Ever wonder what is the Flow blockchain? On the surface, Flow looks like any other layer one (L1) blockchain but what makes it special is its focus on consumer applications and experiences.

Flow is best known for its ecosystem of non-fungible tokens (NFTs) and blockchain games. In 2022, Flow found incredible success with the launch of a digital collectible game called NBA Top Shot. Today, Flow has expanded to host official blockchain games from Disney and the National Football League (NFL).

Without further ado, let’s learn about the Flow blockchain, its advantages over its rival L1 chains, and more. Our Flow Blockchain review will also help you understand how to use FLOW tokens.

Key Takeaways

• Reputed development team: Flow’s creators, Dapper Labs, are among the most successful development teams in the crypto sector.

• Solving blockchain scalability: Flow features a unique multi-node architecture that distributes tasks typically handled by a full node across several specialized nodes.

• FLOW delegation: Delegators must deposit a minimum of 50 FLOW tokens and pay a fee to node operators for participating in network validation.

• Governance: Staked FLOW tokens grant holders the right to participate in protocol governance decisions.

• NFT-first platform: Flow is designed for blockchain gaming developers and digital artists, offering low gas fees and high throughput to support NFTs and interactive experiences.

Flow Blockchain Review: Summary

Flow is a Layer 1 blockchain that has become popular among gaming developers and NFT artists. The L1 was created by Dapper Labs, one of the most successful decentralized application (Dapp) development teams in the crypto industry.

Like many L1 projects out there, Flow’s origins go back to solving the blockchain scalability problem. It all began when Dapper Labs’ development team faced network congestion on Ethereum following the viral success of their NFT project named CryptoKitties.

What is Flow Blockchain?

Flow’s design is centered around two primary node types – Consensus nodes and Execution nodes. Consensus nodes select and order transactions and are responsible for forming blocks. Execution nodes provide computational power to produce cryptographic proofs that attest the validity of the newly created blocks. These cryptographic attestations can be used to challenge the validity of a block.

Flow’s co-founders – Alexander Hentschel, Dieter Shirley, and Layne Lafrance – argued in the original white paper that Flow’s unique architecture increases network throughput without adding complexity to the blockchain design. They added that scaling methods such as sharding and offchain solutions used in traditional blockchains make blockchain programming models complex and increase the cost and time for Dapp development.

Since its mainnet launch in 2020, Flow has managed to rank among the top 100 most valuable cryptocurrencies by market cap. However, Flow’s total value lock (TVL) remains low due to its focus on consumer applications instead of decentralized finance (DeFi).

Flow raised about $18 million in 2020 via an initial coin offering (ICO) when community members were offered FLOW tokens at an auction price of $0.1 per token.

History of Flow Blockchain

Flow’s origins go back to CryptoKitties – an NFT and blocking gaming pioneer project. CryptoKitties was launched by a Vancouver-based venture studio called Axiom Zen (Axiom Zen later created Dapper Labs) in October 2017 on the Ethereum blockchain. Within a few months, CryptoKitties became such a viral hit that the Ethereum blockchain became unusable for a period of time due to network congestion.

The sluggishness of Ethereum and exorbitant gas fees forced the development team of CryptoKitties to think of a solution to scalability issues that plagued the world of blockchain. It was then that Flow was born.

Flow was created to solve the blockchain trilemma which is a term popularized by Ethereum co-founder Vitalik Buterin. The blockchain trilemma states that blockchains have to make a trade-off between security, decentralization, and scalability as achieving desirable levels of all three properties is very difficult.

Flow Blockchain Team

Flow was developed by Dapper Labs. The same development team has also created viral blockchain games such as CryptoKitties (as Axiom Zen) and NBA Top Shot. Flow’s original white paper was co-authored by Alexander Hentschel, Dieter Shirley, and Layne Lafrance.

Alexander Hentschel is a computer scientist who grew up in Germany. He studied Computer Science and Physics with a focus on applied mathematics, before completing a PhD in Quantum Computing at the University of Calgary in Canada. Hentschel started Axiom Zen in 2017 and started working with Dieter Shirley and Layne Lafrance on Flow Protocol in 2018.

Dieter Shirley is the current chief technology officer of Dapper Labs and Chief Architect of Flow. He was the co-creator of the ERC-721 token standard.

