Dapper Labs has announced that community validators are now responsible for 68% of the consensus nodes on the Flow blockchain network. This marks a significant step in the progressive decentralization of the network that underlies NBA Top Shot, which has seen over $750 million in secondary market trading volume. As the company explores new NFT projects, it is actively working to decentralize the Flow network further.
A representative from Dapper Labs stated that Flow is now “fully open and controlled by the community,” with the company managing less than one-third of the active consensus nodes that support the proof-of-stake network. According to their claims, 68% of these nodes are operated by independent Flow validators.
Flow’s proof-of-stake network functions differently compared to the proof-of-work systems employed by Bitcoin and Ethereum. Instead of relying on energy-heavy mining processes, Flow utilizes validators who stake a substantial amount of FLOW tokens and earn rewards for transaction processing.
Decentralization plays a vital role in ensuring the security of blockchain networks, which typically function across numerous computers worldwide. If one entity were to hold the majority of mining power or validator nodes, it could potentially manipulate transactions or engage in double-spending.
Dapper Labs, which is closely tied to the success of Flow, currently operates 32% of its consensus nodes. Layne LaFrance, the Flow product manager, explained that the company has reduced its involvement to less than one-third of the nodes, promoting greater community participation and enhancing the network’s security metrics.
Flow was developed by Dapper Labs after their initial NFT project, CryptoKitties, nearly overwhelmed the Ethereum blockchain in 2017 due to high demand. The Vancouver-based firm recognized that Ethereum might not support its aspirations for crypto collectibles, prompting them to create a tailored proof-of-stake network capable of handling more transactions at lower costs.
The decentralization of Flow has been a topic of discussion since the launch of NBA Top Shot, especially following its surge in popularity earlier this year. LaFrance noted that the increase in validators has resulted from both organic growth and Dapper’s initiatives to broaden the network’s distribution.
Uniquely among blockchain platforms, Flow divides its proof-of-stake model into four roles for validators: Collector, Execution, Verifier, and Consensus nodes. This structure allows for increased community involvement without compromising security or performance, as asserted by LaFrance.
Expanding decentralization while facilitating Flow’s role as an NFT platform has been a gradual process. LaFrance emphasized that although some critics may argue against the gradual distribution from more centralized beginnings, most developers engaged with Flow understand that the evolution takes time.
“Trade-offs made for the sake of user experience and safety may temporarily affect decentralization from a purist viewpoint,” she explained. “The developers we collaborate with largely recognize this and are committed to ensuring an excellent experience for their users.”
In addition to broadening node distribution, Dapper Labs revealed that it no longer needs to conduct security reviews for decentralized applications launching on Flow’s mainnet, with other firms, including Quantstamp, taking on this responsibility. Developers can now create their own permissionless access nodes without needing prior approval.
Dapper is also expanding its NFT platforms, including an upcoming NFL-themed project similar to Top Shot, while partners are preparing their own NFT marketplaces on Flow, such as Genies for cartoon avatars and Jambb for stand-up comedy NFTs. According to Dapper, over 600 companies are currently building on the Flow network.
Moreover, Dapper recently acquired the virtual influencer startup Brud to help introduce Flow-based decentralized autonomous organizations (DAOs) to a broader audience. While Flow began its journey focusing on NFTs, it is evolving into a general-purpose network with potential for diverse applications.
The future trajectory of Flow is not solely in the hands of Dapper Labs. Although the company established Flow, it is now part of a larger community that will shape its ongoing development. Effectively communicating this philosophy to the broader crypto community may be just as crucial as sharing technical details about its decentralization efforts.
“Ultimately, the true test is whether Flow can sustain itself without Dapper Labs. The answer is a resounding yes,” LaFrance concluded. “We are witnessing an array of impressive projects emerge, all of which have a vested interest in the ecosystem’s value and would be capable of continuing to operate Flow even if we were to disappear.”
Editor’s note: This article was updated after publication to clarify that Dapper Labs now operates 32% of Flow’s consensus nodes and not the total nodes.
