Following the success of CryptoKitties, developers at Dapper Labs recognized that for the advancement of Web3 gaming, there needed to be an alternative to Ethereum—this led to the creation of Flow. Flow emerged as the first significant challenger to Ethereum, catering to games, applications, and digital experiences, and has been instrumental in supporting many of the most well-known blockchain applications to date. While Ethereum’s Layer-2 solutions have gained momentum and competing Layer-1 blockchains are becoming more prominent, Flow remains a leader in the sector. What sets Flow apart, and what keeps it as the benchmark in the industry? Here’s an extensive overview of the Flow blockchain as we head into 2024.
### What is Flow?
Developed by Dapper Labs—the creators behind CryptoKitties—Flow is a Layer-1 blockchain crafted to accommodate high-traffic games, immersive experiences, and digital collectibles. The surge in popularity of CryptoKitties exposed significant limitations in Ethereum’s speed, reliability, and transaction costs, prompting Dapper Labs to construct Flow, a next-generation blockchain capable of meeting the rigorous demands of their successful game. At the core of Flow is the $FLOW token, a native cryptocurrency that facilitates transactions, staking, and governance within the network. Flow is not only home to CryptoKitties but also hosts several leading blockchain-based games, applications, and platforms, including licensed titles such as NBA Top Shot, NFL All Day, and UFC Strike. While many of these projects are developed internally, Flow provides extensive documentation for external developers and collaborates with third-party teams to cultivate a comprehensive ecosystem of applications, tools, and platforms based on Flow. Flow positions itself as the “home of consumer Web3,” and its partnerships, product offerings, and overall growth lend credibility to this claim.
### How does Flow work?
Dapper Labs views Flow not merely as an alternative but as a superior solution. The blockchain employs a distinctive multi-role architecture. Rather than dividing the network into shards, Flow categorizes transaction processing into four specialized roles: Collection Nodes, which manage transaction data; Consensus Nodes, which order, validate, and sequence transactions; Execution Nodes, which handle the processing of transactions; and Verification Nodes, which ensure the network remains synchronized and secure. This architecture enables Flow to efficiently process a high volume of transactions reliably and securely, proving effective in maintaining both developer-friendliness and robust performance. As a Proof-of-Stake (PoS) network, users can operate a node or delegate their $FLOW holdings to existing nodes to earn rewards. While many of Flow’s key products originate from Dapper Labs, governance of the blockchain is progressively decentralizing, with decision-making power transitioning to token holders. For developers, Flow features a specialized programming language called Cadence, which is tailored for digital assets and smart contracts, providing a suite of tools and documentation to streamline the development process with the ambition of making Flow a primary hub for mainstream Web3 applications.
### The History of Flow
The concept for Flow was born after the triumph of CryptoKitties in 2017, leading to the launch of Flow’s mainnet in 2020, which quickly gained traction. NBA Top Shot captured widespread public interest in 2021, becoming the first significant Web3 application to achieve mainstream recognition. This surge in popularity resulted in temporary partnerships with social media giants Instagram and Facebook in 2022, along with the introduction of NFL All Day, UFC Strike, and numerous other officially-licensed products. In recent years, Flow has faced heightened competition from platforms like Ronin, Base, and Avalanche; however, none have yet matched its mainstream appeal. The journey has not been without challenges. In June 2024, Dapper Labs settled a lawsuit with NBA Top Shot holders for $4 million USD, stemming from allegations that Top Shot collectibles qualify as securities. The implications of this settlement on other licensed products on the Flow platform remain uncertain. Despite these hurdles, Flow continues to gain traction, with its recent Crescendo update—introducing full EVM (Ethereum Virtual Machine) support—marking yet another success for the broader Flow ecosystem.
