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Exploring Flux Network and the FLUX Token

Flux is a blockchain project working towards building a decentralized internet offering various blockchain as a service (BaaS), computing, development, and asset management services. By catering to both developers and end-users, the Flux network offers a secure, chain-agnostic development space - FluxOS, run by holders of the native FLUX token. As such, the Flux ecosystem exhibits true decentralization, with project governance operating through the Flux governance XDAO. Further, the global community of FluxNodes is responsible for powering the Flux network. But, what makes the Flux blockchain so special? What are the value propositions of the FLUX token?

In this article, we’ll dive deep into the Flux ecosystem, exploring the Flux blockchain, FluxNodes, FluxOS, and some of the popular applications it hosts. Moreover, we’ll look at the native FLUX coin, its roles, responsibilities, plus its relationship with the parallel FLUX token assets! 

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What is Flux Network? 

Launched in 2018 as ZelCash, the Web3 blockchain project has made several substantial developments with the aim of facilitating the foundational infrastructure and tools for a decentralized internet. In March 2021, ZelCash rebranded to Flux as a key step in the project’s roadmap. 

Flux is a decentralized Web3 ecosystem comprising a suite of scalable blockchain as a service (BaaS) and computing services, benefitting developers and end-users alike. Additionally, the Flux ecosystem offers “environment agnostic development systems” and can seamlessly transition a centralized application onto the Web3 decentralized internet. In short, the Flux ecosystem consists of the Flux blockchain, its native FLUX asset, FluxOS operating network, and FluxNodes. Plus, Flux hosts its own multi-asset crypto wallet, ZelCore, and has its own governing decentralized autonomous organization (DAO), XDAO. 

The Flux ecosystem allows developers to build decentralized applications (dApps) with flexibility over design. Moreover, developers can apply and receive funding for building dApps on Flux with the Flux labs grants scheme. Further, developers can take advantage of the Flux toolkit providing minimal development requirements for deploying dApps. Also, as an open-source, public blockchain, anyone around the world can participate and contribute to the Flux network. For example, users could choose to interact with or build permissionless dApps. Alternatively, users could contribute to the Flux ecosystem by running network nodes or mining. 

The FLUX Token 

The native asset of the Flux ecosystem is “FLUX”, available on the Flux blockchain and across several other leading chains. As the lynchpin of the Flux ecosystem, FLUX is crucial to the operations and smooth-running of the crypto project. Furthermore, as a multi-utility asset, FLUX is responsible for the incentivization and collateralization of FluxNodes. Additionally, FLUX is the unit of exchange for transactions within the Flux network. Plus, FLUX enables a decentralized form of two-factor authentication (d2FA). 

With a user-centric focus, community members can earn FLUX as a reward for their contribution in running FluxNodes or mining. As a result, with no initial coin offering (ICO), the project facilitates a fair token distribution model, with the most significant contributors reaping the largest rewards.

Using the same type of consensus algorithm as Bitcoin, proof-of-work (PoW), Flux uses its own hashing algorithm called “FluxHash” (we’ll discuss this in detail later on). Each valid block on the Flux blockchain produces 75 FLUX at the time of writing. Then, the Flux blockchain splits these rewards equally between the PoW miners and FluxNodes. In a similar process to the Bitcoin halving event, block rewards on the Flux blockchain will halve every 2.5 years. This increases the scarcity, demand, and thus the value of the FLUX asset.  

The maximum supply of FLUX assets is 440 million, a significant increase from the original 123 million maximum supply of ZEL coins. During the project’s hard fork update, all ZEL coins were converted to FLUX assets in a 1:1 ratio. The increase in maximum supply partially compensates for additional parallel FLUX token assets. While the supply of FLUX and FLUX parallel assets combined cannot exceed 440 million, the distribution of assets may vary across chains. 

Parallel Mining

As previously mentioned, FLUX is available on the Flux blockchain and across other popular blockchains. The FLUX assets that are mined on the Flux blockchain are technically coins, whereas the assets on other blockchains are FLUX tokens. Moreover, the Flux network is introducing a parallel mining feature, allowing anyone to mine FLUX tokens on other chains! Each FLUX token is fully interchangeable at a 1:1 ratio with FLUX assets from the mainchain. Holders can do so using the Fusion app, accessible via the ZelCore wallet (which we will discuss later on).

