Anna KeySat, Dec 12, 2020 3:38 PM
Crypto Community Ready For Ripple Hard Fork, Spark (FXRP)
The upcoming fork has driven the XRP token price up 123% in the week of November 23. The reason for this jump is in the upcoming airdrop of Ripple's hard fork — Spark (FXRP). For each XRP, holders will receive a Spark token, for which 45 billion tokens have been allocated. The airdrop is scheduled for December 12 at 00:00 GMT and will run for six months. The distribution of the received FXRP tokens will take place in the first quarter of 2021. Now let's take a closer look at the details of the upcoming event.
Flare, A New Blockchain Network
Flare Network blockchain company provides the full functionality of Ethereum smart contracts on Ripple XRP Ledger. This means that any existing Ethereum application can be deployed on Flare, including decentralized ones. Flare is the world's first completely Federated Byzantine Agreement (FBA) Turing network. The nodes use the Avalanche consensus protocol with key adaptation to the FBA consensus topology.
Flare Network uses the Ethereum Virtual Machine (EVM), allowing the network to run full Turing smart contracts. Thus, payments for a smart contract can be made and received in XRP through the Interledger protocol integrated into Flare. Spark is used to provide FXRP. Spark token users provide it as collateral, for which they receive commission payments. Flare Network addresses two key challenges for the blockchain industry:
- Scaling. Flare is a new way of scaling smart contract platforms that do not tie security to the Spark (FXRP) token value.
- Ecosystem. Providing a secure ecosystem for smart contract execution.
What Is A Fork And What Is It For?
Technology evolves and over time it is necessary to make changes, which often lead to the creation of new blockchains and cryptocurrencies. Any update to the blockchain protocol is called a fork, and, depending on the depth of the transformation, is identified as a soft fork or a hard fork.
A hard fork is a radical modification of the protocol and a rejection of compatibility with older versions of the currency. The result is two different chains.
A soft fork is also a change in the encryption protocol, but, at the same time, old software versions recognize new blocks.
XRP token is an internal cryptocurrency of the Ripple decentralized payment system, which operates based on distributed ledgers. Unlike Bitcoin and Etherium, Ripple does not have a blockchain. Online transactions are verified using a patented technology — the Ripple Protocol Consensus Algorithm (RPCA) by polling, servers, or nodes in the network based on consensus decision on the authenticity of the transaction. This ensures instant confirmation of transactions without any central authority. Thus, XRP remains a decentralized token, and, at the same time, a faster and more reliable one.
XRP issuance has been controlled by a smart contract since 2014. At that time, XRP already was second in terms of capitalization after Bitcoin.
The main use case for XRP is an exchange currency for fast and cheap cross-border transfers. A transaction is proceeded in a few minutes, not days. The size of the commission can be reduced by two or more times. The transaction cost on Ripple is $0.00001. The more countries use the XRP token for financial calculations, the easier and cheaper it will be to use it.
Spark (FXRP) Hard Fork Review
Unlike Bitcoin Cash and Ethereum Сlassic forks, which are hostile to the underlying projects and operate in completely different networks against each other, the Spark hard fork is designed to add power to the existing XRP cryptocurrency. Spark (FXRP) is a utility token of the Flare Network platform designed to provide functionality in an XRP Ledger similar to Ethereum.
FXRP tokens are designed to generate payloads about Flare through Oracle, as well as network management and spam prevention. Oracle is a smart contract service that allows data received from the outside world to be used in the blockchain. With the use of the Oracle system, there are opportunities in which a certain level of income is provided to the holders of Spark tokens (FXRP).
On December 12, XRP holders will receive Spark tokens (FXRP) at a 1:1 ratio at the time of the snapshot. Thus, 100 billion tokens will be created. The exchanges that have agreed to take part in the upcoming airdrop of the Ripple-Spark (FXRP) hard fork are setting the exact time for the snapshot to happen.
Snapshot is the time when developers take a snapshot of the registry to duplicate and modify. And this happens with a specific block number. For the fanout process, the snapshot block number is important information to consider. The calendar date is only needed to determine the block number. If an investor wants to join after a fork or snapshot, they will not be able to get free coins.
How Does A Snapshot Take Place?
- Exchanges participating in the airdrop will shut down XRP wallets and markets at the appointed time.
- At the time of the snapshot, the XRP balance is recorded on the accounts of exchange users. For each XRP token held, a Spark hard fork (FXRP) is awarded.
- Once the number of Sparks has been determined, the XRP markets and XRP wallets are activated.
The final distribution of FXRP tokens from the airdrop will take place in the first quarter of 2021. The remaining Sparks from the distribution will go to Flare Networks Limited and the Flare Foundation.
If you are an XRP token holder on an exchange that does not support airdrops, you can initiate a withdrawal to your XRP Ledger account such as the XUMM wallet at XRP Labs.
How Much Will An XRP Fork Cost?
It is quite difficult to predict the possible cost of Spark (FXRP) since many exchange clients will receive it for free only due to the presence of XRP tokens on their crypto wallets.
The price of a forked coin is much lower than that of the token from which it originated. XRP is currently experiencing a big spike in prices, thanks in part to the announced Spark hard fork. And it is trading at $0.62.
The growth of prices is possible after the airdrop. This may be due to the new network's ability to deploy existing Ethereum applications to Flare. It also allows you to integrate the network into decentralized finance (DeFi).
Flare Network's new utility token, Spark (FXRP), is an important milestone for the crypto community that is driving the expansion of the decentralized finance (DeFi) space. If you are looking at investing in an XRP token, participating in an airdrop is a profitable investment in the promising growth of blockchain projects.