What is 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, Bancontact, 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 [LINK TO REGISTER ]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.