What Is Flow?
FLOW is the native token of the Layer-1 blockchain that goes by the same name. The Flow network is meant to serve as a foundation for a new wave of digital products, including games, dApps, and crypto assets. Overall, Flow was created with mainstream users in mind. It provides a secure and frictionless process of switching from fiat to cryptocurrencies.
If you’re interested in the current Flow price, check out the FLOW price chart above.
The Flow network's distinctive multi-role architecture allows it to be scaled to support thousands of users without sharding or compromising the decentralization of consensus. It employs a four-node architecture, which, essentially, improves the transaction speed and lowers transaction costs.
The Flow network operates using the HotStuff algorithm which is a Proof-of-Stake algorithm variant. It’s a partially synchronous leader-based BFT replication algorithm. After network communication becomes synchronous, HotStuff enables a correct leader to push the protocol to consensus at the rate of the actual network delay and with communication complexity that is proportional to the number of replicas.
Besides, Flow also uses a brand-new cryptographic method called SPoCKs (Specialized Proofs of Confidential Knowledge). This method was created by the company's own research team. With SPoCKs, any number of provers can confirm to an outside observer that they all have access to the same private information.
Additionally, Cadence, a simple and secure programming language for crypto assets and apps, is used to create all smart contracts on Flow. Cadence uses a strong, static type system. It manages to uphold the desired behavior, thereby reducing runtime errors.
The Developers of Flow
The Flow crypto project was developed by Dapper Labs. It's a company that offers new digital engagement opportunities to worldwide users by employing blockchain technology. Other projects that were developed by Dapper Labs include Cryptokitties, NBA Top Shot, and so on.
Dieter Shirley is the founder and the CTO of Dapper Labs. Shirley is accompanied by Mikhael Naayem who is the CBO of the company.
Besides, Dapper Labs has quite a long list of partners from different spheres. This includes:
- Global IP brands (e.g., Warner Music, NBA, and others);
- Game developers (e.g., Sumo Digital, Animoca Brands, and others);
- Crypto projects (e.g., Binance, Opensea, and others).
The Purpose of FLOW Coins
FLOW is the native token of the Flow network. Essentially, it’s the backbone of the whole ecosystem. Overall, it has numerous use cases:
- FLOW coins are used to pay for the Flow network services like transaction processing, smart contract storage, and so on;
- FLOW coins are used as a payment method on dApps created on the network, this way allowing the dApps to support P2P payments. Besides that, FLOW tokens are also used as payment for services provided by the dApps;
- FLOW coins can be staked to secure the network by using validator nodes. By doing that, stakers can also earn rewards. Besides, instead of operating the validator nodes themselves, they can delegate their stakes to others;
- FLOW coins allow holders to participate in the decision-making processes of the project.
You should analyze the Flow price chart if you intend to buy FLOW coins. Given that the FLOW price is subject to fluctuation, analysis is crucial. Why does it fluctuate? Essentially, this is a result of FLOW's volatility, which is comparable to that of the majority of other crypto assets. Overall, FLOW tokens are frequently influenced by the same factors that affect the whole crypto market.
However, apart from purchasing FLOW, you can also earn it. There are three ways to do that – you can earn it as a backer, as a validator, or as a platform contributor:
- As a backer, you get it for backing the Flow network;
- As a validator, you get it as a reward for running nodes;
- As a platform contributor, you earn it as a reward for building the Flow network.
Tokenomics of FLOW
The FLOW tokens have no max supply, which means that they are inflationary. If there is a demand, more tokens can be issued. Initially, 1.25 billion FLOW tokens were issued. However, FLOW supply is meant to increase as time passes due to new tokens generated while staking.
20% of FLOW coins are allocated to Dapper Labs, while 32% are used to advance the ecosystem. The remainder of the coins is given to the development team, small and major backers, as well as set aside for community sales.
Besides, convertible notes (a sort of stock-and-bond hybrid) were used by Dapper Labs to raise money prior to the FLOW tokens' release. This way, the company managed to raise $24.6 million. However, it’s planned to convert these notes into FLOW tokens.
Lastly, don't forget to take a look at the Flow price chart above where you can see the live FLOW price.