Why Is Flow (FLOW) The Crypto Of The Day?

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Back in 2017, the Ethereum blockchain was famously clogged by CryptoKitties. CryptoKitties was a Tamagotchi-like game created by Dapper Labs where players could collect NFT kitties to breed and trade. 

Each Kitty has a unique set of attributes making some much rarer, and therefore more valuable, than others. Players began flooding in to try to farm the most valuable Kitties to flip for massive profits. 

CryptoKitties was an early indicator of the potential of NFTs, but also the scaling issues facing the Ethereum blockchain. 

In 2020 and 2021, demand for decentralized financial services (DeFi) on the Ethereum network once again congested the network and caused the fees (known as gas prices) to skyrocket. 

When Dapper Labs was contracted by the NBA to create Top Shot (the NBA’s NFT-based trading card game), Dapper decided to make their own blockchain instead of relying on Ethereum. 

Enter the Flow blockchain and its native asset, FLOW. The Flow network uses a proof of stake consensus model which makes it more scalable and environmentally friendly at the cost of some level of centralization. 

Dapper Labs and their Flow blockchain have partnerships with the NBA, Warner Music Group, Circle, the UFC and more. Additionally, Dapper Labs has been funded by Andreessen Horowitz, Google Ventures, Samsung and many other notable figures. 

FLOW is up 9.5% at the time of writing. You can purchase flow on Crypto.com. 

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.