What Is Flow Blockchain (FLOW) How It Works & Where To Buy It?

Flow is a powerful and developer-friendly blockchain that has recently become one of the most popular cryptocurrency projects. The team behind the Flow blockchain are the founders of CryptoKitties – one of the most successful NFT (non-fungible tokens) projects to date.

FLOW token has quickly grown to become the 53rd largest cryptocurrency in the world by market capitalization.

How FLOW Works

Flow blockchain was created by Dapper labs in 2019. The blockchain implements smart contracts that are integral to the functionality of the Flow network.

Flow aims to be the go-to blockchain that is catered to businesses to deploy applications as well as grow their user base. The nominal transaction fees and excellent UX experience positions flow as a leading project to pioneer the development of gaming, applications, and digital assets.

Flow’s scalability is achieved through innovative systems and is devoid of sharding techniques that typically plague blockchains’ potential to scale. Essentially, Flow is focused on streamlining and simplifying blockchain, and reducing the complexity and unnecessary systems that affect the user experience negatively.

The aim of the project is centered around usability, simplicity, and sustainability – curating a simple user experience is necessary to increase user adoption.

While many blockchains still utilize proof of work consensus algorithms that have historically failed to meet demand – Flow implements a unique system that is reliant on various node types to achieve efficient scalability.

The Flow node architecture comprises the following main node types:

Collection nodes – The nodes are tasked with the management of the transactions pool, collecting well-formed transactions. Upon the collection of a well-formed transaction, the text is hashed off by the node and signed.

Consensus nodes – The primary role of consensus nodes is to allow the network to reach a consensus on the sequence and credibility of transactions to be processed.

Execution nodes – The primary task of execution nodes is to facilitate the execution and computation of transactions.

Verification nodes – The role of verification nodes is to determine the credibility of execution nodes. A single honest verification node can punish bad actors/dishonest execution nodes.

The division of nodes helps Flow achieve enhanced efficiency and scalability – an integral requirement for the success of a blockchain.

What Is Flow Used For?

Flow is catered to developers and participants seeking to engage with the NFT market and gaming sector. The Flow network and ecosystem are pioneered by Dapper labs – the founders of NBA top shot, a digital collectible and moments series which has already generated billions of dollars.

Essentially, developers will be able to build on the Flow blockchain and benefit from the security and efficiency of the network – they also have the option of creating a custom cryptocurrency on the Flow blockchain.

Flow tokens essentially power the ecosystem and the Flow network; this can be likened to the role most native tokens play in their network. Additionally, Flow stakers receive additional incentives like airdrops and rewards which are calculated proportionate to staking length and number of Flow tokens.

There are several centralized exchanges that offer a variety of Flow staking options, each with differing APY %.

Where To Buy Flow Tokens

Flow tokens are available on most cryptocurrency exchanges. And Flow saw its highest trading volume to date in July 2021, with 24-hour trading volumes exceeding $420 million.

When it comes to using crypto exchanges, some of the most popular used by US traders are:

1. Gate.io
2. HTX
3. KuCoin
4. Crypto.com
5. Gemini

Be aware that Flow wallets are essential for Flow holders seeking to participate in the Flow ecosystem. Individuals will need to transfer tokens from the exchange to a Flow wallet.

Facts About Flow (FLOW)

How long has Flow (FLOW) existed?

Flow was initially introduced by Dapper Labs in 2019, and the FLOW ICO on Coinlist raised more than $18 million. The Flow team is a group of experienced individuals with high hopes of accelerating blockchain adoption through their platforms.

The Flow price during the ICO on Coinlist was $0.10 per Flow token. Once the Flow token was listed on public exchanges, it was listed at $6.

The FLOW cryptocurrency has seen significant price volatility since its listing, reaching an all-time high of $39.04 on the 4th of March, 2021.

What’s controversial about Flow?

There are an exponential number of projects entering the crypto space. Unfortunately, not all projects are equal and credible – it’s essential to do research on any project before investing. Research the project’s founders, partners, history, as well as any other important factors associated with the project.

