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What is Flow?
Flow is a layer one blockchain built for consumer applications and digital assets, using proof of stake and a multi role design that aims to balance scalability, efficiency, and cost.
Category | Smart contract platform (layer 1) |
|---|---|
Launch year | 2021 |
Date added | 2021-01-27 |
Consensus mechanism | Proof of Stake |
Platform | Ethereum (ETH) |
Max supply | Unlimited |
Circulating supply | 1,655,727,852.50287644 FLOW |
Main use case | Smart contract apps and digital assets, with staking related participation |
Common tags | NFTs, staking, layer 1, flow ecosystem |
All time high | 35.97 EUR (2021-04-05) |
Crypto projects and market data can change. For important decisions, double check key facts and figures in multiple sources.
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What is Flow (FLOW)?
Flow is a blockchain and has a cryptocurrency of the same name: the FLOW token. This project is often compared to Ethereum because it has almost the same functionalities. In this article you will learn how that is, because we are going to tell you what Flow is, and where you can buy the FLOW cryptocurrency. What is Flow and how does it work? Flow is a blockchain with several functions. Namely, NFTs, Games and DeFi applications, also known as dApps, can run on Flow's blockchain. This means that Flow's blockchain can be used for different purposes, and can be compared to Ethereum's blockchain, which has the same functionalities. A dApp is a decentralized application. This means that it is an application that runs on the network of the blockchain. This is because the blockchain's network is decentralized, which means that the application running on it will be too. Not only can applications run on Flow's blockchain, but also NFTs. An NFT stands for non-fungible token, and can be compared to a cryptocurrency. The difference between an NFT and cryptocurrency, is that an NFT is unique and identifiable. For example, a euro coin is not. If you lend a 2 euro coin to a friend, it doesn't matter if you get exactly that coin back. You just want 2 euros back, and it doesn't matter which specific coin that is. It would be different if there was an identification number on this coin. You can then keep an eye on whether you get another coin back, or if it is the same one. An NFT works in the same way. It has a unique identification number, which makes it distinguishable from other NFTs.
By whom was Flow conceived and developed?
Flow was conceived by Dieter Shirley and Roham Gharegozlou. Both are also the founder of the company Dapper Labs, which means Flow is a product of Dapper Labs. This is not their only development within the crypto industry, as Dapper Labs is also the company behind the popular CryptoKitties. These are virtual cats that are stored as NFT.
What is unique about Flow?
So Flow has several functionalities, and can be compared to Ethereum's blockchain. Yet Flow has a number of features that make the blockchain unique, and distinguishable from Ethereum, for example. This most important feature is scalability. The consensus mechanism used by Flow ensures that the blockchain can process a large number of transactions quickly. Users therefore do not have to wait long for their transaction to be successfully executed, and they often pay very low fees for this. The consensus mechanism is a way in which the network of a blockchain works together. There are several such mechanisms, and each kind has its own rules and protocols. Flow uses the Proof of Stake (PoS) mechanism. This means that the network consists of validators who must put up money to be chosen as a validator. First, the validator will have to send money to a special address, and it stores the validator's money. It can be seen as a kind of deposit. If the validator does his work well, he will receive rewards, and he will get his deposit back when he stops. If he does his work badly, he receives a fine that is paid from the deposit.
What is the function of the FLOW cryptocurrency?
Flow's blockchain has its own cryptocurrency called FLOW. This is a token that has a number of functions within the project. For example, it can first be used as collateral to run a node. This is, therefore, staking out FLOW in order to receive rewards with the work done. Users of the Flow blockchain also pay their transaction fees with this token. This is because in order to use the blockchain, fees must be paid. These fees are then given as rewards to the validators. In future, the FLOW token will also be used to vote with. In this way, users will have the opportunity to determine what the future of FLOW will look like.
How can I purchase FLOW tokens?
