Introduction to Flare: The Blockchain for Data

By Adriana Hamacher

Today’s top apps, like Instagram and Apple Music, run on vast data streams and powerful processing that blockchains can’t yet match without compromising decentralization. As a result, decentralized apps (dapps) are forced to either compromise on their feature set, or leverage oracles that rely on centralized off-chain data streams.

Flare introduces a new approach, incorporating data oracles into its blockchain, so that the data is provided by the validators who secure the network. This integrated model uniquely addresses existing oracles' cost and security, while meeting the growing demand for decentralized data.

By “enshrining” oracles directly onto the blockchain, Flare tackles the limitations of current data solutions head-on.

What is Flare?

Flare is a blockchain that natively “enshrines,” or integrates, data oracles into its core, Layer-1 architecture.

Flare is Ethereum Virtual Machine (EVM) compatible, making it easy for developers to build on the network, and, unlike other Layer-1 blockchains, it combines both data provision and staking-based network security into one role with a single token, FLR.

What problem is Flare solving?

Data powers almost all of the current and future use cases in blockchain, so oracles perform a key function: connecting real-world, off-chain data to decentralized networks. Yet, Flare argues, conventional oracles often fall short due to centralization, failing to deliver the secure, reliable data dapps need.

Today’s oracles collectively secure tens of billions of dollars across dapps, providing data for smart contracts in decentralized finance (DeFi), gaming, and more. However, today’s oracles “have limited data, are expensive to use, and because each feed has a variable level of security, they create a complex developer experience,” says Flare co-founder and Flare Labs CEO Hugo Phillion.

To secure data, centralized oracles rely on economic incentives for data providers and “restaking,” which uses tokens from primary blockchains (like Ethereum) to secure secondary services, such as oracle nodes or bridges.

However, these approaches can compromise transparency and increase risk, as penalties for dishonest behavior or network issues can impact multiple layers of services reliant on the same staked tokens.

How does Flare’s model differ from other oracles?

Flare is unique in “enshrining” oracles directly within its Layer-1 infrastructure, meaning that its data services are part of the core protocol itself. This measure aims to reduce dependency on external staking to secure oracles, contrasting with systems that employ restaking and those that rely heavily on off-chain entities or economic incentives.

Over 60% of circulating FLR is delegated/staked. By using FLR as the sole token securing data feeds, Flare provides consistent, on-chain protection for all data services, promising to simplify security and enhance overall reliability for developers.

How does Flare’s architecture work?

Flare’s native data protocols enable complex applications that need secure and reliable high-frequency data.

Flare has approximately 100 validators, each contributing to every data feed. This uniform approach ensures that all oracle data shares the same security guarantees, removing the need to assess individual risks.

The networks’ standout feature, the Flare Time Series Oracle (FTSO), supports high-frequency data updates for up to 1,000 types of price feed. It updates every block (roughly 1.8 seconds), and is designed to service applications that require real-time pricing data like DeFi trading platforms.

Meanwhile, the Flare Data Connector validates off-chain events from both traditional sources as well as Web3, enabling dapps to access real-world information. This expands Flare’s use cases beyond finance, into sectors like gaming and prediction markets, where verifiable, real-time data is essential.

Additionally, FAssets, Flare’s trustless bridge, unlocks new liquidity and use cases by bringing Bitcoin, XRP and DOGE onto the network, using over-collateralization for security.

What’s next for Flare?

With a growing ecosystem, Flare has around 150 partners including Google Cloud and LayerZero.

Flare is now looking at integrating off-chain compute capabilities, and extending its enshrined data services across multiple chains, with the goal of empowering developers to build advanced, data-driven dapps that rival Web2.

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