24 June 2022

Whitepaper 2.1

The Decentralized Computational Network
Blockchain-as-a-Service solutions built on the blockchain

Whitepaper
Written and maintained by The Flux Development Team
Tadeáš Kmenta, Daniel Keller, Parker Honeyman

runonflux.io

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WelcomeWhitepaper 2.1

Flux - The Decentralized Computational Network

3

Table of Contents
Introduction

6

Executive Summary

6

Unresolved Blockchain Needs

6

Why blockchain needs the Flux Ecosystem?

7

Flux Ecosystem & Core Modules
Governance POW coin & distributed ledger
Table 1: Flux chain parameters
Incentivized Distributed Enterprise Hardware

8
8
8
9

Table 2: FluxNode requirements

10

Table 3: Flux block reward distribution

11

Orchestrator, scheduler, hardware veriﬁer

12

Perfectly integrated with Flux

14

Novel partnerships & project incubator

15

Flux Economics

16

Parallel Assets

16

Official Links

17

Social Media

17

Trackers

17

FluxNode Resources

17

Exchanges

18

4Whitepaper 2.1

Parker Honeyman

Chief Operations Officer

Co-founder

Daniel Keller

Tadeáš Kmenta

Lead Developer

Co-founder

Chief Strategy Officer

Co-founder

Valter Silva

Senior Developer

Tim Bukhe

Chief Legal Council

Long-term contributorCălin Timaru

Tim Sulmone

Chief Technical Officer

Ali MalikBusiness Development

Long-term contributor

UX/UI, Graphic Designer& Front-end Web Developer
Developer, Media Contributor & Community
Moderator

Vasilis Magkoutis

Full Stack Developer

Simon Jewell

Full Stack Developer

John Hanlon

Full Stack Developer

Davy Wittock

Technical AdvisorAlžběta Kolibačová

Jeremy Anderson

Marketing & PR

Dimitris Kats

Video Developer

Kamil Piekarski

Developer, Infra Team &Community Moderator

Greg Probst

Infrastructure & Security
Engineer

Ali Mahdavi

Full Stack Developer

Ryan Deimling

Infrastructure & Wiki
Developer

Justin Troi FelipeMarketing & PR Lead

Liza Troshina

Community & MediaTom Moulton

Developer

Nolan Porter

Project Manager

Márcio Pinho

Graphic Designer

nfrastructure & Security
Engineer

Davy Wittock

Technical Advisor

Marko Oette

Moderator

Noah Weinberg
Justin Troi Felipe
Greg Droid

Marketing & PR Lead
SupportEmmanuel Steve

Dibi

Developer

Founder of Fetch

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Whitepaper 2.1

Introduction
This paper provides an in-depth description of the Flux Ecosystem and its novel subcomponents
which are released or pending future release. The Flux Team aims to make this paper accessible
to everyone by providing non-technical summaries of the entire ecosystem. Individual technicalpapers for each project component are in-process and will be released as they become available.
Note: Flux started life as “Zelcash”, or simply “Zel”. This project was rebranded to the Flux nomenclature March 27th, 2021. There are possible places in code, literature, and publications that stillreference “Zel”.

Executive Summary
The Flux Ecosystem is a suite of decentralized computing services and blockchain-as-a-service
solutions which offer an interoperable, decentralized, AWS-like development environment. Flux
utilizes a native POW (Proof-of-Work) coin to power this ecosystem, providing incentive for hardware hosters, governance on-chain, and bad actor mitigation via staking requirements for running hardware. The Flux operating system runs on top of Linux to provide the network with veriﬁed and benchmarked high-availability compute power and utilizes the blockchain to ensuretransparency in governance operations. Flux node operators can choose from three tiers of hardware requirements to stand up after providing the necessary Flux capital soft-locked in their wallet. This allows anyone to be rewarded for providing hardware to the network, from anywhere in
the World.

