In the past several years, many projects have been initiated to enhance the capacity of blockchains to communicate with one another. The Flare Network will be one of the upcoming developments in this sector. This new blockchain takes the preliminary testing process very seriously and places a test chain called Songbird (SGB) at the center of its launch activities.
What Is Songbird (SGB)?
SGB is a necessary component to test the Flare ecosystem's governance-led functions. SGB is Songbird's internal cryptocurrency token. Both the user community and the Flare Foundation, a nonprofit organization based in the Netherlands that is in charge of the project, have the potential to be the originators of governance concepts for Flare.
If, on the other hand, the user community puts forward a suggestion, it must initially go through the voting procedure on Songbird. At this point, holders of SGB coins will decide. If the vote is successful, the proposal will proceed to the following level: further voting and consideration on Flare.
Modifications suggested by the user community and voted on using Songbird pertain to the actual Flare blockchain and have nothing to do with Songbird itself. If the modifications are implemented on Flare, a copy will be made on Songbird to be tested.
In addition to its usage for governance, the Songbird Governance Blockchain (SGB) may also serve as a testing ground for Songbird's core applications and services, including the FTSO, State Connector, and F-Asset systems. Those who are interested in using the Flare network can test out the services without the danger of losing their FLR coins while simultaneously earning SGB coins through this method.
For instance, Oracle data suppliers in FTSO are eligible to get awards for their participation in the game. SGB holders can delegate coins to the data providers of their choice to increase their voting power and earn a portion of the rewards given out to the data providers.
How Does Songbird (SGB) Work?
While Songbird serves as the canary network for the Flare blockchain, the two systems function equivalently. Yet, it is essential to note that these blockchains are separate entities, each with its native cryptocurrency.
The primary objective of Songbird is to connect blockchains to smart contracts that were not previously compatible with one another.
Several developers successfully accomplished this goal using various techniques, including bridges and custodial smart contracts. To "wrap" an asset like Bitcoin into an Ethereum-compatible token called wBTC so that it may be used in applications that are based on Ethereum is one example of a custodial smart contract.
wBTC stands for "wrapped Bitcoin." But, for a wrapped cryptocurrency to function properly, there must often be a centralized reserve of the base currency, which in this case is bitcoin.
Songbird can bridge incompatible cryptocurrencies to smart contracts without the need for a centralized pool of reserves. This allows it to sidestep some of the security risks that are associated with crowding the funds that are used to back a wrapped token under the control of a single entity.
Is the Songbird (SGB) a Good Investment?
The eventual outcome of Songbird will be determined to a considerable extent by the type of canary network it matures into over time. After the advanced testing is finished and the Flare ecosystem operates at total capacity, it may fall into obscurity.
On the other hand, similar to Kusama and Polkadot, Songbird might continue to thrive and create its own distinct and abundant environment despite Flare's influence.
How to Buy Songbird Crypto?
CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including SGB, users can now trade easily and seamlessly. To purchase SGB on CoinEx, follow the steps below.
- To access CoinEx's services, register for an account by clicking "Register". Existing users can log in.
- After logging in, deposit funds into your CoinEx account using one of the supported cryptocurrencies or deposit methods supported by the exchange.
- After depositing fiat or cryptocurrency, go to the SGB trading page, choose a trading pair, and specify the amount of SGB to purchase.
- To buy SGB tokens, choose the appropriate trading pair, specify the desired quantity of SGB, and trade the paired token for SGB.
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