XRP to CRUSH DEFI Competitors (Ripple Flare Network Next BIG thing in Crypto?)

holders who had xrp in their wallets and exchanges back in december will soon be getting a reward from ripple labs an airdrop of spark tokens the new utility token for the flare network flair network will bring smart contracts and divide xrp and ripple is using some innovative methods and protocols for creating liquidity determining price and validating transactions there's a lot of information to cover and by the end of this video you might come out with a minor in computer science we're calling it the flare drop and today we're going to get into the dirty details of what the spark token is and what's in the future for flare network let's get it welcome to bitboy crypto home of the bit squad the largest and greatest crypto community in all the interwebs my name is ben every day on this channel i show you how to make money in crypto if you like money and crypto make sure to hit that subscribe button in this video we talk about the upcoming spark airdrop and what it means are xrp's new smart contract network flare something about sifting through all this flare drop information is bringing back to my college days sipping red bull until 2am writing endless research papers and today let's tackle this spark breakdown like a good research paper with some definitions but first don't forget to smash up the like button for more content helps the channel and lets youtube algorithm know that you give this channel an a plus also i i never stayed up until 2am writing research papers i i just didn't write them but anyways let's start with xrp you know it we love it well love is a strong word but we do think it's likely going to be making some serious gains this bowl cycle xrp is neither proof of work or proof of stake rather it relies on a consensus protocol to validate transactions xrp cannot be mined 100 million coins were launched at the outset with sixty percent of those coins held by ripple labs and one billion of that sixty percent gets released into circulation per month so let's define some terms flare not just a marine distress signal or the buttons jennifer aniston had to wear in the movie office space shotskis flair is the network that will bring full smart contract utility to the xrp ecosystem and will be used to airdrop spark tokens to xrp holders now we have spark the fuel or the spark that lights the flare network spark is the flare network's native token and is used to collateralize f assets when you hear the word f assets think rap tokens but flare wrapped it will also communicate price information to the flair network's oracle and allow device transactions as well as yield farming and liquidity mining flair finance this is where all the yield farming and liquidity mining will happen this is the devi product of the flare network which will allow swapping and enable rewards for validating transactions putting up collateral the spark airdrop has been in the crypto syllabus since december of 2020 when ripple first announced that an airdrop would be coming to xrp holders sometime in the future in april of this year the official flair twitter let everyone know that the flare distribution will start when the flare network goes live the team is working to make this happen safely as soon as possible is dependent on finishing security testing we expect this at the end of june plus or minus two to four weeks so what is meant here by safely is that the tokens will be distributed in increments so the token doesn't immediately dump when it air drops first stage of the air drop will be 15 of the total amount that holder can claim and the rest will be distributed slowly over a two to three year period the purpose behind the spark token is to act as collateral and provide liquidity for the flare smart contract network the network will use the same coding language as ethereum and all of its development will be identical to what's used with the ethereum virtual machine this means interoperability they'll allow developers who are already familiar with ethereum to work on flair the spark token will also be used to communicate information to the flare time series oracle even though the name sounds like it belongs on the pages of a philosophy book all of it really boils down to this is a computerized mechanism that keeps the price up to date for the network to be decentralized the price of assets on the network can't be determined by data from other exchanges this will create too much of a gray area about whether or not is truly decentralized to solve this issue the oracle gets price information from spark tokens by giving spark holders a vote on what the current price should be the top and bottom 25 percent of the votes are deleted and the oracle is programmed to find the median price number in the data set if a user's estimate is close enough to the oracle output then that user gets a reward in short the flare time series oracle is an automated market maker that uses voting to determine price and spark tokens are both the ballots that are used for voting and the reward for having the most accurate vote device exchanges that we're just used to seeing like unit swap pancake swap curve and balancer well they use automated market makers that operate a little differently it's a new innovation to see voting being used to price assets on an exchange the flair network validates transactions a little differently too proof of stake transaction security is usually dependent on validators who stake the token and gain rewards for mining the next transaction block in a chain as a project scales the validators must also scale and this can cause problems and increase feeds flare network chose to work around the scalability issue by using the flare consensus protocol which allows nodes to collaborate with each other in smaller groups called quorum slices these are trusted groups that come up with a consensus together every two quorums are made to intersect by one or more members being a part of two groups this ensures that the consensus that quorums come to are similar and it keeps the network safe from bad actors the messages between nodes are then tracked by a directed acyclic graph and each message is voted on with either a one representing yes or a zero representing no this is called federated virtual voting and it's what allows transactions to be ordered and completed on the blockchain flair finance will bring divide to the flair network and it will use spark to create secure transactions and yield farming there are currently five f assets that will launch on flair finance xrp stellar cardano dogecoin and litecoin to yield farm with these assets a user will give an agent their asset token such as ada or litecoin they will receive an equivalent f asset in return minus the service fee this f asset will be fxrp f xlm f doge et cetera et cetera and it can be compared to a wrapped asset this is similar to liquidity mining on the curve devi platform where you receive s assets or synthetic wrapped assets when you stake like sptc when an asset token is sent to an agent on flair finance the agent will collateralize the transaction with two and a half times the equivalent price and spark tokens this keeps the transaction secure because if an agent doesn't come through with their end of the smart contract agreement or tries to make off with the funds the user would receive two and a half times the value in spark tokens and the agent would be penalized there will be rewards for putting f assets into the exchange and rewards will also be given for validating transactions according to flair networks the spark airdrop will happen sometime this month anyone who held xrp on the snapshot date of december 12 2020 will be eligible for the airdrop coins exchanges will automatically distribute the allotted share of spark tokens or each eligible wallet ripple employees don't have any access to the airdrop and users have the option to opt out of the airdrop if you don't like free money there's been some chatter on the internet about concern for tax implications of the airdrop and others are looking forward to getting the spark tokens plan to save them and see what happens with the flare network in the future users will receive the equivalent amount of spark token that they had in xrp on the snapshot date and depending on how much xrp that holder had there can definitely be some tax implications for the sudden influx of new funds an article on forbes.com warns that the irs taxes airdrop tokens like income meaning that these funds will have to be reported at tax time and taxes will have to be paid depending on how the value of the asset matures the ability to easily pay taxes on the air drop will vary it might need some planning by holders who will receive a large amount pencils down class flair is vying for the gold star of defy with its own way of being a studious pupil of smart contracts and only time will tell how useful this network will become that's all i got be blessed bit boy out [Music] you

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