What is Flow?

What is Flow?

Flow is a blockchain network that has been designed to facilitate the creation of NFTs, and host crypto-based videogames. The origin story behind Flow is quite interesting. In 2017, the massively popular NFT project called Cryptokitties caused the Ethereum blockchain to come to a halt. This abrupt halt was caused by a massive surge of traffic that came as a result of this project. The developers of Cryptokitties quickly realized that the current generation blockchains are not properly equipped to handle the congestion of popular NFT projects and games, Hence the idea of Flow was born.

Flow was designed to be highly scalable, without the use of extensive sharding techniques. Thus providing a reliable, fast, and low transaction fees platform, that would appeal to all developers who desire such a platform for their DApps. NBA Topshot which is an NBA-backed NFT trading card game is already operating on the Flow network, while Cryptokitties will soon migrate to the network as well.

Who created Flow?

Flow was created by Dapper Labs. It is the same company that created Cryptokitties, and more recently they are also the developers of NBA Topshot. When the whole Ethereum network came to an abrupt halt after high congestion caused due to the high traffic on Cryptokitties, Dapper Labs decided to find a solution. Instead of looking for alternative blockchains, or waiting for Ethereum 2.0, the decision was made to create their own blockchain network, that will be tailor-made for crypto video games, and NFT projects.

Flow was launched in 2020, and even though it’s a newcomer in a world that is seeing ambitious projects come up on a daily basis, it has still managed to gain massive popularity. Its poster boy, NBA Topshot has exceeded almost 3 million transactions, generating sales of over $500 million. Its rapid rise to popularity has seen interest from all corners, as deals have been signed with high-profile companies such as the UFC, CNN, and Dr Suess. Furthermore, Flow also has partnerships with Industry giants such as Samsung, Ubisoft, and Warner Music Group.

How it Works?

To understand how Flow works, it is important to understand the purpose behind its creation. Most of the DApps were initially launched on Ethereum and many of them still operate on it. However, despite being the pioneer of smart contracts, Ethereum has many flaws. Most notably the high gas fees, and congestion that is caused due to high traffic is not quite appealing to developers. Furthermore, as of now, Ethereum is a proof of work blockchain, which further complicates matters as it significantly increases the time in which a transaction is completed. Now all of these things undermine Ethereum’s suitability as a network that can host big projects like Cryptokitties which attract millions of people.

This is where Flow comes in, as it was designed specifically for high-end DApps, Crypto videogames, and NFT based projects. Flow is a proof of stake blockchain, which means that the network is secured and the transactions are confirmed by users staking their FLOW tokens on the network. By doing so, they get rewarded by the network for their services. However, what makes Flow unique is how its transactions are confirmed or validated. The whole process of validation is split among four different types of nodes. These nodes include consensus, verification, execution, and collection nodes. All four of these nodes participate in the validation of each and every transaction and each has its own unique functionality.

The Collection nodes are responsible for enhancing the connectivity of the network, and ensuring that all relevant data is available for the DApps. Consensus nodes deal with deciding the presence of a transaction, and if certain transactions exist then they decide the order of the transactions. Execution nodes, as the name indicates are responsible for executing the computational aspects of each transaction. These nodes are just for executing the transaction, and have no decision-making abilities. Finally, the verification nodes are responsible for verifying or double-checking the work done by the execution nodes.

According to the team behind Flow, splitting up the different tasks like this actually makes the network much more efficient than rival blockchains. Unlike its contemporary proof of stake blockchains that use sharding, as a means of reducing the load on the main chain, Flow splits up the tasks into different nodes all having different functionalities. Their team claims that transactions on Flow are atomic, consistent, isolated and durable, (ACID).

What is FLOW Token?

FLOW is the native crypto asset of the network. Its primary use is the transfer of value across the blockchain. Secondly, as Flow is a Proof of stake blockchain, therefore the validators are required to stake their FLOW tokens, in order to earn rewards which are also paid out in the form of FLOW. Eventually, the plan is to make FLOW the governance token of the network. This will allow holders of the token to vote and decide the future of the network. In June 2021, Dapper Labs also launched FUSD on Flow. It is a US dollar-backed stable coin, which is backed exactly on a 1:1 with US dollars that are deposited at financial infrastructure provider Prime Trust.

Concerns

Flow is one of those ambitious new blockchains that are trying to solve the blockchain trilemma. Even though that isn’t their major claim to fame. The primary purpose of Flow has always been to provide a network that is suitable for large NFT projects and Crypto-based Videogames. However, it faces stiff competition from other blockchain projects that are trying to provide the same solutions albeit in their own ways. Most of the contemporary projects use sharding as their primary mechanism to solve the problems of scalability, security, and decentralization. However, Flow is different, as it relies on different kinds of nodes executing different functions. Therefore it is now a competition of not only trying to be the best but also about which method is the best to achieve a network that can solve the blockchain trilemma. Whichever network succeeds will surely attract the most developers to it, and may signal the end for its competitors.

Where to buy FLOW?

FLOW can be purchased on major crypto exchanges like KuCoin — similar to how one would buy any other cryptocurrency. You can either place a market buy or a limit buy. With a limit buy, you determine the price you’re willing to pay, and your order gets filled once the token price reaches your set limit price. If you want to get your hands on the token quickly, you can place a market order, where you agree to pay the current market price and have your order filled almost instantly. If you are interested in trading FLOW, you can do so by visiting KuCoin.

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Text source: CryptosRus

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