewards (FLR.)
Or, you can send your FLR to an F-asset agent that collateralizes your digital asset and allows you to earn passively.
We are not giving advice or telling you what to do. This is something you need to examine and decide what is the best strategy for you.
What Are the Spark Tokens?
Spark tokens, initially, were the native tokens released by the Flare network. Flare named its token Spark at the time of their historic launch.
On December 12, 2020, Flare Network took a snapshot off all the participating XRP wallets, offering a 1:1 spark airdrop for every XRP owned.
The prices went from $.20 – $.91 in anticipation of the airdrop as people flocked to accumulate as many XRP as possible so they can get their share of the spark tokens.
Many digital wallets worldwide supported the Spark tokens airdrop and show their immense support towards its rapid development.
Now the airdrop is over and we are just watching the development and launch of the Flare Network and use of the spark token and integration with XRP.
Recently, the Flare network has added other digital assets that can be used within the Flare Finance eco-system. These are LTC, ADA, DOGE, and XLM at the moment.
How XRP and and spark work together?
XRP is the first of many blockchains that will have the opportunity to work with Flare. XRP is the fastest digital asset, enabling real-time global payments, getting accepted in new wallets across various platforms.
Using XRP, payment providers can expand their global outreach, improve their payment settlement times, and lower charges on foreign transactions.
For more on this, I encourage you to watch this video below that covers Spark token and the interoperability with XRP.
There is also some important information regarding how the IRS views the Spark token and the likely tax implications.
What Is the FXRP System?
Supported assets, starting with XRP, can be sent into a bridge/agent that mints FXRP. Keep in mind, you need FLR in order to convert your XRP into FXRP.
The agent locks up 2.5x the value of your XRP in FLR to prevent them from running off with your digital asset. They also receive a 0.1% creation fee which can be refunded later when you convert back to XRP.
You receive the 1:1 ratio of your XRP that gets transferred and is now usable as FXRP on the Flare Networks.
If you want your XRP back, you simply reverse the process by sending your in your FXRP and, the Spark (FLR) gets returned to agent which was held as collateral, minus the 0.1% creation fee that was originally paid.
Once you have FLR and FXRP, you can use these F-assets to delegate votes and grow your
This video below explains in great detail how XRP, Spark token and FXRP work together.
FXRP systems permit the originator and current XRP holder to transfer their XRP to another address or agent on the XRP Ledger. FXRP is a protection protocol and is scalable with all different digital ledgers and mechanisms. It assists its users by providing them with an easy and secure way to redeem their tokens.
The Spark Airdrop
Flare network is planning to distribute spark tokens in high volume; 45 billion Spark tokens are initially designed to be unlocked in summer of 2021. Of which, 15% will be the first allocation and the rest will be sent to XRP holders over a 24 – 35 week period.
Who Is Eligible for Spark Airdrop?
Anyone holding XRP was able to participate in this airdrop. Over 50 major crypto brokers and exchanges participated. Some states like New York did have restrictions using a public exchange but there was always the option of using a hardware wallet like Ledger.
How to Claim Spark Tokens?
Most exchanges handled it automatically without you having to do anything. Those who wanted to use a private wallet or cold storage needed to use Ledger wallet in order to be eligible for the airdrop.
What to do with your Spark Token?
Just because you received your FLR airdrop, you are not done yet and it’s important you pay attention and follow through if you don’t want to miss out on the biggest parts of using Flare Finance.
Once you get your hands on FLR, you will receive DAOFlare (DFLR) 30 days later if you choose not to sell your FLR during this time.
Once you receive your DFLR, you then have 7 days to swap your DFLR or YFLR.
This is to keep the money moving, provide liquidty, and reward those who take action.
The future of Flare Network and Spark Token
There is no denying that this is a real game changer and a threat to many coins in the space.
The Flare Network is empowering XRP and other digital assets to offer smart contracts and have connectivity with other blockchains, making a huge leap ahead in this space.
The rails are being built and XRP is the first beneficiary to this extraordinary leap in the crypto space.
Starting in the first quarter of 2021, Flare Finance launched their beta test to the public and continues adding support for more coins. The latest digital assets added to the Flare Network are Litecoin, Stellar Lumens, ADA, and Doge. Many more are anticipated.
Final thoughts:
The future looks bright for the Flare community. The more we look into this project the more excited we get.
Today we wanted to give you a brief overview of the Flare Finance Network and the underlying pieces but there is so much more.
Check back on this site as we continue to write more about Flare, the relevant news and updates along with the launch of the new Songbird protocol, a whole new layer and a brand new token that will have real, transferrable value and be used to test out the Flare Networks with zero risk in a live environment using your own coins.
We will also break into how you can produce stablecoins that can be loaned out to earn interest, all by using your FXRP asset.
People really have no idea how big this is going to be.
Let us know in the comments below what your thoughts are on Flare and this emerging-eco system that appears to be swallowing, we mean making all blockchains interoperable.
