If are you a fan of apps like Alien Puppies and Mars Genesis, then you must be versed with Flow, the powerful blockchain that’s the engine of popular applications in crypto, NFTs, and gaming. Launched by Dapper Labs in 2019, Flow is quickly gaining pace as the go-to blockchain for businesses to build and grow their user base. Flow blockchain is focused on low transaction fees and a truly user-centric experience, therefore it positions itself as the go-to source that will help build the next generation of apps, games, and digital assets. But what is flow crypto, and why should you use it? In this article, we will focus on FLOW.
Defining Flow Crypto
FLOW is a traditional cryptocurrency of the Flow blockchain. It facilitates payment for transactions, stakes rewards, and helps safeguard the network. FLOW is also used to develop and control dApps on the Flow blockchain. Flow is one the number one blockchain for building the next generation of apps, NFTs, and games. It’s meant to work in a way free of sharding techniques, so transactions run fast and smoothly. Importantly, Flow crypto is designed to reduce the technicalities found in other blockchains facilitating transactions. The Flow blockchain will not simply enhance the end-user experience but also act as a field for developers to build, test, and launch projects quickly and efficiently.
How does Flow Crypto work?
Each blockchain has its own technique of validation to process transactions and safeguard the network. For instance, the Ethereum blockchain’s Proof-of-Stake (PoS) allows for a decentralized and secure network. However, it experiences difficulties in terms of scaling and processing large-scale transactions while lowering costs. This has resulted in the creation of Layer 2 solutions that can run many orders off-chain more quickly and reduce transaction fees than the mainnet. Flow, on the other hand, divides the burden of processing transactions into four separate nodes. Each node has its own role and responsibility. Rather than rely on off-chain solutions to scale the network, Flow’s division of nodes makes it more stable in blockchain scalability.
The benefits of the Flow blockchain
Flow is user-friendly and mainstream adaptable
Flow crypto is built to be mainstream-ready, making it highly developer-friendly and easy for novice crypto users to get involved. For example, the Flow network allows users to easily recover lost keys. Furthermore, Flow crypto allows users to experience only fewer steps when implementing their favorite projects. This has led companies such as Dapper Labs to use Flow for all their portfolio projects.
Flow is void of sharding
According to flow, Smart contracts and user accounts on their platform can always interact with each other in one atomic, consistent, isolated, and durable (ACID) transaction. This means that all applications on the Flow blockchain can run in the same shared execution state. Sharding and layer 2 solutions are elements that decrease the network effects for dapps. While sharding is beneficial in some cases, it’s not a permanent solution. Flow avoids sharding when integrating blockchain, allowing it to bypass some of the barriers.
Flow focuses on decentralization
Flow crypto provides an incredibly easy way for developers and users to participate in the Flow ecosystem. This paves the way for more individuals to participate in the consensus process that safeguards the network. According to the Flow network, they take priority in committing to a diverse and decentralized participation in the Flow Network. This means that distribute their token in compliance with securities law and other relevant regulatory frameworks.
Flow is backed by some of the world’s biggest investors and brands
Flow crypto is under the backing of powerful and well-respected investors, ensuring long-term growth and a sustainable ecosystem. Both the Flow blockchain and FLOW token constantly expand their growth and with more people knowing about flow crypto, it’s in a good position to become a major player in the mainstream adoption of cryptocurrency.
How to earn newly created Flow Tokens
According to the project papers, users can earn Flow tokens in different ways. Around 1.25 billion FLOW tokens are available. Users can earn a token primarily by being a validator in the blockchain. A validator receives newly minted FLOW as a reward for running a node on the network, also known as mining. Furthermore, users can receive newly minted FLOW as a reward for making apps on the Flow blockchain. Also, an individual in possession of a FLOW token gets holding rewards. Additionally, users can stake their Flow tokens on the network and gain new FLOW tokens in return.
Is Flow Crypto a Good Investment?
Whether you consider FLOW crypto as a good investment depends on you. There are several reasons why you should not trip on flow crypto. FLOW is a well-structured cryptocurrency with numerous benefits when compared to other blockchains. What makes Flow Crypto great is that it is scalable, secure, and user-friendly, making it a good choice for dApps that want to gain large audiences. Secondly, FLOW has the backing of a strong team of developers and investors. The technical staff of FLOW includes some of the most experienced and talented individuals in the blockchain industry, and they have a reputation for success. Furthermore, FLOW has several partnerships with major brands which could help to drive the adoption of FLOW and the Flow blockchain. All these reasons make flow somewhat good for investment. However, keep in mind that investing in flow will require patience as with other blockchains. However, despite the advantages of investing in flow crypto, there are also some risks associated with investing in FLOW crypto. The cryptocurrency market is very volatile, and the price of FLOW could easily reach extreme lows and highs. Furthermore, FLOW is a new cryptocurrency, and it is yet to establish its spot as Bitcoin.
Bottom line
FLOW crypto is showing a lot of promise with several potential advantages. However, there are numerous risks associated with investing in FLOW crypto. Therefore, be mentally and financially ready before investing. Ultimately, the decision to invest in flow crypto is a matter of opinion. Regardless, FLOW crypto has the potential to be a good investment but conduct your own research before investing in any cryptocurrency.