Layne Lafrance was born in Canada but grew up in England. Lafrance moved back to Canada to study finance at the University of British Columbia, after which she joined forces with Shirley at Axiom Zen.

How Flow Blockchain Works?

The Flow network implements a technique known as pipeline or pipelining which refers to executing multiple tasks simultaneously to improve performance. In a quest to find the ideal solution for the blockchain trilemma conundrum, Flow distributes tasks typically handled by a full node in traditional blockchains like Bitcoin and Ethereum across four specialized nodes: Collection nodes, Consensus nodes, Execution nodes, and Verification nodes.

Flow’s architecture focuses on maximizing performance for a particular task. Let’s learn about the different types of Flow nodes and their responsibilities below:

Collection Nodes

Collection nodes are network participants that order transactions into batches. These nodes act as a censorship-resistant data availability layer.

Consensus Nodes

Consensus nodes are network participants that create new blocks and commit execution results after verification. These nodes serve as a security layer in the Flow network.

Execution Nodes

Execution nodes finalize blockchain transactions and record state changes. These nodes provide computational resources to network.

Verifier Nodes

Verification nodes validate the work of the execution nodes. They report their findings to the consensus nodes. These nodes are crucial to the correctness of Flow’s blockchain data are they ensure that all transactions are executed truthfully.

Flow is split into FOUR node types to achieve dramatic improvements in speed and throughput

1️⃣ Collector Nodes increase efficiency
2️⃣ Execution Nodes enable speed and scale
3️⃣ Verifier Nodes guarantee correctness
4️⃣ Consensus Nodes ensure decentralizationhttps://t.co/8zFlufRONm pic.twitter.com/7FJoEKSi7K

— Flow.com (@flow_blockchain) December 6, 2020

The Flow Token

FLOW is the native token of the Flow blockchain. The token is primarily used to reward stakers on the network, for paying gas fees, and as a medium of exchange.

FLOW Token Economics

According to Flow, its native token is different from other L1 tokens because its smart contract is written in the Cadence programming language which makes it easy to write apps that interact with the FLOW token.

The FLOW tokens shares similarities with Ethereum’s ETH token as both tokens do not have a supply cap. Newly-minted FLOW tokens are rewarded to network participants who run a node.

1.25 billion FLOW tokens were created at launch. Here is the breakdown of the initial supply distribution:

FLOW Reward Rate

There are two ways to earn FLOW tokens:

1. As a validator or delegator for taking part in running a node.

2. As a community contributor where Flow funds the development of teams who submit proposals.

According to official documents, the reward to node operators for each epoch (approximately one week) are fixed for that epoch. Node operators are first paid from a pool of transaction fees collected by the network. Once the pool is depleted, the Flow protocol mints new tokens to be used as rewards.

Staking Flow

Flow is a proof-of-stake (PoS) blockchain which means that the network depends on participants known as validators to verify and execute transactions. As explained earlier, Flow implements a multi-node architecture that splits the task of a validator node across four specialized nodes. Each specialized node operator is rewarded FLOW tokens for their honest work.

If you want to stake FLOW tokens you can do so by running your own node. Each node role comes with a minimum stake amount requirement. They are as follows:

If you are not keen on maintaining your staking hardware you can simply delegate your tokens for staking to the node operator. Note the FLOW delegators must deposit a minimum of 50 FLOW tokens and are charged a fee by node operators, currently set at 8% of delegated funds. Staking and delegation can be done via the Flow Port which is a browser-based app that provides functionality for staking and delegating FLOW tokens. You can use the Flow Port with any compatible crypto wallet.

Slashing

Slashing refers to a security measure enforced by proof-of-stake blockchains to ensure validators’ liveness and honesty. During a slashing event, validators risk losing their staked deposits and may be forced out of the network.

The Flow Protocol only slashes node operators that act in a way to adversely impacts the security and integrity of the network. Node operators are not slashed of liveness infractions on Flow, instead their staked rewards are reduced, often by 50%, for a given epoch.

Consensus nodes implement slashing on Flow. During such an event, the guilty node operator’s staked deposit is fined.

Flow Governance

The FLOW token’s usage extends to network governance. FLOW token gives the power to vote on protocol upgrade proposals, management of ecosystem funds, selection of council members, committee budgets, management of legal affairs, and inflation rate discussions.

