Executing Smart Contracts on XRPL. Flare Networks was created to solve two major problems in the blockchain industry.
One of these two problems is an unsecure and un-scalabe smart contract ecosystem. The second one is storing value on the public blockchain which cannot be used in a trusted manner with smart contracts. Flare Networks eliminates these two problems by providing a secure and scalable ecosystem for the execution of smart contracts and make public blockchains more compatible with smart contracts.
Toward the end of 2019, Flare Networks partnered with Ripple‘s investment arm, Xpring. The goal was to make the XRP Ledger compatible with smart contracts just like Etherem and other decentralized computers. A few months ago, they launched a Coston test network that allowed them to test smart contracts on the XRP Ledger. They were able to develop XRP applications and potential projects on Coston. On Twitter, the company posted;
“FXRP is a trustless representation of the XRP token on the Flare Network, which enables XRP holders to use smart-contracts with the XRP token. The ensuing ecosystem provides incentives for agents to participate via the earning of fees, as well as the capacity to arbitrage.”
For more details about how the system works, you need to read the whitepaper. It contains a vivid explanation of how Flare integrates smart contracts on the XRP Ledger and what incentives people will get from the new system. Users will be able to use the Spark Token as a representative of the XRP token on the Flare Network when they want to complete transactions.
“The FXRP system is a set of financial mechanisms encoded in smart contracts that enables XRP holders to create andredeem a 1:1 representation of the XRP token on the Flare Network, called FXRP. In order to achieve this, the system relies on agents participating in the system, putting up Spark as collateral and earning fees in return”
Partnering with the Flare Network is just one of the many ways Ripple is promoting the use case of the XRP token across the globe. Xpring has been supporting a lot of projects to this end. Some of these projects, just like the Flare Networks, is meant to increase interoperability between XRP and Ethereum using the Interledger Protocol.
Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.
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Everyone knows that XRP is not a smart contract platform. Last month, a Ripple executive explained that making the XRP blockchain smart contract compatible would only make it more difficult for it to serve as a global payment services option.
Yesterday, however, Flare Networks launched Ethereum smart contracts on the XRP ledger. According to their whitepaper 1.0, people will be able to execute smart contracts on the XRP Ledger through Flare Networks. How exactly does it work?