The end of 2017 brought the network Ethereum huge challenge. It was jammed by a rather inconspicuous game NFT CryptoKitties, which initiated a discussion on the scalability problems of existing blockchains. The NFT sector, which is growing in strength, has also started to gain significance in this field. One possible solution to this problem is a project called Flow.
Scalability problems and a new blockchain
The Flow project was created in 2018, and its originator was Dapper Labs, or to be more precise, the director of technology, Dieter Shirley. This is the same company that released the CryptoKitties game. Shortly after its establishment, it managed to raise $ 12 million from venture capital funds, and now the amount is already $ 600 million.
In May 2020, Mainnet Flow was launched as a protocol Proof of Stake. It was created from scratch, and developers associated with the Libra project were involved in its creation. The protocol is based on an innovative programming language called Cadence.
Flow already has its own project, NBA Top Shot. His partners are, among others Warner Music Group, CNN, Samsung or Ubisoft.
Four types of knots
In the case of the Flow project, attempts to solve the scalability problems were successful. She felt them hard in her time, for example the Ethereum network. It is worth adding that Flow developers managed without relying on sharing. The highly efficient Proof of Stake protocol was used, in which the network load is distributed among four types of nodes. Each of them is assigned specific tasks, determined by their technical capabilities.
Consensus Nodes are responsible for ordering transactions. The execution nodes (ExecutionNodes) are tasked with processing transactions. The third type are Verification Nodes, the function of which is to ensure that execution nodes correctly process transactions. In contrast, CollectionNodes are oriented towards collecting transactions.
This solution makes the Flow blockchain characterized by high efficiency and a high level of security. There are also no traditionally understood validators, replaced by multi-node architecture.
Flow tokens and their application
Flow is the native currency of the blockchain. At the time of its launch, 1 were issued tokens. Their supply is gradually growing, and what contributes to this is the use of inflation to pay stakers validation rewards. In addition, Flow has applied a limit on monetary inflation, which makes it impossible to lower the value of tokens.
The new tokens are used to equalize the differences between transaction fees for transactions with a certain payment for validators. This translates into a gradual decline in the inflation rate and an increase in transaction fees. In addition, Flow tokens are also used for transaction fees and those related to data storage. According to the plan, soon they will also entitle to participation in the ecosystem management process.
Although storing Flow tokens is associated with quite high requirements, each user has the opportunity to delegate their tokens to nodes by using the Flow Port Wallet Portal, compatible with the Blocto or Ledger wallet.