What is Flow (FLOW)? Everything you need to know about FLOW Coin

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I. What is Flow (FLOW)?

Flow is a fast, decentralized, developer-friendly blockchain. It is the layer-1 blockchain created by CryptoKitties, Dapper Wallet, and NBA Top Shot. Dapper Labs is the original creator behind Flow Blockchain. It has some big names as its investors, such as Google Ventures, Samsung, Venrock, Andreessen Horowitz, Union Square Ventures, and founders of Dreamworks, Coinbase, Zynga, Reddit, etc. 

The Flow blockchain has been created to power the new generation of apps, games, and digital assets. It is designed, keeping mainstream blockchain adoption in mind. It builds usability improvement into the protocol layer.  

Flow enables developers to build crypto and crypto-related businesses. Smart contracts on Flow blockchain work like Lego blocks to power various apps. It serves people belonging to different fields, ranging from sports fans to complex businesses, and with critical requirements, says its whitepaper.

The ecosystem has a native currency, FLOW. The native token is used as a payment method and a reserve asset for the Flow economy. The users, validators, and developers use it to participate in the network and earn rewards. It is also used to participate in future protocol governance and pay the fees.
II. Flow (FLOW) Token Use Cases

FLOW is the fundamental native asset of the FLOW ecosystem and its functionality includes:​
  • Rewards: FLOW holders can earn rewards by staking FLOW as a security deposit to secure the network through validators.​
  • Transaction fees for transactions on Flow blockchain.​
  • Deposit for data storage.​
  • Collateral for secondary tokens.​
  • Participation in governance.​

III. Flow (FLOW) Advantages

Flow is designed as the foundation for a new generation of games, apps, and the digital assets that power them. There are four main advantages the developers believe Flow has over other blockchains.

Flow’s Multi-Role Architecture: Flow channels the work of a blockchain miner or validator across four different roles that all require staking; a separation of concerns that helps to reduce redundant processing efforts:​
  • Consensus Nodes decide the presence and order of transactions on the blockchain​
  • Verification Nodes are responsible for keeping the Execution Nodes in check​
  • Execution Nodes perform the computation associated with each transaction​
  • Collection Nodes enhance network connectivity and data availability for dapps​
  • Resource-oriented programming: smart contracts on Flow are written in Cadence, an easier and safer programming language for crypto assets and apps.​
  • Developer ergonomics: from upgradeable smart contracts and built-in logging support to the Flow Emulator, the Flow network is designed for results.​
  • Consumer onboarding: Flow was designed for mainstream consumers, with payment onramps catalyzing a safe and low-friction path from fiat to crypto.​

IV. Where to buy Flow (FLOW)?

Flow’s native FLOW token was initially offered to the public in October 2020 through CoinList, but was unavailable within the United States and Canada. Tokens sold through the offering were locked up for at least a year thereafter, which means they can’t be circulated until they’re unlocked.

On the other hand, FLOW rewards paid to validators can be transferred and sold, so there is some Flow (FLOW) out on the market, and some exchanges like Kraken and Huobi let users transact FLOW. Recently, major exchanges like Coinbase, Binance have listed FLOW.​

V. Is Flow (FLOW) a good investment?

To participate in Flow blockchain and its ecosystem, users will need Flow (FLOW) as the gas fees. Therefore, the more projects built on Flow, the higher price of Flow will probably be.

FLOW is having solely one DEX up to the moment of writing - BloctoSwap. BloctoSwap is running its beta version and has averagely $1M in volume per day. The volume mainly comes from FLOW and Blocto Tokens and it is still very small.

However, BloctoSwap backers include leading VCs such as Alameda Research, Amonica, CMS, AppWork, etc so for sure the project will receive giant support in the long run. DEXes play an important role in any ecosystem. They will flourish as well as boost up the whole ecosystem and vice versa.

Lending/ Borrowing projects on the Flow ecosystem include Flowty - A Flow blockchain-based, peer-to-peer (P2P) lending platform and NFTfi - The marketplace for NFT collateralized loans. None of them have been launched yet so it is very exciting and suspenseful to wait for those projects to start working.​

VI. Summary

This article has included the most critical and detailed information on the Flow (FLOW) Token. If you have any questions, ideas or problems, please leave a comment below. The cryptocurrency market is quite risky, please consider carefully before your investment decisions.​

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