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You might be curious about what exactly Flow is and why this blockchain and its native asset have caught the attention of many.
In this article, we will be going over the Flow blockchain, its native asset, FLOW, and their potential benefits.
The History of Flow
Flow is a proof of stake (PoS) blockchain, created by Dapper Labs, tailored for large scale crypto games and NFT collectibles.
Dapper Labs is the company behind CryptoKitties, which was one of the first major games that used blockchain technology operating on the Ethereum network. This game attracted such a large number of users that it resulted in significant congestion on the Ethereum network, subsequently causing issues and disruption for users involved in the game.
Due to this problem, the developers at Dapper Labs decided to build a new blockchain to house decentralized applications (dApps).
This marked the inception of Flow.
How Does Flow Work?
Since Flow is built on a PoS blockchain, it requires validators to stake a specific amount of FLOW to participate in the network. But the validation process with Flow is unique compared to other PoS blockchains.
It engages in a multi-role architecture that’s designed for separating the jobs of a validator node into four different roles.
- Collection Nodes: Amplifies the network connectivity and ensures data accessibility for dApps.
- Consensus Nodes: Responsible for determining the existence and sequence of transactions on the blockchain.
- Execution Nodes: Carries out the computations associated with each transaction.
- Verification Nodes: Maintains the accountability of the Execution Nodes.
This architectural validation design enables each validator node to participate in the verification process of each transaction, but they only work on specific stages of validations. Therefore, this unique structural blockchain empowers the network to scale much higher throughput and significantly reduce expense while ensuring a shared execution environment for all tasks conducted on the network.
The Native Asset FLOW:
FLOW is the native asset of the Flow blockchain network, applicable across apps, games, and smart contracts. It is the exclusive token for staking, delegating, paying transaction fees, and paying storage fees. Importantly, developers can embed FLOW into their dApps as the main currency for payments, transactions, and earning rewards.
Those in possession of FLOW have the chance to accumulate additional rewards through staking or by initiating a validator node to safeguard the Flow blockchain.
For those not inclined to establish a node themselves, they can delegate their holdings to operators who can harness these assets to operate validator nodes.
In recognition of their role in providing network security, these validator nodes gain rewards and transaction fee proceeds.
Why People Like Flow & FLOW:
People show interest in this blockchain and asset because of the impressive roster of brands that Flow has partnered with. Key collaborations include the NBA, Samsung, and Ubisoft, among others.
This has caught the attention of those keen on developing further projects on blockchain platforms, particularly the Flow blockchain. Such projects could intersect with digital art, games, music, and a host of additional assets.
If you’re looking to buy and sell FLOW, you can do it with the benefits of a tax-advantaged crypto IRA at iTrustCapital!
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