Problems with cross-chain data
Most blockchains lack native means to verify events on other networks. Smart contracts on one chain cannot confirm whether payments on another chain are completed, so cross-chain activities have long relied on bridges and trusted intermediaries.
Flare Network takes a different approach, bringing verified external data directly onto the chain through its Flare Data Connector (FDC).
According to Flare's developer documentation, FDC is a built-in oracle specifically used to verify the external data needed to verify Flare's EVM status, allowing smart contracts to use certified information without relying on users to ensure data integrity.
How a data connector works
The process begins when a developer submits an authentication request for an external event. The event can be a payment on the XRP ledger, a $BTC or a $DOGE transaction, or it can be data returned by the Web2 API. Flare's independent data providers each independently verified the event and merged the results into a consensus result.
Once consensus is reached, the verified data will be stored on the chain in the form of Merkel roots. Authentication requires a data provider signature weight of more than 50% to ensure decentralized consensus and only store Merkel roots to reduce costs. Any smart contract can use this certificate to convert external events into on-chain inputs without trusting the person who originally provided the data.
Together, FDC and Flare's Time Series Oracle (FTSO) form what Flare calls the most advanced and fully decentralized data protocol, allowing the network to quickly and securely access price data, Web2 data, and blockchain data.
This architecture also supports a broader development roadmap. Combining FTSO and FDC, applications can be built on Flare to leverage price data, process data from other blockchain or Web2 sources, and execute transactions on Flare's interconnected chain.
FAssets: Practical application of data connectors
The most specific application of this infrastructure is FAssets-Flare's introduction of non-smart contract tokens into DeFi's system. With FAssets, assets that would otherwise not be available for smart contracts can be used in programmable markets: transactions, lending, vaults, pledges, and cross-chain financial applications.
Flare has launched FXRP, a packaged version of XRP that can be used in DeFi applications and is the first implementation of the FAssets system. The system converts non-smart contract tokens such as XRP into overcollateralized assets to interact with the DeFi protocol. Flare plans to expand FAssets to $BTC and $DOGE, bringing more non-smart contract assets to its ecosystem.
In the first seven months after launch, more than 155 million FXRPs have been forged, with the majority of the supply already actively deployed in DeFi.
Data connectors are at the heart of this process. The FDC verifies the underlying transaction, and then the corresponding FAssets are minted on Flare in the form of ERC-20 tokens. The resulting system builds cross-chain applications based on verification events rather than just relying on bridges.

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