What is Flux?

What is Flux?

Flux is a decentralized cloud infrastructure built on top of a purpose-built, proof-of-work blockchain. It provides a fully decentralized alternative to centralized cloud services like AWS, Google Cloud, and Azure by enabling anyone with qualifying hardware to operate a node and contribute computing resources to the network. In return, node operators earn $FLUX rewards for keeping their machines online and serving workloads.

The project launched in 2018 under the name ZelCash and rebranded to Flux in 2021 to better reflect its mission of building Web3 infrastructure. Today, the Flux network consists of thousands of globally distributed nodes managed by independent operators, making it one of the largest decentralized compute networks in the world.

The Flux Blockchain

At its core, Flux operates its own Layer-1 blockchain that uses a modified Equihash proof-of-work consensus algorithm called ZelHash (Equihash 125,4). This algorithm is ASIC-resistant by design, encouraging a fair mining landscape dominated by GPU miners. The chain produces a new block approximately every 2 minutes, with each block distributing freshly minted FLUX to both miners and node operators.

The blockchain serves as the settlement and coordination layer for the entire Flux ecosystem. It records node registrations, collateral locks, application deployment specifications, and governance votes. All node-related transactions, including collateral locking and reward payouts, are handled natively on-chain.

FluxOS — The Decentralized Operating System

Every Flux node runs FluxOS, a lightweight, Linux-based operating system layer that sits on top of the node's host OS. FluxOS is responsible for managing Docker containers, monitoring hardware resources, communicating with the blockchain, and orchestrating the deployment and scaling of decentralized applications (dApps). When a user deploys an app to the Flux network, FluxOS determines which nodes have sufficient available resources, deploys the containers, and continuously monitors uptime.

FluxOS exposes a comprehensive API that allows developers to interact with the network programmatically. Applications are defined using Docker Compose-style specifications and can include any containerized workload — web servers, databases, machine-learning inference, blockchain full nodes, and more.

The $FLUX Token

The $FLUX token is the native cryptocurrency of the Flux ecosystem and serves multiple critical roles:

• •Node Collateral — Operators must lock a specified amount of FLUX as collateral to register and run a node. The amount varies by node tier (1,000 / 12,500 / 40,000 FLUX).
• •Block Rewards — Miners and node operators receive FLUX as compensation for securing the network and providing compute resources.
• •App Deployment Payments — Users pay FLUX to deploy and maintain applications on the decentralized cloud. Fees are determined by the resources an app consumes (CPU, RAM, SSD, bandwidth).
• •Governance — FLUX holders can participate in on-chain governance proposals, voting on protocol upgrades, economic parameter changes, and ecosystem fund allocations.

Parallel Assets & the Fusion Bridge

To maximize liquidity and accessibility, FLUX exists as a parallel asset on eight blockchain networks in addition to the native Flux chain. Through the Fusion cross-chain bridge, users can seamlessly convert FLUX between these networks at a 1:1 ratio (minus a small network fee):

Governance & the Flux Foundation

The Flux Foundation is the non-profit entity that oversees the development and growth of the Flux ecosystem. A portion of every block reward (3.5% of the node allocation) is directed to the Foundation to fund ongoing development, marketing, partnerships, and community grants. The Foundation operates transparently and publishes regular financial reports.

On-chain governance allows FLUX holders and node operators to propose and vote on changes to the protocol. Proposals can cover economic parameters (reward splits, deployment fees), technical upgrades (new FluxOS features, consensus changes), and ecosystem initiatives. This governance model ensures that the network evolves according to the will of its stakeholders rather than any single centralized authority.

Real-World Use Cases

1. 1

   Decentralized Web Hosting

   Websites and web applications can be deployed across the Flux network for censorship-resistant hosting. FluxOS automatically distributes instances across geographically diverse nodes, providing built-in redundancy and high availability without relying on any single data center.

2. 2

   AI & Machine Learning Compute

   Flux nodes equipped with GPUs can serve AI inference workloads, model training tasks, and data processing pipelines. The network's GPU marketplace allows developers to rent decentralized GPU compute at competitive rates compared to centralized providers.

3. 3

   Blockchain Full Nodes & Validators

   Many blockchain projects run their full nodes, RPC endpoints, and validators on Flux infrastructure to achieve greater decentralization. Running infrastructure on Flux means no single cloud provider can take the network offline.

4. 4

   Enterprise & Developer Tools

   Flux supports running databases, API gateways, CI/CD pipelines, and other developer tooling in a decentralized manner. Any Docker-compatible workload can be deployed to the network with minimal configuration changes.