If you want to buy FLOW tokens, you can do so at Coinmerce. On our website it is possible to buy FLOW safely, quickly and with payment methods like iDeal. First, you'll need to have an account with us, after which you can search for FLOW via the search bar on the Coins page. Once you arrive at the right page, you can choose to buy FLOW with iDeal, SEPA, GiroPay, Sofort, EPS and MyBank. If you don't have an account with us yet, you can create one quite easily. You can do so by clicking here and then filling in all your details. Once your account is validated, you can immediately purchase your FLOW tokens from Coinmerce!
Where do I store my FLOW tokens?
When you purchase FLOW from Coinmerce, you can store these tokens in the wallet associated with your account. This wallet is very secure because we store a large portion on a hardware wallet. This way we ensure that no one but you can access these tokens. If you have your own hardware wallet, such as Ledger or Trezor, it is possible to connect it to Coinmerce and move your FLOW tokens to this wallet. To do so, you must first verify your hardware wallet on Coinmerce's platform.
How and where can you stake Flow (FLOW)?
Flow's blockchain uses Proof of Stake, which allows FLOW token holders to earn a return on their tokens. For this, you don't need to set up your own validator node, as you can also stake FLOW on Coinmerce's platform. You will need to have an account with Coinmerce before you can begin to stake FLOW. By staking FLOW at Coinmerce, you can earn up to 4% in interest per year. However, you will need to stake FLOW for a minimum of 10 Euros before you can start earning this interest. During this period you cannot use the tokens for other purposes, but can stop staking whenever you want to. Besides the return you can earn, there are other reasons to stake FLOW. For example, you ensure better security of the network when you deploy your tokens for cessation. The validator nodes in Flow's network take care of processing transactions and creating new blocks. You contribute to this when you use your FLOW tokens for staking.
Staking explained for beginners
On proof of stake networks, staking generally means locking tokens so validators can help secure the blockchain. When validators participate correctly, the network can confirm transactions and keep a consistent history. For a token holder, staking is often a way to participate in network security. The exact mechanics can vary by network, but the core idea is that your tokens are tied to the network’s ability to operate. Staking also comes with risks. If you stake, you may be exposed to token price changes, and there can be lock up periods or other rules depending on the staking method. If you are considering staking, read the network documentation and understand how rewards and penalties work before you commit.
Cadence and EVM equivalence in plain language
Cadence is Flow’s purpose built smart contract programming language. Smart contracts are programs that run on the blockchain, so they can manage ownership rules, minting logic, and app specific actions. EVM equivalence refers to compatibility with Ethereum style approaches. In practice, this can make it easier for developers who already know Ethereum concepts to adapt their work for Flow. If you are a user, you do not need to code, but it helps to know that the network supports multiple developer paths. That can affect how quickly new apps appear and how easy it is for teams to port existing projects.
What a layer one is, and why it matters
A layer one blockchain is the main network that processes transactions and runs smart contracts. That means Flow is responsible for confirming activity and executing contract logic on its own chain. This matters because performance and costs depend on the layer one design. Flow’s multi role architecture is intended to help with scalability and efficiency, which can influence how the network behaves under real app usage. It also affects how developers plan their applications. If your app needs predictable execution and user friendly onboarding, the layer one design choices become part of the product experience.
Governance and community participation
Many proof of stake networks include governance mechanisms where participants can vote on certain protocol changes. Governance can range from parameter updates to decisions about how the network evolves. The provided research context does not specify Flow’s exact governance process. Still, the general pattern is that token holders can have a say through staking or related participation mechanisms. If governance matters to you, look for official documentation on how proposals are made, how voting works, and what kinds of changes can be voted on. This helps you understand what your token ownership might mean beyond price movement.
Fees, congestion, and user experience
On any smart contract network, user activity creates demand for block space. When demand is high, transactions can take longer or cost more, depending on how the network handles fees. Flow is designed to balance scalability and cost, and the multi role architecture is part of that goal. However, real world congestion can still happen, especially when popular apps or NFT drops attract attention. For everyday users, the practical takeaway is to expect that network conditions can change. If you are using apps on Flow, check how they handle fees and transaction confirmation.
Understand Flow step by step
What is Flow?
If you want to learn about Flow, read all about it in the What is overview.
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