Try Quests to earn FLOWIn the News - 11. New Year, New Activity?(flow)
Introduction:
What Is Flow (FLOW)?
Flow is a blockchain-based decentralized ecosystem and platform with scaling solutions for interactive experiences, decentralized application projects, and blockchain-based games. The Flow network focuses on providing a scalable environment and architecture for fast transactions without congestion, to create an environment for non-fungible tokens, dApps, and games. NFTs can be created and traded as well as other cryptocurrencies, while the crucial difference is that every NFT is unique and has a different price, which is why NFTs are known as collectibles.
Flow has its own project on the network, NBA Top Shot, and as the NFT market is booming, Flow could experience rising popularity as well. Flow offers upgradable smart contracts that can be patched to fix any bugs, a finality that is achieved in seconds, and an easy way to build dApps and create NFTs with Flow’s easy-to-learn programming language, Cadence.
Flow resolves problems with scalability seen on the Ethereum platform without the use of sharding, instead of employing the efficient Proof of Stake protocol. That is how Flow enables the smooth running of operations and minimizes congestion on the network for dApps and blockchain games such as CryptoKitties.
How Does Flow Work?
Flow uses the Proof of Stake protocol to achieve scalability without the use of sharding, which is a common scaling technique for increasing speed and network capacity. Flow distributes the work on the network across the nodes that support the system, with different nodes assigned different tasks based on their technical capabilities. An increased blockchain throughput is achieved by separating non-deterministic processes (e.g. forming transactions into a block) from deterministic ones (e.g. executing that block of transactions).
In order to reduce redundant effort, Flow uses a multi-role, multi-node architecture. To make the scaling of the entire network possible in an efficient and cost-effective way, Flow breaks down the validation process into four roles, distributing different tasks to different types of nodes. To increase efficiency, the nodes split tasks and participate in the validation of every transaction on the network. The four types of nodes are Collection Nodes, Consensus Nodes, Execution Nodes, and Verification Nodes.
How Many Flow Coins Are in Circulation?
There is currently a circulating supply of 1,036,200,000 FLOW, out of a total supply of 1,410,062,299.22528 FLOW FLOW. 1.25 billion FLOW were initially created, but the supply has since increased as Flow uses inflation to pay validator rewards to stakers. However, Flow has placed a cap on monetary inflation to avoid diluting the value of FLOW tokens. New tokens are used to make up the difference between transaction fees and the guaranteed payment for validators, meaning the inflation rate will decrease towards 0% as transaction fees increase.
The number of FLOW tokens in circulation multiplied by the current price of FLOW in the market is equal to the market cap of Flow. The market cap ranks the cryptocurrency in comparison with its peers and determines its market share.
How Is the Flow Network Secured?
Flow network uses the Proof of Stake protocol and divides its architecture into four stages when it comes to validation, so each node that has a certain predetermined task only processes a portion of data in a multi-task, multi-node environment. Thanks to this mechanism, transactions and operations on the network are more efficient, and due to the fact that the validation process is divided and the data distributed across multiple nodes on the network, the Flow network is also secured.
The network relies on nodes for validation and security but also uses Human-Readable Security to protect the network users from malicious applications.
The Flow team developed a new cryptographic technique called Specialized Proofs of Confidential Knowledge. SPoCKs mean that provers can demonstrate that they have access to certain confidential knowledge without revealing what it is. Each SPoCK is specialized and cannot be copied by another prover.
Learn more about FLOW: https://kriptomat.io/cryptocurrencies/flow/what-is-flow/#:\~:text=Flow is a blockchain-based,%2C and blockchain-based games.
Questions and demands:
The holidays and New Year are often chaotic in the crypto and DEFI space, as users make a spree of new transactions and wallets as they receive (and give) some cash and coins as holiday gifts. How has this activity impacted the crypto and DEFI ecosystems? Are users creating new wallets or buying tokens with their newfound holiday wealth? Are they staking all those new tokens once they get them? Or are they selling tokens to pay for their own gifts and holiday travel? Create a dashboard that captures activity across metrics such as new user onboarding, token prices, NFT prices, or any other notable trends or events. Feel free to examine multiple chains or ecosystems in your dashboard.
📊Observations
In the first section, ==five== different metrics were examined.
The first is the "Number of Daily Transactions".
A close look at the holiday data reveals that this chart's trend shows no particular fluctuations except for ==January 11th and 12th==. During these two days, the number of transactions in the Flow ecosystem rose sharply. ==1.76 million== and ==1.54 million== are the records for the transactions on these two days.
