Flux is a Blockchain-as-a-Service provider, built on its eponymous Flux blockchain. Its goal is to build the ‘next generation of decentralized computing power’ for Web3. Flux is a decentralized and cheaper alternative to traditional cloud service providers like Google Cloud, and was built to help decentralized applications scale.

The project claims to be completely decentralized, and describes itself as the ‘People-Powered Network’. Flux was initially named ‘Zelcash’, but re-branded to ‘Flux’ in March 2021. The project’s mainnet launched in January 2018. 

FLUX is the native token of the Flux blockchain. FLUX powers the whole Flux ecosystem which consists of the Flux Network (FluxNodes), a Linux-based operating system (FluxOS), a digital asset platform (Zelcore), as well as the Flux blockchain.

Flux uses its own Proof-of-Work (PoW) hashing algorithm called FluxHash, which is based on previous Equihash algorithms from ZCash and ZHash.

FLUX is a fork of Zcash. It is a fair-mined, proof-of-work cryptocurrency.

Flux claims to be the largest decentralized network in the world: its computational network is made up of over 12,000 decentralized nodes. 

About the founders

Flux was co-founded by Tadeáš Kmenta, Daniel Keller, and Parker Honeyman. According to the project’s official website, Kmenta has a background in physics, and has helped develop various blockchain technologies over the past decade, Daniel Keller has over 25 years of IT experience in the technology and healthcare industries, and Parker Honeyman previously worked for medical device start-ups in the Bay Area.

Risks of FLUX

Like an investment in other crypto assets, there are some general risks to investing in FLUX. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in FLUX is subject to the following specific risks:

Flux faces competition from other decentralized computing power platforms, as well as from more established players such as AWS and Google Cloud. Any potential success associated with FLUX depends on Flux’s rate of adoption. Furthermore, the project’s future trajectory hinges on the decisions made by a global community of FLUX token holders. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with FLUX.  Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The FLUX community and Flux co-founders are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of FLUX have no recourse to the FLUX community, Flux co-founders, or Uphold if FLUX declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing FLUX on the Uphold Platform, Uphold performed due diligence on FLUX and determined that FLUX is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

The creation, governance, usage, and design of FLUX, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 

The supply, demand, maturity, utility, and liquidity of FLUX.

Any marketing materials put forward by the FLUX social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.

Material technical risks associated with FLUX, including any code defects, security breaches and other threats concerning FLUX and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.

Legal and regulatory risks associated with FLUX, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of FLUX.