Flow Blockchain Review: Beginner’s Guide to FLOW
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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.
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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.
Key Highlights
- Reputed development team: Flow’s creators – Dapper Labs – is one of the most successful development teams in the crypto sector.
- Solving blockchain scalability: Flow has a unique multi-node architecture that distributes tasks typically handled by a full node across several specialized nodes.
- FLOW delegation: FLOW delegators must deposit a minimum of 50 FLOW tokens and are charged a fee by node operators.
- Governance: Staked FLOW tokens give holders the right to vote on protocol governance.
- NFT-first platform: Flow is created for blockchain gaming developers and artists and is supported by low gas fees and high throughput.
What is Flow Blockchain?
is a performance-focused L1 blockchain that looks to solve scalability issues by separating the consensus mechanism from transaction execution. Instead of a miner or a validator node performing both functions, Flow’s unique architecture splits the work into different roles.
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 are network participants that order transactions into batches. These nodes act as a censorship-resistant data availability layer. 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 finalize blockchain transactions and record state changes. These nodes provide computational resources to network. 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.Collection Nodes
Consensus Nodes
Execution Nodes
Verifier Nodes
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 (🎁+🔑) (@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.
At the time of writing, FLOW was the 81st largest token in the cryptocurrency market.
Currently, as of January 24, 2025, Flow is trading at $0.70, which is a +3.18% change over the past 24 hours.
Flow is down from its all-time-high of $44.91, set in 2021, but has decreased -4.31% over the past 12 months. It has a market cap of $1.10B.
- Flow
(FLOW) - Price $0.685
- Market Cap
$1.07 B
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:
Allocation % of initial supply allocated Number of tokens allocated Ecosystem Fund 32% 400,200,000 FLOW Pre-launch investors and community sale 30% 374,800,000 FLOW Dapper Labs 20% 250,000,000 FLOW Development Team 18% 225,000,000 FLOW Total 100% 1,250,000,000 FLOW
FLOW Reward Rate
There are two ways to earn FLOW tokens:
- As a validator or delegator for taking part in running a node.
- 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:
| Node role | Minimum Stake |
| Collection Node | 250,000 FLOW |
| Consensus Node | 500,000 FLOW |
| Execution Node | 1,250,000 FLOW |
| Verification Node | 135,000 FLOW |
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.
Use case
Details
Staking
FLOW token holders can stake tokens to become eligible to run specialized nodes. Flow node operators earn rewards.
Delegation
Token holders can delegate their tokens to node operators to earn yield.
Spending
FLOW is the native token and medium of exchange on Flow blockchain and its apps.
Governance
Staked FLOW tokens give holders the right to vote on protocol governance proposals.
Gas fees
Transaction fees are paid using FLOW tokens on Flow blockchain.
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: Cons:
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 the centralized exchange of your choice. You can either download their mobile app or visit their website.
- Set up your account or log in. If you are creating an account for the first time, you will have to complete Know Your Customer (KYC) processes.
- Once you have set up an account. Use your debit card, credit card, or bank transfer to add funds to your account.
- Now you are ready to buy cryptocurrencies. Search for FLOW token. Double-check the crypto ticket and the name. Check the swap trade and complete the transaction.
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:
- Remember that native FLOW token will only be available on a DEX that exists on the Flow blockchain. At the time of writing, Increment was the top DEX on Flow blockchain by trading volume.
- Make sure you have FLOW tokens in your crypto wallet to pay for transaction fees. You will also need other crypto tokens in your wallet to buy FLOW tokens.
- Visit the DEX website and connect your wallet. In the DEX interface, search for FLOW token.
- Let’s say you have USDT stablecoins in your wallet and you want to buy FLOW tokens using USDT. The DEX will show you the exchange rate for the token swap.
- Once you find an acceptable exchange rate, check the gas fee quote and execute the transaction.
- Make sure to double-check the signature request on your wallet to avoid getting scammed. Once you accept the signature request from the DEX to execute your transaction, you will find FLOW tokens in your crypto wallet.
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,” – Said Messari.
Messari called Flow “a mainstay in crypto’s consumer sector,” saying:
“Today, Flow’s top applications include those based on world-class brands, such as NBA Top Shot, NFL All Day, and UFC Strike. To maintain momentum, Flow must continue to attract world-class brands, like it did in November 2023 with Disney Pinnacle, that can bring net new users and activity. Flow’s $725 million Ecosystem Fund should continue to be leveraged to incentivize growth via programs like Flow Community Rewards. All-in-all, Flow is poised to remain a mainstay in 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.
See Also:
- How to Buy Flow Crypto: A Beginner’s Guide
- Polygon Review: Beginner’s Guide to POL
- Polkadot Review 2025: Beginner’s Guide to DOT
Frequently Asked Questions
Is Flow blockchain on Ethereum?
Is Flow an L1 blockchain?
What’s Flow Playground?
Where can I buy FLOW tokens?
How do I stake FLOW?
What are the main use cases for FLOW tokens?
How can I store FLOW tokens securely?
Is Flow Blockchain suitable for NFTs?
References
- Flow Technical paper, Flow – https://www.flow.com/technical-paper
- Meet the team, Flow – https://flow.com/post/meet-the-team-alex-hentschel
- Meet the team, Flow – https://flow.com/post/meet-the-team-dieter-shirley
- Meet the team, Flow – https://flow.com/post/meet-the-team-layne-lafrance-on-trustlessness-and-grizzly-nears
- Inside story of the cryptokitties congestion crisis, Consensys – https://consensys.io/blog/the-inside-story-of-the-cryptokitties-congestion-crisis
- Network architecture, Flow – https://developers.flow.com/networks/network-architecture
- TPS, Chainspect – https://chainspect.app/compare/flow-vs-ethereum
- The Limits to Blockchain Scalability, Vitalik Buterin – https://vitalik.eth.limo/general/2021/05/23/scaling.html
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