Flow Blockchain Review 2022 – Is Flow a Good Investment?

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Welcome to the Bulliscoming media Flow blockchain review. 

flow blockchain logo

There have been several blockchains in development due to the fast-rising nature of the blockchain industry and cryptocurrency adoption. The first blockchain that was created was the bitcoin blockchain, which quickly gained popularity after the successful launch and adoption of bitcoin. Blockchain technology has grown to be one of the most revolutionary technological advancements in the world. Its use cases are seen in different sectors, including gaming, supply chain management, finance, etc.ย 

However, Web3, which promises to be an integration of blockchain and the real world, will demand the high-scale integration of NFT solutions. Therefore, building blockchains that are developer-friendly and able to sustain large-scale NFT projects has created a new area of concern, which is where Flow Blockchain comes in. 

What is Flow blockchain? 

The Flow blockchain is a blockchain that was built by Dapper Labs, the founders of the renowned blockchain game, CryptoKitties, to provide a sustainable blockchain where NFTs projects, blockchain games, etc. can be successfully built on and supported. 

The decision to build the flow blockchain by the flow blockchain developers came after the blockchain game created by Dapper Labs, CryptoKitties, could no longer be sustained on the Ethereum blockchain. 

Due to the high volume of the CryptoKitties players on the platform, it increased the load on the Ethereum blockchain, leading to the blockchain slowing down to almost a halt and a high increase in gas fees to keep the blockchain running. 

This struggle led to increased gas fees on the part of CryptoKitties developers and, therefore, a need for a more sustainable solution. 

How does Flow blockchain work 

While developing blockchains, an issue was discovered by the founder of Ethereum, Vitalik Buterin, called the blockchain trilemma. The blockchain dilemma states that no blockchain can attain scalability, decentralization, and security at the same time. So whenever developers build a blockchain, they are faced with the option to come to a compromise to build a sustainable blockchain. 

However, as the Web3 space continues to grow so rapidly, more scalable solutions are needed. Considering there are more blockchain games in development and the gaming industry is huge, it might become too much for the blockchain networks that are currently available. This may mean slower transaction speeds and higher gas fees, as CryptoKitties did on Ethereum. 

To support blockchain game developers and gamers, Flow blockchain was developed to be a scaleable and sustainable platform. With its advanced consensus mechanism, the Flow blockchain can accommodate millions of gamers simultaneously. 

flow blockchain ecosystem
Flow ecosystem

In traditional blockchains, all nodes in the network perform the tasks of verifying and transmitting transactions (consensus) all at once. Due to the heavy workload from completing these highly computational tasks on each node to verify the same data, solutions like sharding and other layer 2 consensus algorithms were created to reduce the network load. Despite this, more nodes verifying the same transaction still result in slower transaction speeds and higher gas fees. 

In a bid to provide a solution to this blockchain dilemma and increase scalability, security, and decentralization, flow blockchain developed a new consensus algorithm that proves to be more efficient. The flow blockchain, instead of sharding, uses a model known as a multi-node architecture. The separation of concerns consensus algorithm divides the verification and execution of transactions into different parts, whereas traditional blockchain consensus, where all nodes verify the same transaction.

All the nodes involved in the network still perform the work of consensus. However, each node is assigned a specialized task in the consensus. The consensus roles for the nodes include 

  • Collection nodes that specialize in the collection of transaction information and increase efficiency. 
  • Execution nodes perform the computational tasks needed, increasing speed and scalability.
  • Verification nodes specialize in ensuring the correctness of computational data and keeping the execution nodes in check. 
  • Consensus nodes improve decentralization within the network. 
flow blockchain consensus mechanism
Flow blockchain consensus mechanism

Since the nodes are assigned specialized tasks, the multimode architecture of Flow solves scalability and security problems while simplifying the network for developers. 

Due to these features, the flow blockchain is seen as more appealing to developers to build Web3 solutions on the flow blockchain since it has the mechanism to support millions of blockchain gamers as a result of its scalability. 

Does Flow blockchain have a coin? 

The native token for the FLOW ecosystem is the FLOW token. The FLOW token can be used for several functionalities within the FLOW ecosystem, including: 

  • FLOW holders can earn rewards by staking FLOW to further improve the network and validation activities. 
  • FLOW holders can participate in governance within the FLOW ecosystem. 
  • It is used to pay transaction fees within the ecosystem. 
  • Since FLOW is a defi ecosystem, the FLOW token can be used as collateral for other tokens.
  • It can be used as a deposit for data storage. 

Is Flow a good investment? 

The FLOW token is the native token of the FLOW ecosystem, which includes the FLOW blockchain, so as more developers build on the ecosystem and use the token for transactions and gas fees, the token is projected to probably increase in value and price. 

Flow blockchain is a widely known and accepted ecosystem and takes pride in partnering with some of the top sports leagues such as NBA Top Shot, UFC Strike, etc., and also the developers behind the popular blockchain game Cryptokitties. 

What is Flow blockchain NFT Marketplace

NFT marketplaces are platforms where users can buy, sell, or trade NFTs easily. There are several NFT marketplaces, each built on different blockchains. For instance, on Ethereum, the most commonly known NFT marketplace is OpenSea, and on Solana, the most commonly used is Magic Eden. 

The Flow blockchain, however, has a wide network of NFT marketplaces that are divided into four main categories, which include: 

General Flow NFT Marketplaces

These are Flow NFT marketplaces where users can purchase any type of NFT, ranging from avatars to gaming gadgets, etc. They include Rarible, Gaia Marketplace, BloctoBay, Matrix Market, VIV3, Sturdy Exchange, Starly, Mynft, Epix, Unblocked

Specific Flow NFT Marketplaces 

These are NFT marketplaces that specialize in buying and selling only one category of NFTs, like music NFTs, art NFTs, gaming NFTs, etc. They include Eternal, RCRDSHP, Geniace, Versus, xtingles, and more.

Sports Flow NFT Marketplaces

As the name implies, these are focused on only sports NFTs such as NBA Top Shot, NFL All Day, FanCraze, UFC Strike, The Football Club, RaceDay NFT, Fantastec SWAP, nWayPlay, AFL Mint, The Playerโ€™s Lounge, and more.

Application-specific Flow Marketplaces

These support only NFTs that are built for a particular application. They include Flovatar, Genies, Seussibles, Party Gooberz, and more.

What is Flow Blockchain Wallet?

Flow blockchain wallets are wallets that enable users to access features on the flow network, including connecting to their flow account. Flow blockchain wallets can be used for several features, such as sending and receiving funds, buying and selling NFTs, displaying NFTs on marketplaces, creating flow accounts, verifying flow applications, etc. 

The Flow blockchain has some approved and verified wallets that are supported by the network for users. Some of them include Blockto, Dapper Wallet, Lilico, Ledger, and Finoa. 

Conclusion 

This Flow blockchain ecosystem provides a platform that is suitable for web3 builders and developers to create compatible solutions in the web3 ecosystem since it has a vast ecosystem and is considered to be the next evolution of web3 solutions.

Since the flow blockchain can support millions of blockchain gamers, we can say it is indeed the next step in the evolution and adoption of Web3. 

Also read: https://bulliscoming.com/learn-web3-for-free/