Flare Network is a distributed network that integrates the Ethereum Virtual Machine (EVM). The EVM basically converts smart contracts into instructions that computers can read – this enables the network to run Turing complete smart contracts. Turing-completeness means that it can run virtually any computational task, as long as there is enough memory to run it. This means it can combine some powerful properties to create an ecosystem of decentralized applications. In short, Flare aims to be a way to scale smart contract networks. Flare uses a consensus protocol called Avalanche, which has been adapted to work with Federated Byzantine Agreement (FBA). FBA is a consensus mechanism used by networks such as the XRPL and Stellar. We won’t get into the technical nitty-gritty here, but the bottom line is that Flare’s consensus algorithm doesn’t rely on economic mechanisms like Proof of Stake (PoS) to maintain the security of the network.

The FTSO provides externally sourced data estimates to the Flare Network in a decentralised manner. It does so by leveraging the distributed nature of the network and its participants. The oracle takes as inputs estimates from two sets of participants: Spark holders and relevant F-asset holders. At regular and prescribed time intervals (a governance parameter), participants from both sets may (but are not obligated to) submit to the system their current estimates.