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.

Comments

Transcript

  • DW
    Dean W.
    15 January 2021 @ 19:40
    I had a mixed response to this interview. One the one hand, I like Santiago’s interviewing style and questions he poses. However, in light of the major US lawsuit initiated against Ripple and the general negative perception of Ripple in the crypto community and its lack of decentralization, I think there are many interesting projects and guests that have nothing to do with Ripple that we could hear from. It was good to hear some discussion about FBA and challenges that Proof of Stake and other non-PoW consensus protocols have. I believe that FBA may well be a viable consensus mechanism and finding one or more viable non-PoW consensus methods is crucial for the crypto future. With regard to the project itself, it sounds like the Flare network is a project that took one element from Ethereum (EVM), an element from Stellar (FBA), and code from Aave and cobbled together a “new” project. I don’t see why 100 other teams couldn’t do the same thing since this is all open source material, so I don’t see the unique value proposition for Flare. Perhaps because they’re first there will be some value. Although Flare may not be classified as a security in the UK, I don’t think that answers the question of whether it’s a security in the US. It doesn’t sound decentralized and it certainly sounds like creating 100 billion tokens out of thin air and keeping 25 billion for the for-profit company was done for the purpose of creating a profit. There was also no discussion of gas fees. Since the project uses EVM, there must be some gas fees to pay for the computing resources.
  • OD
    Oleg D.
    14 January 2021 @ 13:57
    A for profit org. (Flare) keeps 25% of the supply, while the foundation receives 30%. There is little here that could be labeled as being decentralized. Pretty disappointed in the chosen tokenomics, but specifically why they have chosen to go for XRP is beyond me, considering all the current allegations that have been raised the last few years. Big trust issues here for me.
    • DM
      Danny M.
      14 January 2021 @ 19:10
      The Financial Conduct Authority in the UK confirmed that XRP is not a security, the company behind the Flare Network is officially residing in the UK too so no issues in that regard.
    • PK
      Patrick K.
      15 January 2021 @ 19:33
      Don't worry about Trust. Someone like Jack Dorsey will be in charge, who will look after everyone.
  • MC
    Mike C.
    15 January 2021 @ 10:41
    Santiago your conversations are the most content rich and informative on the RV platform. Im sure many people would disagree but for me RV would just be a sales and marketing channel without you. You are the guy on RV who is breaking new ground and exploring the real utility of crypto and sharing it with us. Thank you. I also want to thank you Santiago for your Twitter feed. I can't believe how much I am learning by following you. Thanks also to you and Travis Kimmel for being willing to engage in the USDT debate and sharing your thoughts and retweeting new information you discover. I might be interpreting this incorrectly but I get the sense its a bit of a touchy subject inside RV. Maybe the USDT debate rubs up against some internal RV culture. idk. Thanks.
    • DD
      Dmitry D.
      15 January 2021 @ 11:22
      Best interviews on RV Crypto for sure, an absolute must follow on Twitter!
  • CD
    Chris D.
    14 January 2021 @ 20:52
    Would it make sense for RV to interview someone who can provide clarity on the XRP situation? Such a piece could cover - 1) Why XRP's status is controversial/unknown/changing 2) Where XRP is viewed as a security and where it is seen as something else 3) What is the likely outcome of Ripple Labs' current legal battles 4) Impact on applications like Flare. How much does it matter to Flare if XRP is a share of Ripple Labs? What happens to Flare if XRP is forced to stop trading?
    • BW
      Bart W.
      15 January 2021 @ 11:02
      They can just interview Brad Garlinghouse! Or, one of the lawyers from their 20+ people-strong legal team
  • VM
    Veliko M.
    15 January 2021 @ 04:46
    Does anyone know what is the name of the tune from the intro? Super catchy :)
  • BC
    Bushin C.
    14 January 2021 @ 21:55
    Flare Network is a new way to scale networks. I am very positive about FLR roadmap. Good resolution path for integrating Litecoin first before going to Bitcoin.
  • AD
    Arun D.
    14 January 2021 @ 21:47
    Great interview. Flares a very exciting project with a extremely well thought through design.
  • MS
    Marty S.
    14 January 2021 @ 20:58
    Good interview Santiago. Well done. I learned alot.
  • MJ
    Marius J.
    14 January 2021 @ 20:13
    Too much I do not understand. Can RV do a educational video on this?
  • TP
    Timothy P.
    14 January 2021 @ 18:33
    This one gave me quite a chuckle. Mr. Velez - after his last XRP promotional tour, has witnessed his token cratering amid an SEC lawsuit, and subsequently every major exchange delisting his token. Why shouldn't we listen to him with those stunning credentials? As for Hugo - he starts out promisingly enough citing risks in Proof-of-Stake (miracles of miracles, not a single interviewee on RV has done this thus far), then pivots into a chimera hybrid token that promises to inflate away -10% of your purchasing power to "incentivize you to use the network" just like the legacy crap fiat system does -- at a hefty multiple. He also pulls out a lot of buzzwords, but "trust" and "oracles" makes it in there -- which is just a variant of the PoS nightmare that we've seen during ETH's panic-pivot. Funny thing, neither one mentions the legal liability of Flare hooking up their ship to XRP's sinking barge -- you'd think on a financial network like Real Vision you'd have that kind of disclosure up front and in capital letters. Nope -- I have to post it, instead. What a friggin joke...
    • CH
      Crag H.
      14 January 2021 @ 20:08
      What I love most about all of these projects is how ALL of them are building the "next generation" of something. I guess we must be on like the 19th generation of smart contracts by now? Amazing innovation. Truly amazing. Oh, and now 0 of the last 20 videos on the RV Crypto channel is about Bitcoin. FINALLY. I mean, who cares about that boomer coin right?
  • RM
    Ryan M.
    14 January 2021 @ 19:40
    Honestly, I'm surprised that RV would host an interview to dive into this project.. This is a centralized money grab on top of a legacy fintech tech stack. Protocols that are actually trustless and decentralized are poised eat the world.. not this garbage.
    • CH
      Crag H.
      14 January 2021 @ 19:52
      100%
  • RM
    Ryan M.
    14 January 2021 @ 19:44
    All that being said, I will definitely continue to support RV and this crypto channel, as I'm sure that a lot of people are actually interested in this project for whatever reason. Also, you have had a number of very interesting guests on, and Santiago, you are a skilled interviewer, and I appreciate everything you do.
  • CD
    Chris D.
    14 January 2021 @ 17:44
    How does the crash & burn of XRP play into this? XRP seems like a VERY risky asset which will be spending years in litigation. Should they be pivoting away from it?
  • MD
    Matt D.
    14 January 2021 @ 12:25
    Ethereum 3.0
  • ML
    Matthew L.
    14 January 2021 @ 12:11
    LTC =)
  • ML
    Matthew L.
    14 January 2021 @ 11:49
    I love the trust protocol... trust isn't all machine =) love the quorum concept too
  • ML
    Matthew L.
    14 January 2021 @ 11:47
    Brilliant. ETH = change. Love the philosophy in the interview.
  • KH
    Kevin H.
    14 January 2021 @ 10:25
    WOW! That’s all I can say!
  • BC
    Beau C.
    14 January 2021 @ 07:44
    Terrific interview, well articulated and candid about design considerations and their vision. This helps towards driving the yield features the industry so badly needs. Next up Flare Finance on top of Flare Networks. Exciting times ahead.