Flow Blockchain is a fast and decentralized blockchain that realizes unprecedented scalability for the development of next-generation games and decentralized applications. It is based on a new architecture that makes the blockchain scalable without sharding. The smart contracts are put together as individual Lego blocks to control dApps that can reach billions of people in this way. Discover the new technology of Flow blockchain here.
- 1 Origin Flow
- 2 How does Flow work?
- 3 Benefits Flow Blockchain
- 4 $FLOW
- 5 Which NFT Projects Use Flow Blockchain?
- 6 Team
- 7 What is the price of the FLOW token?
- 8 Where can you buy the FLOW token?
- 9 Conclusion
In 2017, CryptoKitties, a blockchain game, was launched on the Ethereum blockchain . Through this dApp, enthusiasts could buy, collect and even breed with their favorite virtual cats. Dapper Labs, the Canadian developers, wanted to use the blockchain technology for in-game applications and use this technology for entertainment and recreation. And with success.
These virtual cats became very popular and attracted a lot of people to the Ethereum blockchain. The hunt was on. But with this rising popularity, it immediately became clear what obstacles the Ethereum blockchain had. The blockchain was overloaded and soon ran into problems with scalability and extremely high gas fees that caused enthusiasts of these CryptoKitties to decide no longer to invest or trade with their virtual cats. We still see this problem coming back years later and does not make Ethereum the strongest blockchain for collecting and trading NFTs.
The Flow blockchain was launched in 2020. This also by the Dapper Labs, the company behind CryptoKitties. Flow offers developers the opportunity to build dApps on the blockchain in a scalable and efficient way to enable large-scale trading of NFTs.
How does Flow work?
Flow blockchain comes with a new structure to realize the scalability for these dApps. We see that sharding is often used to make transactions scalable. This is a method in which the transactions are distributed over the network. Instead of having all nodes check and verify one transaction, several transactions are distributed over a group of nodes. This allows more transactions to be validated.
The Flow team deliberately chooses not to use sharding because this would be detrimental to the so-called ACID transactions. It stands for atomic, consistent, isolated and sustainable transactions. By no longer guaranteeing these, building dApps becomes much more difficult.
The interaction between the smart contracts would be hindered and this would even cause a delay in the communication of the network and an even higher chance of transaction errors. This combination limits the number of applications that are possible on Flow’s network. If we apply this to CryptoKitties, we see that with sharding, the purchase of one NFT element requires no less than 12 transactions that are distributed on 7 different blocks. In an ACID compliant environment such as Flow, trading and verification can be done in just one block. This allows many more transactions to take place and scalability is no longer an issue.
To ensure both decentralization and network security, Flow uses a new technique called pipelining. This is a method of scaling productivity by separating the tasks of a validator node into four different roles. This is also known as a multi-role validator node architecture.
The separation is vertical, which means that this separation is visible across the different validation stages in every transaction. If we look at sharding, this separation is horizontal and thus across different trades. This vertical separation allows nodes to specialize and work more efficiently for their specific phase.
- Consensus : These nodes determine the presence and also the order of the transactions on the blockchain.
- Execution : These perform the calculations associated with each individual transaction.
- Verification : They are responsible for verifying the execution nodes.
- Collection : These nodes improve the connectivity of the network as well as the data availability for the different applications.
Smart contracts Cadence
Where Ethereum uses Solidity as a programming language for the implementation of smart contracts, Flow has its own smart contract programming language called Cadence. Unlike other programming languages, this is the first resource-oriented programming language. This means developers can easily share different resources and thereby design complex smart contract solutions that are secure and scalable. Cadence achieves all this with minimal risk because these smart contracts can be checked easily and cheaply via Cadence.
Benefits Flow Blockchain
Large number of transactions
Flow originated as a new blockchain to achieve scalability when trading NFTs and dApps such as CryptoKitties, but also other games. According to the team, Flow’s current structure can support as many as billions of transactions in a secure and efficient way.
Sharding has been used in the past by other blockchains as a possible solution to this scalability. However, they often entail unnecessarily complex issues because synchronization between the different shards is of course essential.
Easy use developers
Upgrade smart contracts
Smart contracts were initially launched so that they could no longer be changed. This is to instill confidence that no one, not even the author, could change this code after launch. The problem, however, is that software is never perfect. There are several examples where smart contracts were implemented that were not sufficiently efficient. This can lead to a loss of confidence, but this is also an expensive affair.
That is why developers have repeatedly expressed their wish to be able to modify smart contracts, even after launch, in order to solve specific problems or simply update them. By realizing this, they give different developers access to modify these smart contracts, which creates a great complexity where trust of smart contracts can be damaged.
By launching smart contracts in a beta state, the source code can be modified incrementally by only the original author. Users are hereby notified when a change will occur and that this contract is still in beta status. This gives users the freedom to choose whether or not to use this smart contract. This allows developers to adapt and optimize the source code for a certain period of time.
Flow is the native token of the ecosystem and the blockchain. It is used, among other things, as a transaction cost, where these costs are minimal compared to the gas fees you pay in the Ethereum network. In addition, it is used in all dApps created within the Flow ecosystem. Investors who own FLOW tokens also have governance and can vote on the future of the protocol. FLOW tokens are mainly used for the following:
Different use case
FLOW is therefore the native currency for these dApps, games and smart contracts that are built on the Flow blockchain. This implies that developers will use these tokens to participate in transactions on the network. This is how they build this native token in the protocol, which developers and users all pay with FLOW tokens.
