Flare is a Layer 1 EVM-compatible blockchain designed to connect isolated blockchain ecosystems, like Bitcoin and Ethereum. Its goal is to bridge the gap of native non-smart-contract supporting blockchains to decentralized applications (dApps) and decentralized finance (DeFi).

Flare achieves this through two of its core protocols: the State Connector and the Flare Time Series Oracle (FTSO), both designed for real-time integration of external data into smart contracts.

Key Components / Features

  1. State Connector Protocol: Enables Flare to safely and efficiently source state data from external blockchains and bring it on-chain, enabling decentralized cross-chain interactions.

  2. Flare Time Series Oracle (FTSO): It is a decentralized oracle system that gives real-time data feeds, such as asset prices and market indices. It ensures accurate and reliable data through a weighted median of price submissions from token holders.

  3. EVM Compatibility: Natively supports running Ethereum-based smart contracts. Thus, dApps that currently operate on the Ethereum platform can easily be migrated over to Flare with no modifications whatsoever.

⚡ FXRP: A tokenized representation of XRP on the Flare network. With FXRP, XRP will be able to take part in DeFi applications. It will thus extend use cases of XRP to act as collateral or to take part in yield-generating opportunities.

🎯 Wrapped FLR (WFLR): A 1:1 ERC-20 token of FLR, which will allow governance participation and staking without locking up liquid assets.

How it works

  • State Connector: Uses a request-commit-reveal (RCR) protocol, wherein decentralized attestation providers attest to data on external blockchains and send proof to Flare. This mechanism ensures that cross-chain data is both accurate and verifiable.

  • FTSO: FLR holders delegate their voting rights to data providers, who periodically report price estimates. The system then calculates a weighted median, and individuals whose submissions are within the interquartile range are rewarded.

  • Consensus Mechanism: Flare uses an Avalanche consensus protocol with Proof of Stake (PoS) for fast, secure, and scalable network operations.

Token Use Cases

🔹FLR:

- Transaction Fees: Prevents network spam.

- Governance: Facilitates voting for upgrades and changes in the network.

- Staking: Locks up the network to ensure participation in FTSO.

🔸FXRP:

- It allows XRP holders to utilize their assets in Flare-based DeFi applications without losing access to the original asset's liquidity.

- It serves as a bridge asset for cross-chain financial operations.

🔹WFLR:

- Facilitates governance and voting for FTSO and other decentralized protocols.

Value Accrual / Flywheel

The integration of external blockchains and real-world data into smart contracts is what drives the growth of Flare's ecosystem. With more dApps using its protocols, the demand for FLR and FXRP grows, fueling network activity and utility. This creates a self-reinforcing ecosystem of value creation by attracting developers, liquidity providers, and users through growing transaction volume.

Governance

Community-governed, non-profit Flare Foundation helps support development and partnerships as well as drives the network towards a community-defined focus.

Flare Foundation acts in an essential capacity to assure the sustainability of the network and that of the interest of the community.