On the back of building the first massively popular blockchain game, Dapper Labs knew there needed to be an alternative to Ethereum for Web3 gaming to take off – so they created Flow.
Flow was the first major alternative to Ethereum for high-traffic games, apps and experiences, and has powered some of the most far-reaching and mainstream-attraction blockchain apps to date.
Despite Ethereum Layer-2 blockchains taking off, and competing Layer-1 chains rising to prominence, Flow still occupies a premier position in the industry at large – but what makes Flow stand out, and how is it still innovating?
Master the topic, as we explain the Flow blockchain in 2024.
What is the Flow blockchain?
Created by Dapper Labs – the team behind the first massively popular blockchain game, CryptoKitties – Flow is a high-performance Layer-1 blockchain, designed from the ground up to support high-traffic games, experiences, and digital collectibles.
The popularity of CryptoKitties slowed Ethereum to a crawl, so Dapper Labs built Flow in response – a modern blockchain that could handle the demands of the mass-market decentralized applications.
Flow is powered by the $FLOW token, a native cryptocurrency involved in transactions, staking, and governance on the network.
On top of CryptoKitties, Flow is home to some of the most well-known blockchain-based games, apps and platforms – including officially-licensed entities such as NBA Top Shot, NFL All Day, UFC Strike and many more.
Whilst many of these are in-house products, Flow has ample developer documentation, and has partnered with external teams to ensure there’s a full ecosystem of apps, tools and platforms to support Flow-based assets.
Flow claims to be the “home of consumer Web3” – and its brand partnerships, products and growth to date would certainly make that a claim they can hang their hat on.
Why is Flow so important?
Dapper Labs have always been confident that Flow is not just an alternative solution – it’s a better solution.
Flow addresses scalability challenges with a unique multi-role architecture. Instead of splitting the network into shards, Flow divides the tasks involved in processing transactions into four specialized roles:
- Collection Nodes: manage transaction data in an efficient manner
- Consensus Nodes: order, validate and sequence transactions
- Execution Nodes: conduct the computational work required to process transactions
- Verification Nodes: ensure the network in in-sync and secure
This approach allows Flow to process a large number of transactions quickly, reliably, and securely. So far, it’s proved a strong approach in keeping the blockchain developer-friendly without sacrificing performance.
Operating on a Proof-of-Stake (PoS) system, users can either run a node or delegate their $FLOW holdings to existing nodes to earn rewards – and whilst many of Flow’s biggest products come from the Dapper Labs team, governance of the blockchain is becoming increasingly decentralized, with decision-making resting with holders.
For developers, Flow uses a resource-oriented programming language called Cadence – optimized for digital assets and smart contracts. It offers a range of tools and documentation to make building and maintaining Flow apps simpler, and hopes that with the strength of its network, Flow can be a home for mass-market Web3 apps.
The story of Flow so far
The idea for Flow came off the back of CryptoKitties rampant success in 2017. After several years of development, the Flow blockchain mainnet launched in 2020 – and it wasn’t long before the chain was making major waves.
NBA Top Shot exploded in popularity in 2021, being the first major app that brought Web3 to the attention of mainstream audiences. This popularity was parlayed into short-lived partnerships with Instagram and Facebook in 2022, and the launch of NFL All Day, UFC Strike and many more officially-licensed products.
Recent years have seen Flow face increased competition from the likes of Ronin, Base and Avalanche – although no other blockchain has yet to match its reach with mainstream audiences.
However, this mainstream attention has also caught the attention of regulators. In June 2024, Dapper Labs reached a $4 million USD settlement with NBA Top Shot holders over a lawsuit alleging that Top Shot collectibles are securities – and it remains unclear what long-term impact this could have on other Flow products.
Nevertheless, Flow continues to rise in popularity, products and partnerships – and its recent Crescendo update, which brought full EVM-equivalence and ERC-20 support, is just the latest in many boons for the Flow ecosystem at large.
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