It is no surprise that XRP has become one of the most popular cryptocurrencies out there. Ripple was established to create a global payment network and allows users to send money quickly with its ledger, which makes it easy for people who need flexible transactions. However, because of this limited use case – essentially making it useless for other functions – you can’t do much else besides using XRPL as an intermediary currency.
In 2020, the Flare network tried to expand the utility of XRP by making it compatible with smart contracts and created its own native token known as Spark (FLR).
What Is Flare Network?
The Flare network is a blockchain-based project that runs on the ‘Flare Consensus Protocol’ (FCP). The FCP will enable smart contract services to be run using XRP, powered by an Ethereum virtual machine. This essentially converts contracts into byte code so computers can understand them.
One big benefit of this is that because it is compatible with Ethereum, you can use services that already exist on the ETH network but without having to switch over to ETH tokens. Flare also works with another consensus protocol known as Avalanche. This protocol has been modified to be compatible with Federated Byzantine Agreement (FBA). FBA is a unique type of consensus mechanism that is mostly used by cryptocurrency networks like Stellar and XRP Ledger.
Spark (FLR) Token
The Flare Network has its own unique token called the Spark (SPARK). SPARK was introduced in December 2020. You can purchase it by exchanging XRP for them at a 1:1 exchange rate. However, since there are only around 450,000 tokens available and you need an equal number of XRP to receive 20K FLR on your account – meaning if you wanted 20K FLR coins then you would have trade 20K XRP as well.
The difference between XRP and Spark (FLR):
The FLR token can be used by smart contracts on the Ethereum network. It comes in handy because it allows you to use services that already exist for ETH without having to switch over all your tokens.
On the other hand, the XRP token can be traded or exchanged for fiat currencies and other cryptocurrencies. It also has a much higher supply of total tokens (100 billion) than SPARK which currently only has 450 thousand coins available according to Live Coin Watch.
How Does the Flare Network Work?
The Flare Network is a project that links various types of distributed ledgers together, and it’s supported by Ripple Labs. The latter company has an xRapid service which allows financial institutions to use XRP for international transfers between countries with the help of their software solution.
Unlike other consensus algorithms like Proof-of-Stake, Flare’s consensus algorithm can function to maintain the security of the network without relying on what is commonly called economic mechanisms.
Spark (FLR) Price Prediction in 2021
The Flare Network is still a project that is being developed and not even that active on the market yet. This means that the price of Spark (FLR) will depend on how many people want to use it in the next few years. There is no direct way of knowing this at the moment.
Although FLR is a long way down from its all-time high price, it seems to be preparing for another uptrend that might take it to or close to $2 by the end of the year.
At the time of writing, FLR had gained 329% in 24-hours, according to price tracker Nomics.com. This is a good sign, and we could see a much higher price by the end of this year and the next years.
If the token encounters the right catalysts or bull markets, it could potentially go to $5 in 2022 or even more. However, given that there is very little known about it now, we can’t say for sure how the price will play out in the future.
Three Method to Invest Spark (FLR)
- Holding Spark (FLR) Tokens- Holding is a term that’s commonly used in the cryptocurrency scene to mean ‘holding’ or ‘long-term holding’. This means that you are going to hold onto the token and only sell when the price is way higher than your entry or purchase price. The advantage of HODLing is that you don’t have to spend time buying and selling the token. You simply hold onto it until the price rises so you can make profits when you decide to sell.
- Trading with Spark (FLR) Tokens- The second method is to buy and sell Spark tokens on exchanges like Binance, eToro, etc. By monitoring price movements in real-time, you can make a profit from buying at a low and selling at a high. Trading usually involves more risks than HODLing, but on the other hand, it often pays off more as you will get instant gains and don’t have to wait for a long time before making profits.
- Investing in the Technology- Flare’s technology is visionary. It aims to boost XRP’s utility by adding smart contract support. Not only will this increase XRP’s utility, but it will also lead to an appreciation in the token’s value because of all the increased demand for it. So, if you believe that XRP and smart contract support is going to make Flare and its token more valuable, then this is might be a good way to invest.