The price-$ chart (second chart) starts its expansion on ==January 6th==. Flow's price increased from ==0.69$ (January 6) to 0.87$ (January 13)==.
This means that Flow's price has increased by about ==30%== in a week!
The active users (Third chart) have a trend similar to the "Daily Transaction number".
A small but strong increase can be seen on ==January 11th and 12th==.
The Flow ecosystem saw more than ==220,000== new arrivals over the two days.
The trend of "Daily Gas used" (Fourth graph) in Flow during the holiday period is decreasing, but as in the previous charts, there is a small spike on January ==11th and 12th==.
==6B== and ==4.85B== are the daily gas consumption records for those two days. Another peak in this chart is ==December 30== with more than ==6.4== billion daily gas used.
It can be said that the chaotic situation during the holidays affected this indicator as well.
Contrary to the above metrics, the “Average Transaction Per User" in Flow metric starts to decline with the onset of the holidays, and that trend continues to this day!
I think this metric is the only factor not affected by the chaotic situation during the holidays.
📊Observations
The second section contains 4 charts exploring 3 different themes.
The first chart is dedicated to the "Weekly Flow Transfer".
The records in this chart over the holidays show that the user's spree has no impact on this metric! and the change in this indicator shows no sensitivity to the chaotic situation during the holidays.
The second chart refers to the "Weekly Average Flow Transfer".
This metric shows the same trend as the previous chart.
The behavior of the two indicators was not affected by the cryptocurrency chaos over the holidays.
The third metric examined in this section is Token Transferring.
The comparison between "token transferring" before the holidays and during the holidays shows this:
The transfer of flow tokens on the holidays (==97%==) increased by more than ==20%== compared to other days (==76.8%==).
YDK Token has second place in this metric in "Other Days" with a share of ==14.7%==. But on the holidays, SdmToken is second with a share of ==2.26==.
These facts show that during the holidays the weekly total/average transfer has not changed, but the composition of the "token transfer" has changed during the holidays compared to the "other days".
📊Observations
6 charts were created to examine the "Stake & Unstake" metrics.
It is clear that the metrics "Weekly Stakes", "Weekly Unstakes" and "Weekly Get reward" have not experienced any notable changes during the holiday period.
They continue their regular trend and the trend is almost stable.
The average value of these indicators is the only indicator that reacts to the chaotic situation during the holidays.
As can be seen from the accompanying chart, the "Average Stakes/Unstakes/Reward" has decreased significantly in the Flow ecosystem.
The sharpest drop is in unstake operations.
That means users are saving their fortunes in the Flow ecosystem during the holidays.
Considering the price history of Flow token, this is a sensible measure and users can earn profits by raising the price of Flow during the holidays.
📊Observations
NFT's metrics investigated in the ==section 4==.
Based on our observation the following incidents has been cuncluded:
The rate of "Weekly NFT sales Volume/Number" is decreasing.
But the active users are stable and the trend of effect this factor is steady.
The number of weekly unique NFT numbers hasn't significant changes, also.
It means that the chaotic situation can affect the NFT's market in terms of Volume and Number!
Another parameter that can be changed from these conditions is:
Top 10 collection with the most volume
The sale volume of these NFTs decreases so sharply!
For example, the “Top shot” sales volume dropped from more than ==1B== to less than ==2.5 M==!
Considering that Top shot has the most changes in the top ten best-selling NFT collections, we have also examined the amount of changes in players and teams in this collection.
The volume of NFT sales for players and teams in the top shot collection is also decreasing during the holidays.
For example, the volume of "Los Angles Lakers" dropped from more than ==105M== sales on the "other days" to less than ==250K== on "Holidays!"
Or the volume of "LeBron James" decreased from almost ==80M== on "Other days" to less than ==313K== on "Holidays!"
📊Observations
The last section is about the "Token flow (Bridge & Swap) metrics".
Based on this section's graphs the Total number/volume and Average volume of transactions experience a little increase during the holidays.
The "Daily active users" is stable approximately.
It means that the flow ecosystem hasn't a especial rate in the newcomers absorption and the increase in the Number and Volume of transactions is the duty of old users in this ecosystem.
The "Daily volume in-out" graph shows that the outbound indicator is more than inbound!
It means that the users were more inclined to withdraw their assets during the holidays.
The "Daily blockchain's volume" is also changed a little during the holidays in comparison of other days.
The "Average transaction volume $" based on the "Tokens" and "Out/Inbound" represented in following.
Because the changing rate is different this metric has been visualized in two chart.
The changing of the “Average transaction volume“ in both chart is clear.
The maximum change in term of “Tokens“ is about ETH and SOL respectively.