Flare is a distributed network with some unique properties. It can be used to create two-way bridges between networks, such as Ethereum and the XRP Ledger. This means that it allows the XRP token to be used with smart contracts.
Flare Network is a distributed network that integrates the Ethereum Virtual Machine (EVM). The EVM basically converts smart contracts into instructions that computers can read – this enables the network to run Turing complete smart contracts. Turing-completeness means that it can run virtually any computational task, as long as there is enough memory to run it.
This means it can combine some powerful properties to create an ecosystem of decentralized applications. In short, Flare aims to be a way to scale smart contract networks.
Flare uses a consensus protocol called Avalanche, which has been adapted to work with Federated Byzantine Agreement (FBA). FBA is a consensus mechanism used by networks such as the XRPL and Stellar. 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.
What are these economic mechanisms, you ask? Well, take a token like ether (ETH) for the Ethereum network, for instance. 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. This means that, by extension, the security will be dependent on the token (and the amount of it that’s staked). Flare’s consensus protocol doesn’t require this.
But why is this worth noting? Because it enables the network token to be used for other purposes – even ones that would be dangerous for networks that do rely on the token for security. Basically, according to the creators of Flare, this design choice adds more versatility to the token without compromising security.
Flare Network is a new way to scale networks that don’t support smart contracts. Flare allows XRP to be used with smart contracts in a trustless way.
Author: Kenzo IgiranezaUpdated on 2021-02-01.