The Flare Network: The Next Generation of Smart Contracts

Published on
January 14th, 2021
Duration
59 minutes


The Flare Network: The Next Generation of Smart Contracts

The Interview - Crypto ·
Featuring Hugo Philion and Santiago Velez

Published on: January 14th, 2021 • Duration: 59 minutes

Hugo Philion, co-founder of Flare Networks, joins Santiago Velez, co-founder and R&D division lead for Block Digital, to discuss the Flare Network and its token as well as the incentive structures behind the security of various blockchain networks. Philion explains how the idea for the Flare Network came from leveraging security concepts utilized in XRP and frameworks from Ethereum to create a blockchain that aims to be more secure and scalable by pulling the best pieces from existing crypto protocols. He lays out the utility of the Flare token as provisioning and creating data on the network as well as collateral for transporting tokens from other chains. With 45% of Flare Network tokens being able to go to eligible XRP holders, Philion also argues that distributing to holders of other projects helps bootstrap the community, creating incentives for other communities to join the Flare Network. Filmed on January 8, 2021. Key Learnings: Philion believes that proof of stake is not the optimal way for networks to manage security, but that Federated Byzantine Agreement (FBA) is more appropriate for smart contract protocols, citing that proof of stake tends to lead to centralization. Viewers of this video will walk away understanding some of the concerns about proof of stake and benefits of potential alternatives, allowing investors to better understand the trade-offs between various security protocols.