Unresolved Blockchain Needs
Ignoring the overwhelming number of blatant Bitcoin/currency and Dash/masternode projects
that litter the space without contributing new features or ideas, there is still a huge number ofprojects aiming to solve a small handful of blockchain problems. Competition between projects
to solve the same problem is always healthy, but this can negatively impact the speed of new
emerging technologies being introduced to the world. The next generation of blockchain technology requires answers to these problems along with a set standard approach to implementing
the technology and package its use into a digestible set of tools for current and future developers.
Flux has built these necessary development tools to speed up the usage of blockchain solutions
through creating real-world use cases and the underlying technologies necessary to build theseproducts and platforms. The Flux Ecosystem has a plethora of current and future technologies
to offer the world, and we are always working on adding more features to our offering throughpartnerships with other crypto projects in the space via strategic partnerships and our FluxLabs
incubator (see below). With these partnerships, we will help speed up delivery of usable blockchain products to the masses in easy-to-use applications

Flux - The Decentralized Computational Network

7

and products. Projects that are currently working on single, large-scale blockchain problems
can save time and resources by leveraging the Flux Network for scalable, decentralized enterprise-grade hardware resources to allow them to focus on their own projects. Partnerships will
also help bring together the fractured crypto space to create an ecosystem of complementary
products that work seamlessly together.
All blockchain teams and believers are in this together, building a new and exciting digital infrastructure to support the future.

Why blockchain needs the Flux Ecosystem?
We believe Flux is vital to the blockchain space as it provides critical infrastructure, development
tools, and industry experience necessary to quicken the pace of blockchain solution rollouts.
There are many modules to the Ecosystem, which are detailed below, that offer novel and easyto-use products for both developers and consumers. By building a complete portfolio of blockchain resources, new technologies can emerge faster with more real-world use cases and advanced features so that crypto can continue its growth towards mainstream usage. Flux allows
us to build our own novel blockchain products, for strategic partners to leverage computing
power and services they require to thrive, and for independent blockchain developers to launch
their ideas efﬁciently and effectively.

Flux is a native crypto asset with its own blockchain.
There are Flux “parallel assets” to allow the Flux governance coin to function
on all DeFi protocols including Kadena, Binance Smart Chain, Ethereum, Tron,
Solana and more, over time.

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Whitepaper 2.1

Flux Ecosystem & Core
Modules
Governance POW coin & distributed ledger

Secure blockchain
Parallel assets
Utility
Governance

Flux is a fair-mined, proof-of-work cryptocurrency that acts as a utility asset for onboarding to
the Ecosystem and powering the transaction of information across the Ecosystem. The asset also
acts as the main incentivization for operating a FluxNode: enterprise-grade server hardware powering the Ecosystem. Flux can be attained via GPU mining, trading on available exchanges, andas rewards for operating nodes. Our Ecosystem is a community-based project with a foundation that represents the community’s voice and protects the community’s wishes for the project.
Flux is a fork of Zcash. Our team strives to implement the necessary security and performance
improvements from Zcash to stay lock-step with the Zcash team as Flux continues to commit its
own improvements to the codebase. The basic coin parameters for Flux are:Mainnet Launch
Block Reward

Jan 31st, 2018

150 Flux [Launch]
75 Flux [Now]Emissions[Halving]
Mining Algorithm

Block Time [TTF]120 seconds

Reward ratio[POW/Nodes]

Consensus Type

Proof-of-Work

RPC/P2P ports

2.5 Years

FluxHash[Equihash 125.4]
50/50

16124/16125

Table 1: Flux chain parameters

Other major differences of Flux from Zcash is our commitment to remaining ASIC-resistant bycontinually changing the POW algorithm to stay ahead of ASIC/FPGA1 development and the
addition of the FluxNodes layer, outlined below.

9Flux - The Decentralized Computational Network

The critical need for the Flux distributed ledger is to provide a complete and efﬁcient asset thatcan operate seamlessly with every module in the Ecosystem. Flux gives the Ecosystem its own
master transparent ledger, recording necessary transactions of data within the Ecosystem while
also acting as a currency to purchase services and cover required transaction costs for 3rd party
application interactions. The Flux asset provides a complete set of utility-based functionality forusers to interact with our products.
Algorithm swapping would only pertain to ASIC/FPGA development that was vastly more efficient than CPU/GPUs, which has typically been the case in thepast.
1