The team has opted for a secure and sustainable distribution strategy in order to get the FLOW tokens in the hands of the right people. This is crucial for decentralization and long-term success. When they centralize or regulate this distribution, there is a chance that developers are less likely to find the way to implement and build smart contracts on the network.
The goal is that Flow will act as a catalyst of the network, bringing together all the communities established on the network to create and share value.
There are a total of 1.36 billion tokens available. The token distribution takes place in different phases, in which phase 2 a number of tokens remain locked for a period of one year. This is to regulate the distribution. During the launch of the genesis block, a conscious choice was made for the following distribution:
Proof of Stake
Flow’s blockchain uses the Proof of Stake consensus algorithm to secure the network and complete transactions. Users are rewarded for this using FLOW tokens. The amount of this reward depends on the role and type of node in this pipeline architecture.
It is of course essential that all roles receive sufficient attention and that the ratio of these validator nodes is balanced. Therefore, the protocol automatically adjusts these rewards in order to increase the payout in this way. This is an incentive for users to deploy their FLOW tokens for certain nodes that have less activity than others. Is there balance again? The compensation will then be adjusted again. In this way, the ecosystem remains in balance and maintains its efficiency.
Which NFT Projects Use Flow Blockchain?
CryptoKitties is still popular, but due to the use of the Ethereum blockchain, these purchases come with high transaction costs. Since the launch of Flow, users can still access their CryptoKitties through Ethereum’s network, but can also transfer them to the Flow blockchain for lower transaction costs.
NBA Top Shot
In September 2020, the mainnet beta went live with NBA Top Shot as the first partner. This is a huge NFT platform for NBA fans. Fans can invest in ‘Moments’. These are short video clips of some of the best NBA moments. So these fragments are NFTs and have only one owner, which only increases the interest from superfans.
NBA legend James LaBron managed to raise an amount of no less than $ 47,500 with his own dunk moments. After this peak, Another Moment sold for over $71,000. Earlier in 2021, the NBA Top Shot platform had a revenue of more than $370 million, demonstrating the popularity of the platform that is fully operational on Flow’s blockchain.
FLOW was founded by Dapper Labs, the same team that launched CryptoKitties. Dapper Labs is currently led by founder Dieter Shirley who is also CTO as well. He is assisted by co-founder and CEO Roham Gharegozlou.
Roham has a bachelor’s degree in economics and an additional master’s degree in biological sciences from Stanford University. Before his adventure at Dapper Labs, Rohan was founder and CEO of Axion Zen . This is an innovation studio that helps to launch startups. That’s how they created and launched Dapper Labs.
Dieter Shirley was co-founder of CryptoKitties and one of the authors of the ERC-721 tokens on the Ethereum blockchain. This is an umbrella term for NFTs such as CryptoKitties. Before his adventure at FLOW and CryptoKitties, Dieter was also active at Axiom Zen, as Chief Architect.
What is the price of the FLOW token?
If you want to invest in the FLOW token, a good start is to know its price. If you are already going to trade, you also want to make a profit. You can make a technical analysis to see what the best buy or sell moment is.
The FLOW token was withdrawn from CMC on January 27, 2021 at a price of $8.30. Within half a year, this token has already reached its preliminary ATH on April 5, 2021 with a price of $46.16. After that, the price fell again quite quickly and between May 2021 and Jcune 2021 the price was low with mainly red numbers. With the lowest quoted price at $1.5125. Then the price regained a more positive momentum and rose to USD 25.64 in September 2021. At the time of writing, early October 2021, the price is $18.97.
At CoinMarketCap , it is just within the top 100 in place 85. I think this coin has a good prospect, especially if Bitcoin continues to rise in 2021. I think it could experience a good price development. If you want to invest in this coin, it is important to do your own research.
Where can you buy the FLOW token?
The FLOW token is for sale on Bitvavo . Bitvavo has included this coin in its offering at the beginning of September 2021. Most leading CEXs also offer this coin, such as Binance or Gate.io. There are also many liquidity pools on DEXs like Uniswap where you can find a FLOW pair. If you live in the Netherlands or Belgium, Bitvavo is a very convenient option. You can click on the widget below and you can immediately buy the FLOW token.
In the blockchain trilemma, scalability still proves to be difficult and many blockchain projects are working to realize this. A commonly used solution for this was sharding, but according to FLOW this is insufficient to guarantee unprecedented scalability. Thanks to their unique pipeline architecture, the Flow ecosystem realizes this scalability. This allows developers to quickly and efficiently build decentralized applications (dApps) in which FLOW is the engine for the ecosystem.
By using upgradable smart contracts, these smart contracts will also receive a timely update, so that they will work optimally in the ecosystem. These only become immutable when implemented on the alpha version of the network.
All transactions of applications are done through the native token of FLOW. As a result, this currency will be traded more frequently and it also gives you governance. With your native tokens you help determine the further developments of the Flow ecosystem.
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com