For the simple reason of “why use one blockchain when you can use many?”, holders of the FLUX asset and token can access multiple decentralized finance (DeFi) platforms across different chains.  

The Flux network aims to develop ten parallel FLUX token assets on other chains. To date, five different chains are active with FLUX token compatibility. These are Ethereum (FLUX-ETH), Binance Smart Chain (FLUX-BSC), Kadena (FLUX-KDA), Tron (FLUX-TRX), and Solana (FLUX-SOL). The remaining five have yet to be announced. 

For a deep dive on liquidity pools and mining, see our DeFi 101 course at Moralis Academy! As the leading global blockchain education suite, Moralis Academy is the best place to kickstart your blockchain education today!

Exploring the Flux Ecosystem

The Flux network is the result of a combination of protocols and parties within the Flux ecosystem working together. As a pioneering Web3 project creating the foundations of a truly decentralized internet, the Flux ecosystem is host to FluxNodes and miners using novel algorithms. In addition, FluxOS is the computational network being run by the FluxNodes and miners, offering an easy-to-use development playground for developers. Moreover, the Flux network wallet and multi-utility platform, ZelCore, is one of the key features of the ecosystem. Below, we discuss each aspect of the Flux network and ecosystem in more detail. 

FluxOS 

At the heart of the Flux network is FluxOS – a distributed chain-agnostic computational system for developers to deploy decentralized applications (dApps). As a fully open-source protocol, FluxOS reassures developers that their dApps will be live and operational at all times. This is because a global network of FluxNodes, each holding a replica of an application, is responsible for powering the network and applications. As such, if one or multiple nodes went offline for some reason, activity and operations on dApps would be unaffected. 

FluxOS is truly interoperable across multiple blockchains, enabling developers to “run any app on any chain on FluxOS”. Moreover, using “dockerization” for deploying applications, developers don’t need to learn any new programming languages. Also, developers can docker centralized applications to seamlessly transition them onto the decentralized Web3 internet. Using FluxOS, developers can design, deploy, and manage global decentralized applications (dApps) via an API (application programming interface) and UI (user interface). FluxOS takes care of the backend blockchain requirements, allowing developers to focus on the user-centric frontend aspects of their dApps.

Operating with infrastructure using the MEVN stack (MongoDB, Express.js, VueJS, Node.js), the FluxOS design uses the latest open-source JavaScript software stack. In turn, FluxOS boasts a wide array of use cases. This includes blockchain as a service (BaaS) such as hosting applications or nodes. Also, FluxOS allows developers to deploy oracles to aggregate decentralized data sets. Additionally, FluxOS enables developers to deploy blockchain games and web servers with zero friction. 

The FluxOS platform allows network participants the opportunity to interact with global applications, vote in the Flux network decentralized autonomous organization (DAO), and view resources and rewards.

FluxNodes

FluxNodes are responsible for the upkeep and maintenance of the FluxOS network. As an open-source project, anyone has the opportunity to run a FluxNode. However, running a FluxNode does require quality “enterprise-grade hardware” with a high uptime obligation. Also, as part of the incentivization of securing the network, there are collateral requirements to becoming a FluxNode. This varies depending upon the type of node one wishes to operate. Overall, this generates a global network of like-minded Flux enthusiasts providing computational resources to the Flux network using novel security mechanisms.  

Although there are three tiers of FluxNodes, they all operate using Flux’s innovative proof-of-work (PoW) hashing algorithm “FluxHash” (“ZELHASH Equihash 125_4”). FluxHash is a blend of other “Equihash algorithms from ZCash(200,9) and ZHash(144,5)”. The result is an application-specific integrated circuit (ASIC)-resistant mechanism. This means that Flux is more appealing to graphics processing unit (GPU) miners, facilitating a more equitable mining pool with no risk to decentralization. 

FLUX asset holders can choose to run one of three different types of FluxNodes, each with different requirements and FLUX token rewards. These are Cumulus, Nimbus, and Stratus. 

Cumulus has the least requirements, with 10,000 FLUX as collateral with a minimum of 2 vCore, 4 GB RAM, 50 GB HDD/SSD hardware requirements. In return, Cumulus FluxNodes receive 7.5% (or 5.625 FLUX) of the total FLUX block rewards. 