Another critical aspect is it provides a level of control that is required for the Ecosystem to function properly. One example is the rewards aspect for operators running FluxNodes.
They are incentivized by collecting Flux, else there would be no network. As the project and network grow, the value of Flux will more than likely increase as its utility is leveraged by projects
with new use cases. In order to scale the network, the required collateral and hardware speciﬁcations for running a node will likely change to meet demand, and the utility of Flux allows the
project to adjust the network accordingly, with the involvement of the community. This adjustment could look something like doubling the hardware requirements and halving the collateralrequirements to scale the network without requiring operators to acquire more Flux (this is a
simpliﬁed example for explanation).
Flux will also be the recommended currency for commerce on the network. The team plans to
accept major cryptocurrencies and ﬁat, but customers using Flux to purchase distributed computing power will receive substantial discounts. We have decided to not exclusively require Flux
as that tactic artiﬁcially locks out many potential users, such as businesses and individuals who
require computing services but are not conducting their business in crypto assets.

Incentivized Distributed Enterprise Hardware

Always on
Massively Scalable
Earn Yield

FluxNodes are what really differentiate Flux from other crypto projects. There are many projects
that offer “masternodes” via low-powered nodes that process transactions.
FluxNodes turn this idea on its head by requiring highly-available, enterprise-grade hardware,
along with sufﬁcient Flux collateral, to operate on the network and provide real, useful computing power to the network. Operating a FluxNode is also available to anyone with the required
Flux and hardware, making the network actually decentralized both in who can run a node andthe geographic location of the nodes. At the time of writing, there are over 11500 FluxNodes inoperation spread across the World with hundreds of unique node operators.
The concept of FluxNodes emerged from a discussion about how to positively scale a decentralized application, development, and smart contract network, such as Ethereum. Projects likeLisk, Neo, and others have been able to do so, however they face considerable consolidation
away from being decentralized, instead only offering nodes and development tools to a limitedgroup. This consolidation of ownership also hampers scalability considerably, as evidenced by
Ethereum’s multi-year endeavor to ﬁgure out how to get above 25 TPS (Ethereum is aiming at
upwards of 1 million TPS, so it could be a slow road). With FluxNodes, the goal has always been
to have thousands of potential nodes operating on the network, allowing anyone to participate
and solve the scalability issue through available raw processing power.

10Whitepaper 2.1

There are three tiers of FluxNodes with different levels of required collateral and hardware speciﬁcations, outlined below. The node collaterals and requirements were revised in March/April of
2022.

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Node requirements& NamesCumulus NodeNimbus NodeStratus NodeCollateral

1000

12500

40000

Cores

>=2

>=4

>=8

Threads

>=4

>=8

>=16

EPS

>=240 EPS1>=640 EPS1>=1520 EPS1

RAM>=8 GB>=32 GB>=64 GB

Storage>=220 GB>=440 GB>=880 GBDisk Write Speed>=180MB/s>=180MB/s>=400MB/s

Bandwitdth>=25mbps up/down>=50mbps up/down>=100mbps up/down

EPS = events per second, a simple CPU benchmarking function.

Table 2: FluxNode requirements

In order to create a functional, highly-available decentralized network, Flux needs more than justthe hardware. The following sections discuss the software side of FluxNodes, and how these components will work together to create a complete blockchain solution development platform.

FluxNodes are only made possible by the Flux operating system, running as asecond-layer stack on top of Ubuntu/Debian.

Flux - The Decentralized Computational Network

11

Table 3: Flux block reward distribution

Once confirmed on the network a node is eligible for rewards. New nodes are added to the end ofa tiered node list. (eg. One list for Cumulus, one for Nimbus etc.)
When a node gets to the first position in the queue it receives the block reward for that specifictier (for ex. 5.625 Flux for a Cumulus) and go to the end of the queue.
Example: If there are currently 984 cumulus nodes on the network, and average block time is 2mthat is: 984 * 2 / 60 = 32,8h average reward payout cycle.
The nodes are also rewarded with parallel assets, for each native Flux earned a node operator
is eligible for an additional 0.1 of each of the 10 first Flux parallel assets, essentially doubling the
rewards. Parallel assets have to be actively claimed in the Fusion App inside of the Zelcore wallet.

