Flow is one of the many networks that have been built to solve the Ethereum scalability issues. Along with hosting the popular Web3 game Crypto Kitties, Flow also supports multiple decentralized applications (DApps). Flow’s early success is a clear indication that it has a role to play in promoting the adoption of blockchain technology. This guide discusses all the aspects of the Flow blockchain, so keep reading to learn more.
What’s the Flow Blockchain?
Flow is a PoS (proof-of-stake) blockchain built to support NFT-powered games and applications. The network aims to onboard several traditional companies to Web3 in the coming months.
The History of the Flow Blockchain
In November 2017, prominent game studio Axiom Zen released an NFT-based game called Crypto Kitties on Ethereum. A month later, the game had grown in popularity, causing huge traffic on the blockchain. As a result, transaction speeds became slow, and network fees spiked significantly.
To address these problems, the Crypto Kitties developer created Dapper Labs, a crypto firm formed to build the Flow blockchain. In 2019, Dapper Labs published a white paper explaining the roadmap of Flow. A year later, the blockchain launched, processing more than 450,000 transactions a day.
As of this writing, over 20 million accounts have been created on the Flow blockchain.
The Flow Team
Axiom Zen’s founder serves as the CEO of Dapper Labs, while Mikhael Naayem is the President of the crypto company. Naayem has been a board member of Axiom Zen since 2012. Dieter Shirley is another key Dapper Labs team member. The former Axiom Zen’s Chief Software Architect serves as Dapper Labs’ Chief Technology Officer.
How Does the Flow Blockchain Work?
To improve throughput and speed, Flow is split into four types of nodes, including execution, collection, verifier, and consensus nodes. All these nodes are involved in the transaction validation process, each serving different purposes. Here are the functions of each node:
Collection nodes: They receive transaction requests from various external clients and then add them to the chain.
Consensus nodes: They form blocks from transaction submissions received from collection nodes.
Execution nodes: These are involved in computing the outputs of blocks formed by consensus nodes.
Verifier nodes: These nodes verify the computation conducted by execution nodes and generate a ‘result approval’ report.
Benefits of Flow
This network’s unique architecture is helping to solve the scalability problems experienced in most blockchains. At Flow, you can expect quick and cheap transactions.
Along with that, Flow has set aside more than $700 million in development funds to promote innovation within its ecosystem. The funds were raised by popular crypto venture capitalists, including CoinFund, Digital Currency Group, and Andreessen Horowitz.
Further, the technology used to create Flow makes the blockchain user-friendly for developers looking to build Web3 projects.
Flow Coin
The Flow blockchain has its native token known as FLOW. It is used to pay gas fees, and its holders can stake it to earn yield. According to a recent Dapper Labs announcement, FLOW will soon serve as a governance token when the firm launches a Decentralized autonomous organization (DAO).
FLOW Tokenomics
Initially, Dapper Labs released 1.2 billion FLOW tokens. That figure has grown by more than 160 million as of July 2023.
Those looking to earn passively using their FLOW tokens can stake them on Flow to receive an 8.5% annual percentage yield.
How to Purchase the FLOW Token
Several top crypto exchanges support the trading of FLOW. Here is how you can buy it on Coinbase:
Step 1: Create or log in to your Coinbase trading account.
Step 2: On the “homepage,” click the buy/sell button. Now select the fiat currency you want to use to purchase FLOW. It could be Euro or USD.
Step 3: Enter the amount you wish to spend and then connect your debit/credit cards.
Step 4: Click “Buy Now” to approve the purchase.
Step 5: Check the balance in your wallet and transfer your tokens to a decentralized wallet to ensure you have total control over them.
Conclusion
With the ability to process over 450,000 transactions daily, the Flow blockchain is likely to witness massive adoption soon as crypto users continue to seek networks that provide scaling solutions.
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