Meet Fantom – a Layer 1 next-generation blockchain. This high-performance smart contracts platform is able to create multi-layer scalable computational infrastructure with the help of its virtual Fantom Opera machine. In this guide, we will discuss what makes Fantom a lucrative platform for dApp development.
What is Fantom (FTM)?
Fantom (FTM), initially released in late 2018, is a high-performance platform with a shift in focus on providing powerful scaling solutions. The network is often described as “a network of networks” – each dApp launched within the Fantom system runs on its own blockchain network with specific governance rules and tokenomics.
This smart contract platform utilizes its own variant of the Proof-of-Stake consensus – Lachesis. This asynchronous byzantine fault-tolerant consensus is believed to be more performant compared to the Classical and Nakamoto models, namely due to its near-instant finality.
Furthermore, Fantom nodes are able to record the chronology of “event blocks” and transactions - thanks to the Directed Acyclic Graph (DAG) data structuring technology contained in each independent node within the network. As the end result, finalized blocks are composed of confirmed event blocks.
The Fantom network is both open-source and open-participant. What’s more, the FTM ecosystem has evolved into one of the most popular blockchains in the DeFi industry. It addresses issues related to the infamous blockchain trilemma - lack of decentralization, scalability, and speed in other platforms - and implements new ways to solve them successfully.
What makes Fantom (FTM) special?
Fantom is majorly used by users to provide top-quality scaling solutions. As mentioned above, the network has implemented several helpful technologies, such as leaderless Proof-of-Stake, EVM compatibility, DAG, etc.
Let’s dive deeper into the basics behind the Fantom blockchain design.
Lachesis consensus algorithm
Lachesis helps developers in creating P2P applications with no need to launch a networking layer. This PoS variant’s asynchronous design is intended to provide greater freedom for users - given the fact that they are able to handle commands at various times. There are also no master nodes - thus, the consensus is leaderless. Furthermore, Lachesis can operate under all conditions - even if some of its nodes start acting with malicious intent. Besides, the algorithm is incredibly fast - it can confirm transactions in 1-2 seconds.
N.B. Check out more about Lachesis by following this link
The Fantom Opera mainnet provides creators with Ethereum Virtual Machine (or EVM)-compatible toolkits. This makes it extremely easy to port Ethereum-based dApps over to the FTM ecosystem.
Besides, the native token of the Fantom network - FTM - is available as both an ERC-20 and BEP-20 token standard, which means that both avid Ethereum and Binance users can utilize the token in their projects.
Directed Acyclic Graph (DAG)
The Directed Acyclic Graph, or simply DAG, is comprised of vertices and edges, which make the blockchain resemble a graph rather than a chain.
In August 2022, Fantom introduced a new DAG 2.0 model designed to boost the speed and security of the network. The platform is able to confirm new blocks by utilizing past event blocks stacked in a DAG.
What is FTM token?
The FTM token acts as the utility token utilized within the network for various purposes, such as payments, safeguarding, staking, etc.
The initial coin offering, held in June 2018, boost-started the development of the platform, as 40% of the total 3.175 bln FTM tokens was sold, amounting to $369.65 mln collected as a result.
- Fantom users are charged a fee of roughly $0.0000001 when performing payments with the FTM token;
- FTM participates in on-chain voting processes, therefore the token is an important determinator when it comes to governance and other network-related decisions;
- FTM staking is deployed to secure the Fantom ecosystem and receive FTM tokens as a reward in return. Each validator is required to hold at least 3,175,000 FTM to receive eligibility;
- FTM is used to pay for network fees related to deploying smart contracts, creating new platforms, etc. Fantom is known to charge comparatively low fees in comparison to other similar platforms.
How to buy Fantom (FTM)?
FTM is available on all major cryptocurrency exchanges, such as Binance, Kraken, Bitfinex, Uniswap, Sushiswap. You can buy FTM using BTC, ETH, USDT, or BNB. Check out the full list here.
Is Fantom better than Ethereum?
The FTM offers lower gas fees for developers and users. Thanks to the platform’s unique structure, it is much cheaper to conduct transactions and execute smart contracts via Fantom.
Is Fantom an Ethereum killer?
Yes, FTM is considered an Ethereum killer due to its contribution to the industry of DeFi development.
Does FTM run on Ethereum?
No; however, the platform is fully compatible with the Ethereum Virtual Machine.
How fast is Fantom?
The platform boasts impressive transaction speed. FTM can process transactions in 1-2 seconds
Is Fantom a DeFi?
No. Fantom is a smart contract platform designed as an Ethereum competitor in providing top-tier scaling at a much more affordable price. However, the network is often used to access the DeFi tools.
Future of Fantom
Fantom is a promising well-thought-out network. With its easy-to-use interface, low fees, and user-friendly tools, it has the potential of expanding into an even bigger platform in the future.
What makes experts back up this claim is the fact that Fantom stays up-to-date with the latest developments in the blockchain industry and regularly puts up new proposals for voting. For example, it has recently implemented a new update, allowing lower validating and staking rewards to correspond with the market’s current prices:
📢 A governance proposal to lower validator and staking rewards has passed ✅October 5, 2022
With data proving strong network adoption and dApp activity, this successful proposal will align staking rewards to better resemble the currently available market-rates.
If you want to integrate Fantom shared or dedicated nodes into your projects, please log in to your GetBlock account or refer to GetBlock’s customer support page.