A flow network is a conceptual framework used to understand how tokens or assets move within a blockchain environment. It consists of nodes representing accounts, wallets, or smart contracts, and directed edges showing the paths through which assets can flow. Each edge may have a capacity, which indicates the maximum amount of tokens that can be moved along that path.In practice, flow networks help analyze and optimize transactions, whether for liquidity, trading, or user interactions. By mapping out how assets can be transferred, developers and analysts can identify bottlenecks or inefficiencies in the system.Flow networks also aid in understanding complex interactions, such as how decentralized finance (DeFi) protocols communicate and exchange liquidity. This analysis can reveal insights into transaction costs, speed, and overall network stability, making it easier to improve the ecosystem’s functionality and user experience.