What is FLO?¶
FLO is a scrypt minable crypto-currency with quick transaction processing. It is based on the Bitcoin and Litecoin source code, with improvements in several areas. Florincoin also introduces a useful new feature - transaction comments. These transaction comments enable Florincoin to facilitate a number of unique applications and enhancements within the blockchain.
What is a cryptocurrency?¶
A cryptocurrency is a system of ‘value exchange’, just like any real world currency you may be familiar with. Its main difference is that it is not controlled by a central government or group and thus cannot be manipulated or restricted in the way those currencies can be.
As an example, you may buy FLO from a fiat currency exchange and use it to directly purchase a product in a different country without having to pay high exchange rates. FLO uses a wallet to store, transfer and receive FLO. This wallet signs every transaction in and out with a special private key that is unique to you. This is how the network knows that the address sending the transaction is the correct one. Think of your bank account and PIN. When you use your card (wallet), you also enter your PIN (private key), so the bank knows it was you that authorized the transaction. When you first start using FLO, your wallet will generate a private key that you must not give to anyone.
What is the blockchain?¶
The blockchain is the heart of FLO. It is where all transactions that take place are stored. It is similar to a bank ledger in that it records all the activity that happens when FLO are transferred. This ledger is able to confirm that new transactions are valid and that no fraud is taking place.
Each block in the blockchain is a record of transactions that have occurred since the last block (about 40 seconds). Every computer (node) in the FLO network shares this blockchain. Nodes in the network run an algorithm many times over a block looking for a solution with a known difficulty. This process is known as “proof-of-work” mining. Once the solution is found it is broadcast to the network. The network then verifies the solution (finding the solution is very hard, but verifying it is easy) and compensate the miners with FLO for the resources used to mine the block.