12Whitepaper 2.1

Orchestrator, scheduler, hardware veriﬁer

Guaranteed Performanche
Docker Built-in
Load-Balanced

Flux is the “brain” of the FluxNodes and the Flux Computational Network. It is an
open-source MEVN stack built from scratch by the Flux Team which acts as a second layer operating system to complement the base Linux OS running on all FluxNodes. An operational network of decentralized computing power is one of the core modules to the Flux Ecosystem, providing the ability for Flux and 3rd party developers alike to run their applications on a fair-priced
network with no single point-of-failure. Since FluxNodes are operated in a decentralized mannerby individual Flux holders, and geographically-spaced all over the world, developers can rest
assured that their applications are accessible by users at all times and locations. Deployment ofapplications, websites, databases, etc. will rely on “dockerization” with our current strategy. The
advantages of Docker apps are discussed below.
Flux acts as the master coordinator for launching dockerized applications, sidechains, andasset layers. It handles the deployment of the apps, manages the resources of each FluxNodeto balance hardware usage, and communicates between the FluxNodes to provide real-time
computing metrics. This connectivity also helps ensure each FluxNode is meeting the minimum
system requirements by active benchmarking to ensure fair operator rewards and a robust
decentralized network. If you are familiar with Docker, Kubernetes, and other container-type
platforms, then you’ll feel at home with the Flux Computational Network. Flux then gives Docker
app builders the ability to deploy their applications onto the Flux Network at a lower cost to thedeveloper than renting virtual or dedicated servers.
The Flux Team chose to build Flux from the ground up to provide software that was perfectly tailored to the FluxNodes Network, which will allow for faster iterative development, easier
maintenance of the codebase, and a wider range of community contributions to the project byenabling JavaScript developers to take part. This ease-of-use approach will greatly assist quick
deployment of sidechains, asset layers, 3rd party apps, smart contracts, basically anything thatcan be built into a container. All this is achievable using a relatively new concept of the MEVN
stack mentioned above, which consists of MongoDB (popular databasing program), Express(web framework in JS), Vue.js (framework for JS applications), and Node.js (cross-platform JS
runtime environment). Along with Docker for containerizing applications, almost any developer
can create an application that will run smoothly on the FluxNodes Network.
Each FluxNode will have a standardized web portal/GUI, viewable on the web, but with locked
down access from unauthorized entry by utilizing ZelID. Only authenticated users can accessthe Admin privileges by logging into their FluxNode using Zelcore. When a user attempts to log
into a FluxNode, a signed message is generated by Zelcore and sent to the FluxNode for authentication and only authenticated ZelID’s can be granted access. These authorized users (FluxNode operators) will also be able to update the Flux Daemon and Flux from the web portal, so
no more needing to log into your server and running code/scripts to update to current releases,
just click a button.
Flux leverages a tiered-privilege API system, allowing it to lock down access to FluxNode anddaemon functions that should not be open to the public. Locking down access by user type allows the Network to be utilized by developers and app users without compromising the security
and stability of the FluxNode itself. There are 4 levels of privileges currently employed by Flux:

Flux - The Decentralized Computational Network

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1.

Public level — no sign-in required, provides very basic API access to public chain information.

2.

Zelcore User — requires a signed message from any ZelID, this level is made available for
future services that would require a ZelID/Zelcore wallet to access.

3.

Flux Team User — requires a signed message from a unique set of ZelID’s, locking out thestandard user. This level is critical for allowing the decentralized network to choose deployment requirements and manage FluxNode resources.

4. FluxNode Owner/operator — Top level privilege only accessible with a signed message fromthe owner’s ZelID. Owner can update their node software and future privileged commands/
information, including assigning privilege to other Zel ID’s at owner’s discretion.
HTTP requests via URL to access daemon RPC are protected by this tiered-privilege hierarchy.
This is one major difference of Flux vs. other RPC-over-HTTP or Bitcore solutions in that the FluxNode is protected against malicious calls to the daemons and server hardware.
This foundation laid out by Flux allows deep integration of the Flux chain. The daemon is accessible via API commands in the URL bar; some informational commands are open to the public,
such as validateaddress, while commands to generate a transaction or query more private commands are locked down to the authenticated ZelID’s. Integrating the Flux daemon with Flux
allows the computing network to seamlessly interact with the chain p2p network and provide afoundation for interacting with future sidechains, smart contract platforms, and asset layers.
More technical details and developer resources will be discussed in a supplementary blackpaper focused solely on the Flux Computational Network. Release of blackpaper is TBD.