Below let’s take a look at the biggest controversy surrounding Flow:

• Circulating Supply – After Flow’s ICO, the price rocketed to almost $40 over the next few months. However, what was clear to many retail investors was the agreement participants had with Coinlist when purchasing Flow tokens in ICO.

  Essentially, $18 million worth of Flow tokens were sold during the ICO, and users’ tokens would be locked up for a year, where they would then receive 50% and then a linear release of the other tokens. This was a lucrative way to keep the circulating supply low, which sent the token price rocketing but what came next was a blow.

  The general market only saw the price appreciation of Flow, unknowing of what was to follow in the next few months after lock-up periods from the ICO ended. The token was trading at nearly $40 but plummeted to under $5 after a massive amount of tokens came into circulation after lock-up periods ended.

  Still, only 25% of flow tokens are actually in circulation. This is typically indicative of a further decline in token price because the asset becomes less scarce when a magnitude of tokens are released into the market.

How many Flow tokens are there?

At the time of writing, FLOW has a circulating supply of 364,061,129.00 FLOW.

The total supply of FLOW is 1,372,066,760 FLOW.

Can Flow be mined?

Flow is not a mineable cryptocurrency. Unlike Bitcoin and Ethereum which use proof of work consensus algorithms, Flow instead uses a proof of staking consensus mechanism.

Any individual can participate as a node in the network. Rewards are distributed according to the number of Flow tokens the individual holds, as well as the duration tokens are locked up for when staking Flow tokens.

Some centralized exchanges also offer staking rewards for users who lock up their Flow tokens for a duration.

What is the market cap of Flow (FLOW)?

You can work out the Flow market cap by multiplying the total amount of coins in circulation with the current market price.

FLOW Market Cap = 364,061,129.00 FLOW x $4,48 = $1,63 billion. (53rd largest cryptocurrency by market cap).

Biggest Competitors Of Flow Network And FLOW Token

Flow blockchain has established itself as one of the most promising projects in the crypto space. The project has pioneered scalability, efficiency, and influential partnerships.

Some of the most notable investors and partners of Flow are UFC, Google, Samsung, Warner Music Group, and LaLiga. Flow’s full list of partners can be viewed here.

Even though the project has seen a lot of success it’s not the only project in the crypto space that is aiming to provide specific solutions.

Flow positions itself towards being a developer-friendly blockchain that is focused on NFTs, gaming, and providing a simple and seamless blockchain experience for users.

With these aims in mind, FLOW’s top competitors are:

• Cosmos
• Solana
• Ethereum
• Polkadot

From a cryptocurrency token perspective, FLOW is not one of the top 50 cryptocurrencies by market cap. However, token price appreciation will likely lead to more hype surrounding the project, which will potentially bolster user adoption.

What Are The Future Plans Of Flow Network And FLOW?

Flow continues to expand on its smart contracts, incorporate resource-oriented programming and grow the number of user accounts.

The successes of NBA top shot and the most recent launch of a licensed Beijing Winter Olympics game are clear indications of the strides the project is taking in the crypto space.

Flow blockchain has also been described as the world’s fastest-growing blockchain, amassing more than 2 million users in only its first year.

The Flow blockchain will likely continue to attract more users and garner more credibility in the blockchain space. The team has announced its intention to become one of the most influential projects in the crypto space – increasing blockchain adoption through their platforms.

Pros And Cons Of Flow Network And FLOW Token

Pros:

• Flow blockchain is the fastest-growing blockchain – Flow blockchain managed to amass more than 2 million user accounts within its first year of being live.
• Transactions per second – Flow is both scalable and efficient – currently, the network can process 1,000 transactions per second and is actively working on increasing this to 10,000.
• Scalability – Flow doesn’t use any sharding techniques, instead, there is an innovative 4-node type system that Flow incorporates. Flow smart contracts also play an integral role in the network’s efficiency.
• Partnerships – Flow has an impressive list of partners including NFL, NBA, Google, Samsung, and LaLiga.

Cons:

• Circulating Supply – Only 25% of Flow tokens are in circulation. This is why the token’s price appreciated so drastically, as a result of positive news and increased demand while supply is low. This can be seen as an inaccurate price valuation for the project – as more tokens enter into circulation it will negatively affect the FLOW token price.