However, simply holding FLOW tokens does not make you eligible for participation in Flow governance. Holders have to stake their FLOW tokens to receive the right to participate in governance.

Flow Use Cases

Next, let’s learn what the FLOW token is used for. Remember, token utility can act as a key driver for its demand.

Top Features of Flow Blockchain: What Makes Flow Unique

Here are the features of Flow that make it unique from its competition.

• Multi-node architecture: Flow aims to solve scalability issues that plague public blockchain technology by using a multi-node architecture that splits the task of a validator node across four specialized nodes.

• Cadence programming language – Flow uses the Cadence programming language which allows faster and safer smart contract development.

• High throughput – Flow recorded a max higher transaction per second (TPS) of 103 compared to Ethereum’s 62 TPS, data on Chainaspect showed.

• EVM compatibility – Flow is designed to be EVM compatible which means that Ethereum smart contracts written in Solidity can be easily executed in Flow without any code changes

• NFT-first platform – Flow is the ideal platform for blockchain gaming developers and artists due to its low gas fees and high throughput.

• Native account abstraction – Flow blockchain has native account abstraction which solves pressing user experience issues such as tedious wallet setup and key management.

Pros and Cons of Flow Blockchain

Pros

• Scalability: Flow uses a unique multi-node architecture that separates the roles of nodes into four types: Collector, Execution, Verifier, and Consensus. This design allows for high scalability without overcomplicating the blockchain.

• Developer-Friendly: Flow is known for being developer-friendly due to its resource-oriented and easy-to-learn Cadence programming language.

• High Performance: Flow was designed to provide an alternative to Ethereum’s congestion issues and high gas fees.

• User-Friendly Experience: Features such as native account abstraction and gasless fees create a smoother, more accessible user experience.

• Strong Ecosystem Support: Flow has partnerships with major brands like Disney, NBA, NFL, UFC, and Warner Music, strengthening its ecosystem and visibility.

• Energy Efficiency: As a proof-of-stake blockchain, Flow is significantly more energy-efficient than proof-of-work blockchains like Bitcoin and Ethereum Classic.

Cons

• Centralization Concerns: Flow’s heavy reliance on its core development team, Dapper Labs, has raised questions about decentralization.

• Securities Concerns: There is ongoing uncertainty about whether the FLOW token will be classified as a security or a digital commodity.

• Cadence Not Popular: Cadence is not a widely used programming language in the crypto industry, requiring developers to learn it before adopting Flow.

• Competition: Flow faces strong competition in the Layer-1 sector from blockchains like Ethereum, Solana, and Polygon, which have larger ecosystems and user bases.

• Dependence on NFTs and Gaming: Flow’s primary use cases are NFTs and gaming, which may limit its appeal to developers focusing on DeFi or other blockchain applications.

Flow also has a wide range of partners and a large ecosystem, which contribute to Flow token holders remaining long-term bullish on the project:

How to Buy Flow Token

Thinking of buying FLOW tokens to add to your crypto portfolio? You can either get them on a centralized exchange (CEX) or on a decentralized exchange (DEX). If you value decentralization there is no better way to trade cryptocurrencies than on a DEX. If you want convenience, a CEX would suit you best.

Buy FLOW on Centralized Exchanges: The Easy Way

Buying crypto on a centralized exchange is very easy. Platforms like Margex, MEXC, OKX, and Binance provide users with smooth fiat onramp and offramp facilities and a plethora of crypto tokens to choose from. To buy FLOW on centralized exchanges you can follow these easy steps.

• Visit Your Chosen Centralized Exchange

  Visit the centralized exchange of your choice. You can either download their mobile app or go to their official website. Always verify the URL and look for the padlock icon to avoid phishing sites.

• Create an Account or Log In

  Set up your account or log in. If you are creating an account for the first time, complete the Know Your Customer (KYC) process by submitting the required ID and information.

• Deposit Funds

  Once your account is ready, add funds using a debit card, credit card, or bank transfer. Confirm deposit limits and any fees before you proceed.

• Buy FLOW

  Search for the FLOW token on the exchange. Double-check the token ticker and name, review the trade details (market vs. limit order), and complete the swap/purchase to buy FLOW.

