Flow is a blockchain created to make it easy for developers to build decentralised applications (dApps) using blockchain technology. To create scalability, the platform uses a multi-role architecture design.
Previously, Flow used Ethereum's blockchain, but Flow saw problems using sharding. Therefore, they wanted to develop a blockchain that can avoid the complexity of sharding. Flow believes the multi-role architecture design will improve speed and throughput while maintaining composition standards and a developer-friendly and ACID-compliant environment.
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In the end of 2019, Dapper Labs started developing a production version of the Flow network. This includes the implementation of protocols needed for node types and the integration of the consensus algorithm called the HotStuff. Various crypto libraries and signatures were also implemented. Next, the Flow Beta Mainnet was introduced to support the user experience for developers and its partners.
With Flow, you can build scalable solutions for interactive experiences, build decentralised applications in the form of dApps and build and play blockchain-based games. It is also possible to mine and trade NFTs on Flow's blockchain. An example of this is NBA's Topshot NFTS.
To create scalability, Flow uses the Proof-of-Stake algorithm. This also means you can act as a node. In other words, you deploy your Flow tokens to help the network validate transactions on the blockchain. As a reward, you get paid Flow tokens.
FLOW token is the cryptocurrency linked to the blockchain. The cryptocurrency is needed for the blockchain to work in the form of strike. This means that nodes strike their tokens in order to add new blocks to the blockchain and validate transactions. As a reward, nodes are paid FLOW tokens. In addition, FLOW tokens are used to pay transaction fees on the network.
In short, Flow uses the Proof-of-Stake consensus algorithm. What can you do with FLOW tokens:
Receive staking rewards
Pay gas/transaction fees
Perform peer-to-peer transactions
Using FLOW as collateral for stablecoin and other third-party DeFi products
Voting on future changes to the network