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Whitepaper 2.1

Perfectly integrated with Flux

Wallet for all your assets
Desktop & Mobile
DeFi Gateway

Zelcore is the multi-asset crypto wallet and platform. It offers custody management of over 250
cryptocurrency assets, along with over 25,000 digital assets on the Ravencoin, NEO, and Ontology asset layers. Zelcore also offers built-in trading services of major centralized exchanges (Binance, Kraken, Bittrex) and quick-swap services (CoinSwitch, InstaSwap, Changelly, Kyber, etc.).
This allows users to mine, store, transact, and exchange a huge number of crypto assets within
the same secure, easy-to-use application.
Zelcore is available for Windows, MacOS, Linux, and mobile versions for iOS and Android. Upgrading and maintenance of Zelcore is made easy by having a single codebase for each device
type and has a strong team of beta testers checking each release.
The platform utilizes a unique accounts system scheme based on a username and password
combination, secured by salts and additional security features. The username/password scheme
was chosen to provide convenience for the end user compared to other wallets that rely on impossible-to-remember combinations of random words or characters. These mnemonic setups
are very secure but not convenient enough to act as the login for people who use their crypto
wallets every day. To secure Zelcore’s username/password approach, additional layers of security
are available including second-layer passphrases and biometrics, and our unique decentralized
two-factor authentication system. This entire identiﬁcation and authentication platform is called
ZelID, described below.
Zelcore acts as a frontend for the Flux Ecosystem. The Zelcore Team is always adding new
assets and features for users, and as more Ecosystem modules roll out, Zelcore will allow users
to interact with these features. Some examples are: creating metrics dashboards for FluxNode
operators, a digital marketplace for apps and services running on FluxNodes, and a payments
gateway for purchasing computing services on the network.
Upcoming features include aggregated crypto and ﬁat-ramp pricing with transparent costs,
native integration of the upcoming Kadenaswap decentralized exchange, yield and staking for
Flux and other assets, addition of lending protocols and next-gen smart contract negotiations.

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Flux - The Decentralized Computational Network

Novel partnerships & project incubator

Industry Experience
Networking
Complete toolset

FluxLabs is an incubation and acceleration program of Flux Technologies for blockchain andtechnology-based projects with a focus on early stage start-ups in the emerging blockchain andcryptocurrency industries. The program focuses on three main functions:1.

Beneﬁcial speciﬁc use-case and adoption in the blockchain and cryptocurrency space.

2.

Structured brainstorming workshops, community events, and raising awareness of both Fluxand FluxLabs projects together.

3.

Facilitate connections with like-minded projects and co-marketing for new technologies
and partnerships.

FluxLabs speciﬁcally focuses on projects that add beneﬁcial and functional technology to theblockchain space. All projects invited to join FluxLabs incubation program need to be operational in full developmental phase and have a reviewable business model. FluxLabs is creating
one of the best communities and networks of blockchain technology entrepreneurs, experts,
mentors and investors. This network is leveraged to support and develop startups in growing
their business, strengthening their commercial presence and increasing outreach and competitiveness in local, regional and international markets. The Flux Ecosystem beneﬁts from each andevery partnership as diverse technologies are adapted for and integrated into the Flux Project.
Projects brought under FluxLabs also receive asset management integration into Zelcore, alongwith solicited advice on many aspects of developing a complete, functional project and business. General FluxLabs features include:•

Asset integration in Zelcore for Windows, MacOS, Linux, iOS, and Android.

•

Accelerate legal, security, business and operations if desired.

•

Focus on the development of chosen platforms and guidance through iterative build processes including integration in Zelcore.

•

Guidance to other partners in the space to grow their project and build logical partnerships.

FluxLabs services are included in the Zelcore integration price for early projects that meet set
standards and are accepted for the incubation and acceleration development program. Zelcore
integration and FluxLabs assistance is provided at very competitive rates, unlike other services
in the space that have a large reach but require a substantial amount of coins for manipulative
market making and advertising schemes that do not necessarily beneﬁt the applicant project.

