The Flare Network is a next generation blockchain with goals of providing smart contracts to crypto without the need to lock up, or stake, crypto as a way to secure the network. Most Proof of Stake blockchains need to stake their native token in order to secure the network. This creates scaling issues as the more value that is brought on a blockchain, the more tokens are needed to be locked up to secure that value which could otherwise have been used for utility. The Flare Network plans to solve these issues and more by encorporating next generation blockchain components that also deliver faster transaction settlement times at a fraction of the cost.
The Flare Network's native token is Spark (FLR). Spark (FLR) has many purposes as it can be used as collateral in applications, a governance vote for the network, and an incentive for network participants to be active and help build utility. Unlike Proof of Stake blockchains, The Flare Network does not rely on Spark (FLR) to secure the network. This allows for the token to be used for utility and allows the network to scale.
Below we have grouped together some of the core concepts of the Network as well as providing a general terminology guide. Try not to focus too much on the names of some of the terms but rather why they matter. This list is not exhaustive, but a general overview of the network.
It is important to understand some of the fundamental concepts as you invest in the network in order for you to maximize your wealth, or should you decide to build applications on it.
Referred to as the “Beating Heart” of the Flare Network by the network’s co-founder Hugo Philion, the Flare Time Series Oracle (FTSO) is responsible for collecting and ensuring accurate data from the real world, making it available to the network. The FTSO is also an incentive mechanism for the network, giving rewards to active network participants who contribute to the network. The FTSO is a critical component of the network.
Signal Providers, also known as Oracles, are off-chain systems that provide data to the Flare Time Series Oracle (FTSO). The FTSO makes the data available for applications to use. This creates a decentralized environment that can interact with the real world. Signal Providers play a vital role in expanding a decentralized network because smart contracts alone cannot communicate with the off-chain world.
In order to unlock more value of cryptos that do not have access to smart contracts the Flare Network allows for these supported cryptos to be brought onto the Flare Network via the F-Asset system. The process of converting your crytpo to its F-Asset form on the network is referred to as ‘Minting’. Now that your crypto is on the Flare Network as an F-Asset, you have yet another way to earn yield, learn how.
What is a network without utility? Providing data to a network is only as useful as the applications that utilize it. As the network grows there will be more and more applications built, growing the network’s utility.
Get familiar with blockchain and Flare Network specific terms. Use this as a reference guide.