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What is Spark (FLR) And The Flare Network?

BitForex Editor
Dec 29, 2020

Cryptocurrency goes far beyond the ever-present and popular Bitcoin and Ethereum, there are other variations of Crypto that many traders have jumped on in a bid to become more financially stable. Bearing this in mind, there is always nee development in Cryptocurrency to cater to the needs of the millions of people on divergent networks. One of these developments is the Flare network which is scheduled to launch in 2021 and its native token will be airdropped to XRP holders. The reason for the introduction of the Flare network is to solve the issue of smart contract capability for the XRP token. Flare aims to scale smart contract networks to make information dissemination more efficient and the exchange of tokens easy. However, before understanding what Spark and the Flare Network are, there are some terminologies that need to be explained for the purpose of this discourse.

What is Airdrop?

For a new token to gain proper awareness, it is distributed for free through a promotional tool which is known as an airdrop. The purpose of airdrop is to ensure that crypto users get familiar with a new token, it is more like a decentralized exchange of assets of the digital space.

What is a smart contract?

A smart contract is an agreement between two parties on the digital space that involves a computer code. For example, if James wants to buy a new Ford from a dealer, the agreement could be, if James pays LOTA motors, $5,000, the car will be sold. Once James pays that money, the car will automatically be given to him. Think of this in the crypto set. If a trader wants to exchange a token for money, the agreement just like it is seen here, will be written in a computer code. This code enables the blockchain in which the token is built, to interpret the information. If the agreement or the computer code checks out, then there is an exchange. The only way token is exchanged on the digital space is if the information is certified at both ends so there is no room for any foul play by parties involved.

Now that these terms have been explained, Spark and Flare network can now be expounded.

Spark

FLR which is popularly substituted for Spark is the native token of the Flare network. The use of spark in this frame of crypto is to prevent forms of spam attacks just like other native tokens on other networks. Furthermore, the spark token can be used for the following:

1.Provision of data to an on-chain oracle

2.Protocol governance

3.Collateral for decentralized applications.

These components rely on the Spark Dependent Applications (SDA) which allows for representations of the token on other networks. This is where XRP comes into the fold.

Flare Network

This network integrates the Ethereum Virtual Machine which translates the smart contracts into readable instructions for the computer to read. The Flare network seeks to find a viable solution for scaling smart contract connectivity. The need to amplify the process through which the decentralized applications work in an effective manner. Here is the bone of contention for the use of the flare network, the proof of stake which will soon be used in Ethereum for example, shows that the security network will be dependent on validators who stake the token. This means in general terms that the token can only be used in that network to avoid breach or compromise of the data. These economic mechanisms utilize to ensure security. However, the Flare network seeks to correct this, the essence is to be able to use the token on different networks whilst maintaining optimum security.

As a result of the huge volumes of exchanges of tokens on a daily basis in cryptocurrency, stakeholders are constantly looking for new ways to ensure the security of all the parties involved in trading, investing, and even mining. The essence is to preserve the data that is being used and successfully transmit such data to its intended recipient without any hassles or breach of security. Hence, the creation of the Flare network.

How does the Spark token airdrop work?

This is the time for XRP holders to maximize their stand in the cryptocurrency space. There are going to be 100 billion spark tokens created, 45 billion of the created tokens will be distributed to existing XRP holders. So even with the price of XRP going down, this is still some exciting news for crypto enthusiasts. These tokens will be distributed via XRP holder’s wallet and also on Binance. This means all the technicalities that would have posed a problem when claiming the airdrop would have been handled for you. All holders need to do is to hold their XRP on Binance at the time of the snapshot.

A snapshot will be taken of the XRP ledger at 01:00 CET or 00:00 AM (UTC) on the 12th of December 2020. Consequently, for every XRP you hold, there is an eligibility claim of 1 Spark (FLR). However, the airdrop of the FLR will happen at a later date, with the rest of the available Spark token distributed after the launch, some report that it may be 25 – 34 months after the date of launch.

In conclusion, cryptocurrency continually seeks to improve the quality of service, especially in the security control aspect. This is to allow users to exchange and make money without the fear of any security breach. Imagine trying to send XRP to another user after the smart contract has been agreed and all of a sudden there is an error. No one wants to buy crypto in fear or lose the token in their wallets. Hence, the constant need to develop highly efficient security protocol to safe track crypto transactions in the digital space. This is what the Flare network seeks to do as it will enable XRP holders to transact spark regardless of the network being used. The tagline behind the creation is scaling networks that do not support smart contracts.

About BitForex:

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BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts,  derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.

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