Nimbus FluxNodes require higher collateral and further hardware demands but receive a higher deterministic block reward of 12.5% (or 9.375 FLUX tokens). Stratus FluxNodes have even higher requirements. Users must collateralize a minimum of 100,000 FLUX tokens alongside operating hardware with at least 8 vCore and 32 GB RAM. In return, Stratus FluxNodes receive 30% of the FLUX block rewards or 22.5 FLUX tokens per block.

GPU Miners

The remaining 50% of the block rewards (37.5 FLUX tokens) go to the Flux GPU miners. Flux miners are responsible for processing and validating transactions throughout the Flux ecosystem. By doing so, Flux miners provide valuable computational resources to the Flux network. 

Flux miners can choose to participate in a variety of different mining pools. This includes native Flux blockchain community pools alongside mining pools created by supportive third-party teams. Each mining pool has different restrictions varying from the type of FluxNode (e.g., Cumulus, Nimbus, and Stratus) to a node’s geographic location. The currently available mining pools include the Flux Community Pool, Solo Pool, Zergpool, NLPool, etc.

ZelCore

ZelCore is one of the fundamental and most active decentralized applications (dApps) operating on FluxOS. Moreover, as a multi-utility blockchain-agnostic platform and crypto wallet, ZelCore allows users to store more than 380 different cryptocurrency assets. As a free-to-use platform, users can access various built-in “quick-swap exchanges” with the ability to buy crypto with a regular debit card! Also, as the Flux network’s designated multi-asset portfolio management platform, ZelCore employs a decentralized two-factor authentication process, or “d2FA”. 

Furthermore, holders of the FLUX token can pay for premium features available with ZelCore+. ZelCore+ offers a tiered monthly subscription service to gain access to exclusive features, including portfolio tracking, additional wallets for each asset, and access to API integrations of major crypto exchanges such as Binance and Kraken. In short, this means users can access and trade on these exchanges through the ZelCore+ app. Additionally, ZelCore+ features an aggregation feed of relevant industry and project news. Plus, users can sync their own exchange accounts and “import private keys to ZelCore lite wallets”.

The ZelCore platform offers a gateway to multiple useful applications, including the popular Fusion app. The Fusion app enables each native FLUX coin and the parallel FLUX token to “frictionlessly” transition between the Flux blockchain and other popular chains. Furthermore, the Fusion app facilitates airdrops of the FLUX token for the distribution of parallel assets and FluxNode rewards. ZelCore is a decentralized application (dApp) available on both mobile and desktop devices. This includes all iOS, macOS, Android, Linux, and Windows devices.

Flux Network – XDAO

Enabling true decentralization of the Flux network and a decentralized internet, governance of the project lies with members of the Flux governance (XDAO) decentralized autonomous organization (DAO). To become a participant of XDAO, members must hold a certain amount of FLUX tokens. Users can access the Flux governance XDAO via the main “runonflux.io” website. Here, users can view all of the open, passed, and rejected update proposals to the Flux network. Information such as the submission date, end date, number of votes required, and a breakdown of the result of the votes (i.e., Yes: 23,880/No: 780) is publicly available. 

Exploring Flux Ecosystem and the FLUX Token – Summary

The Flux ecosystem comprises the Flux blockchain and FluxNodes, enabling the computational FluxOS network. Moreover, the Flux network presents a development playground with easy-to-use Flux toolkits and simple integrations for developers to design, build, and manage decentralized applications (dApps). 

The project uses a community-centric approach to building the necessary tools and infrastructure for facilitating a decentralized internet. Furthermore, the project governance operates through a community-run Flux governance XDAO, with each member being a FLUX token holder. Additionally, providing a frictionless opportunity for current centralized applications to transition to the Web3 decentralized internet means Flux is a project to keep an eye on during the evolution of the blockchain and Web3 industries

Are you considering a career in blockchain? Well, look no further! Moralis Academy is the perfect place to start – even with no prior experience! Start with our JavaScript Programming for Blockchain Developers course to learn the basics of coding. Or, for a non-development route, see our Blockchain Business Masterclass course for how to manage a team of developers. Also, don’t forget to follow us on Twitter @MoralisAcademy! Let us know your thoughts about the Flux network, a decentralized internet, and the FLUX token!

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Written by Ivan on Tech

January 8, 2022

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