Polkadot pioneered the concept of a canary network in the crypto sphere. Canary networks are operational blockchains that are used as a testing ground for the mainnet. Polkadot used the Kusuma blockchain as a canary network. Such a network allows the developers to stretch the limits of the blockchain without worrying about the consequences.
Songbird is one amongst the handful of such ‘canary network’ projects currently active in the crypto world. Let’s discuss about the Songbird Network today.
Songbird is a blockchain with a limited token supply. It is built to test features on a related mainnet for the layer-1 protocol, Flare. Songbird uses a consensus protocol that doesn’t rely on mining or staking. The main priority of the Songbird Network is to test Flare’s architecture, F-Asset and FTSO’s functionality, and ensure the stability of the network before the actual launch.
Flare is the technology behind Songbird. It is a low-cost, highly decentralized smart contract platform with high scalability and a low carbon footprint. Flare offers two main products - Flare Time Series Oracles (FTSO) and F-Asset. FTSO uses a decentralized method to give external info to the network. F-Asset is a new token standard representing assets from another blockchain.
In the long term, Songbird will continue testing new features and adding updates on the Flare Network. Besides its core utility of testing the Flare Network, Songbird is getting its share of secondary utilities. Flare and Allianceblock partnership is taking place on the Songbird Network. Flare also launched a DEX FLareX on the Songbird Network.
SGB or the Songbird token is the native token of the Songbird platform. The SGB token has the same distribution ratio as the Flare (FLR) token. Besides being a native token, SGB can also be used to partake in the governance of the Flare Network and vote in the key decisions, including the addition of new blockchain compatibility or F-Assets.
SGB has a starting supply of 15 billion and a yearly inflation rate of 10%. It has a circulating supply of 9.98 billion tokens.
SGB token is trading at $0.062 today and is ranked outside the top 1000 cryptocurrencies by market cap. Due to its relatively low trade volumes, the coin is prone to frequent spikes in prices. However, it has managed to respect technical levels and oscillated between a trendline support and trendline resistance.
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Source: TradingView, Coinex
Today, it seems to be positioned to break resistance at $0.064. If this level is held, short term targets of $0.068 and $0.072 are possible. However, if the market continues to be bearish, it may revisit $0.61 and lower.
Songbird recently got listed and got off to a good start in September 2021. But as the Flare Network is gearing up for its launch, the prices of the SGB token have been plummeting.
Despite the slump, Songbird is a crucial step for the entire crypto industry that is helping tokens on networks without smart contracts. It enables the tokens to be used trustlessly and in a non-custodial manner with scalable smart contracts. While the token continues to show bearish signs, we can expect the SGB token to gain momentum as further utilities are added to its network beyond its ‘canary in the mine’ job.
Until it becomes a part of the top 500-1000 crypto lists, SGB will continue to be a high risk investment.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.