Brief Meaning and Functions of Smart Contracts
Smart contracts are made to function in the semblance of contracts written on paper, except they are processed without using an arbitrator.
Smart contracts can also contain specified terms that are written in code and digitally stored on a distributed ledger. As long as the conditions of the agreement are duly followed, transaction, such as payment, is effected and irreversible.
According to the co-founder and CEO of Flare, Hugo Philion, the Coston testnet is purposely made for two important goals. “1) As a testbed for developers that want to utilize Flare with XRP to develop and test applications before risking actual value. 2) To test various functionality and smart contracts that will form the core utility of the Flare Network.”
Xpring Investment in Flare
Back in November 2019, it was announced that Flare received an investment from Ripple’s fundraising and development arm, Xpring. There, it was stated that Flare will enable smart contract capacity for the XRP Ledger.
The report reads:
“Flare’s native token will be an algorithmic stablecoin created in part by burning XRP, and payments for a contract can be made and received in XRP via Interledger, which will be integrated with Flare.
Flare will also use the XRP address and encryption system to provide XRP users with a virtually seamless way of interacting with smart contracts on the Flare Network.”
The Purpose of the Investment
According to Ripple, the investment would enable developers to leverage the XRP Ledger in different ways, which would aid the adoption of the digital token XRP beyond the world of payments.
Conclusively, Hugo Philion stated that the firm will start preparing for the XRP integration in the coming quarter.