16Whitepaper 2.1

Flux Economics

Please note, the maximum circulating supply at any given time will never exceed 440 million. This is due to, when an asset moves from chain to chain, thecorresponding amount is locked on the source chain, to free up the amount on the target chain.
Example: You move 2000 Flux from Flux-BSC to Flux native. This results in 2000 Flux-BSC being locked and 2000 Flux (native) being unlocked. The end result is,although 2000 Flux has moved between chains, the net impact on maximum circulating supply is zero.
For more details on parallel assets, and how they work, please see https://fluxofficial.medium.com

Parallel Assets
We have made the Flux asset more accessible, trade-able, and interactive with the DeFi spaceby doing strategic airdrops of Flux-based assets on other major chains. Snapshots are taken of
current native Flux holders’ addresses and the new tokens are claimable via the “Fusion” app
within Zelcore. Furthermore GPU miners and FluxNode operators earn parallel assets on top of
their regular block rewards through parallel mining.
At the time of writing parallel assets have been released on Kadena, Ethereum, Binance Smart
Chain, Tron and Solana.The parallel assets are tokens on those chains and can leverage DeFi andany other options available on a specific chain. More parallel assets and blockchain integrations
will be released as new DeFi products emerge and stabilize into reputable service platforms.
To participate, crypto users only need to be holding Flux. Flux staked for FluxNodes is automatically captured in the snapshots and available for claiming within Fusion.

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Flux - The Decentralized Computational Network

Official Links
Websiterunonflux.io

FluxLabs/fluxlabs.html

Flux Store

MediumDocumentation
Zelcoregotflux.store/cart

XDAO/xdao.html

Github/RunOnFlux

Block Explorers

fluxofficial.medium.com
wiki.runonflux.io
zelcore.io
explorer.runonflux.io
explorer.flux.zelcore.io

Social Media
Twitter/RunOnFlux

Twitch/runonflux

Zelcore Twitter/zelcore_io

Tiktok/@flux_runonflux

Discord/runonflux

Bitcointalk

Facebook/runonflux

Telegram

Instagram/flux_runonflux

RedditLinkedin/company/flux-official

YoutubeCoinGecko/en/coins/flux-zelcash

MyCryptoStats/index.php?topic=2853688.0/runonflux/r/Flux_Official/FluxLabs

Trackers

CoinMarketCap/currencies/zel

CrytoCompare/coins/flux/overview

Delta

delta.app/en

CoinLib

coin/ZEL/Zel

CoinCodex/crypto/flux2/

WalletInvestor/currency/flux

FluxNode Resources
Dashboardmycryptostats.com

home.runonflux.io/dashboard/overview

18Whitepaper 2.1

Exchanges
Coinmetrogo.coinmetro.com

Kucoinkucoin.com
goonus.io

Binancebinance.com

Onus

STEX

app.stex.com

Gate.io

CoinxEx
PancakeSwap
HotBitcoinex.com
pancakeswap.finance

TRADEOGREUNISWAP

gate.iotradeogre.com
info.uniswap.org

hotbit.io

Tokoksafe.trade

Kaddexswap.kaddex.com

Citex

trade.citex.co.kr

BitForex

bitforex.com

Bittrexglobal.bittrex.com

Bitkanbitkan.com

ZT Global

ztbzh.net

trade.mandala.exchange

CoinDCX

coindcx.com

Pionexpionex.com

StealthEX

stealthex.io

Attlasattlas.io

SafeTrade

MandalaTokocrypto
ExchangeAssets
LBank
SerumDex
Bolsadx

tokocrypto.com
exchange-assets.com
lbank.info
projectserum.com

BitrueSevenb
SimpleSwap
HitbtcSWFT Blockchain
BKEX

tokok.com

bitrue.com

sevenb.io
simpleswap.io
hitbtc.com
allchainbridge.com
bkex.comCoinonecoinone.co.kr

instaswap.io

Changellychangelly.com

SWAPSPACE

swapspace.co

bitpanda

bitpanda.com

atomicDEX

atomicdex.io

AAX

DIGIFINEX

digifinex.com

Binance.us

binance.us

swyftx.com

wazirxwazirx.com

aex.com

Bitgetbitget.com

InstaSwap

swyftxAEX
crypto.com

exchange.bolsadx.lat

crypto.com

aax.comFlux - The Decentralized Computational Network

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Thank you