After buying, consider moving your FLOW to a self-custodial wallet for long-term storage and enable security measures like 2FA to protect your account.

Buy FLOW on Decentralized Exchanges: The DeFi Route

If you are thinking of using a DEX to trade crypto, make sure you set up a self-custodial crypto wallet. You have plenty of options to choose from, including Best Wallet which is free to download on App Store and Google Play.

Once you have set up your crypto wallet, you can follow these easy steps:

• Choose a DEX on the Flow Blockchain

  Remember that the native FLOW token is only available on a DEX built on the Flow blockchain. At the time of writing, Increment is the leading DEX on Flow by trading volume.

• Prepare Your Wallet

  Ensure you have FLOW tokens in your wallet to cover transaction fees. You’ll also need another supported crypto asset (like USDT) to trade for FLOW.

• Visit the DEX and Connect Your Wallet

  Go to the official DEX website and connect your crypto wallet. In the trading interface, search for the FLOW token.

• Select Tokens and Review the Exchange Rate

  For example, if you have USDT stablecoins, choose USDT as the token you’re swapping from and FLOW as the token you’re buying. Review the exchange rate displayed by the DEX.

• Execute the Transaction

  Once satisfied with the rate, check the gas fee quote and proceed with the swap. Carefully review the signature request on your wallet before approving to avoid scams. After confirming the transaction, your new FLOW tokens will appear in your crypto wallet.

Always verify that you’re using the official DEX website and double-check wallet permissions before confirming any swap.

Is Flow A Good Investment?

FLOW is the 82nd largest crypto in the world with a market cap of $1.55 billion, at the time of writing. The token’s all-time high stands at over $46 hit on April 2021. Since then, FLOW token has lost over 90% of its value due to the losing hype of the NFT industry.

FLOW has mounted a comeback in 2024 supported by a broader cryptocurrency market bull cycle. Over the past one year, FLOW has gained nearly 29% to hit $1.

In a report, Crypto analysts at Messari noted the “extremely cyclical” nature of NFTs which remains a core market for the Flow blockchain.

Interest in non-fungible tokens (NFTs) has historically been extremely cyclical. With that cyclicality has come the emergence and death of many consumer-focused projects. However, Flow and its founders have played a significant role throughout many of the sector’s cycles. First, Flow’s founders pioneered the ERC-721 token standard via the CryptoKitties NFT project in 2017. Then, in 2021, Flow’s NBA Top Shot application helped put NFT collectibles into the mainstream. Today, Flow stands strong, continuing to innovate and be a foundational part of crypto’s consumer sector.

Best Flow Wallets

Looking for the best crypto wallets to hold your FLOW tokens? Here are some recommendations.

1. Best Wallet

Best Wallet is non-custodial crypto wallet that gives you total control over your cryptocurrencies. Best Wallet support multiple blockchain allowing you to hold BTC, ETH and FLOW all in one application.

Best Wallet Features

• User-friendly interface – Best Wallet is easy to use making it a great option for beginners.

• Multi-chain support – Best Wallet supports numerous blockchains removing the need to maintain multiple wallets for different tokens.

• Built-in trading feature – Best Wallet has in-app trading features that allow you to seamlessly swap one token for another.

You can learn more about our top wallet choice in our dedicated Best Wallet Review.

2. Trezor

Trezor Wallets are among the industry-leading and most reputable hardware wallets on the market. Known for their water-tight security, hardware wallets are known to be one of the safest ways to store cryptocurrencies as they remain isolated from the internet.

Trezor Features

• Cold storage – Isolation from the internet adds an extra layer of security to hardware wallets.

• Open-source software – Trezor uses open-source software which allows frequent and innovative updates from the community.

• Backup and recovery – Trezor provides easy wallet recovery in case your device is lost or damaged.

• Multi-currency support – Trezor supports multiple currencies making it a great altcoin and bitcoin wallet.

We recommend the Trezor Safe 3 as an affordable and solid all-around hardware wallet. You can learn more about it in our Trezor Safe 3 Review.

Conclusion: Flow Blockchain Review

Flow is a unique crypto project that has focused on catering to the NFT industry and blockchain gaming sector since its launch. Top consumer brands looking to dip their toes into the world of NFTs have regularly called upon Flow to tokenize their assets.