Many blockchains are competing to solve the trilemma of Ethereum and Bitcoin; these include speed, decentralization, and scalability. However, those who build and use Ethereum based protocols know how high the transaction fees can cost due to congestion on the blockchain. These problems have led to layer one blockchains like Solana, Cardano, Fantom, etc. Today we will explain what is Fantom and how it works.
How is Fantom different from other Layer 1 platforms, and what do they have differences that make investors and crypto enthusiasts call it Ethereum killer. Of course, every Layer 1 blockchain is out there to kill Ethereum, but they are more of the same. So what is Fantom doing differently? Let’s find out.
What is Fantom?
Fantom is an open-source, decentralized smart contract network powered by a Direct Acyclic Graph, a new alternative to blockchain technology.
It uses graphs instead of blocks to achieve finality and complete transactions in less than two seconds. The Fantom Network can complete up to 4500 transactions in a second.
They also created a consensus mechanism known as “Lachesis, ” a combination of proof of stake and Asynchronous Byzantine fault tolerance.
FTM is the native token of the network, and it is used for staking and governance on the network. Validators on the Fantom network can verify transactions independently, and you can be a validator by staking one million FTM tokens.
You can also contribute your FTM tokens to a trusted validator to gain rewards from the network.
Hedera Hashgraph shares similarities with Fantom; as is also powered by DAG technology.
What is the Purpose of Fantom?
Fantom is a smart contract network that allows developers to create decentralized applications. Nobody controls the applications; only smart contracts are needed to power a decentralized app.
Fantom also allows users on the network to develop, mint, and buy or sell Non-Fungible tokens. Some decentralized protocols on the Fantom Ecosystem are already being used to stake Fantom and mint fUSD, the stable coin pegged to the US dollar. Users on the Fantom network also have access to lending and borrowing using fLend.
There are currently some dApps on Fantom, including Spookyswap, Multichain, Solidity, Geist Finance, and Fantom.
Using the protocols will allow you to stake, mint, lend or borrow on the Fantom network. In addition, the Fantom blockchain is also compatible with Ethereum Virtual Machine (EVM). Therefore, developers can move their decentralized apps from Ethereum to Fantom quickly.
The most significant purpose of Fantom is to make transactions faster while keeping security and decentralization intact. The network also provides incentives for developers willing to build decentralized apps that will benefit users of the Fantom network.
Who are the Founders of Fantom? (History)
The Fantom Foundation was created in 2018, but the Fantom mainnet OPERA was launched in December 2019. The foundation was formed by South Korean Computer Scientist Dr. Ahn Byung.
The Fantom team is headed by Quan Nguyen, the Chief Executive Officer. In addition, they have a couple of professional developers who are experienced in blockchain development.
They also have professional scientists, researchers, designers, marketers, and entrepreneurs. The Fantom team consists of people contributing their expertise from different parts of the world.
Validators secure the network, and it is open for anyone to participate and become a validator. Hedera depends on the governing council members for validating transactions on their network. Fantom holders can also use their tokens to participate in governance decisions.
The Fantom Foundation is more focused on Decentralized finance, and they have a lot of Decentralized exchanges for staking, lending, and trading NFTs. Some of the top platforms include Solidly, Spooky Swap, Curve, and Paintswap.
Who are Fantom Top Investors?
The Fantom network has over 11 investors, and they have been able to raise over $40 million from two funding rounds organized in 2018. In addition, they have some top investors backing the project, including Signum Capital, Nirvana Venture, JRR capital, Bibox Fund, Elysium Venture Capital, and Link VC.
The investors above and others have participated in two venture rounds, and they are part of the top validators on the Fantom network.
It is always important to check the investors and individuals buying any cryptocurrency asset before you buy. The Fantom project has the backing of key investors and enthusiasts in the cryptocurrency space.
There is no clear roadmap on the Fantom website, but some key activities have shaped the Fantom network from 2018 to 2020. In June 2018, the Lachesis protocol was validated, and the Middleware Beta was launched.
An ERC-20 token was also generated for the Fantom network. In addition, there was a public API disclosure in the third quarter of 2018, and the Middleware Layer was announced.
In the first quarter of 2019 OPERA core layer was completed, the Ethereum Virtual machine and Functional Language were in the Beta phase. The Fantom Mainet OPERA was announced in the third quarter of 2019, and developers were offered incentives to build on the network. In the second quarter of 2020, the Fantom Council was established, and they started promoting the network globally. The System model was also expanded to a global audience in the first quarter of 2020.
So far, Fantom has accomplished most of its plans, and there are already many smart contracts and decentralized applications performing exceptionally well on the network.
The native token of the Fantom network is FTM, and it has a market capitalization of 3.6 billion dollars at the time of writing.
The total supply of FTM tokens is 3,175,000,000 with 2,545,006,273 in circulation. the token is used to deploy smart contracts on the Fantom network, and it is also used to secure the network through staking.
Users on the network also use FTM to participate in governance decisions on the network. The FTM token is also used as network fees on the Fantom ecosystem. FTM is the backbone of the entire Fantom ecosystem.
The Fantom token is an Inflationary token even though the Fantom Foundation claims to burn FTM tokens. The burn mechanism is slow, and they don’t burn as many tokens at a time. The only burn mechanisms right now are through voting and staking.
Each vote cost 1FTM, which is too small since we have billions of FTM tokens in circulation. The second way a burn occurs is when FTM is unstaked before time.
An inflationary model was adopted to expand the Fantom ecosystem, and they have a 5% annual inflation rate. As more people join the network, the inflation rate is reduced.
Where to Buy the Fantom FTM token
After reading this, you might be interested in buying FTM. The cryptocurrency is listed on many leading exchanges and comes in different trading pairs.
The crypto asset is listed on many centralized and decentralized exchanges and can be traded easily.
Rounding Up – What is Fantom?
Fantom is one of the Layer 1 ecosystems pushing to displace Ethereum. Ethereum. There are also a lot of questions over the long-term success of Fantom, especially after the announcement that Andre Cronje, a core member, and advice of the Fantom Foundation, announced his resignation from Fantom.
It saw the price of FTM plummet, but the team announced that activities would continue as usual. The only thing that might stop Fantom from growing is the competition from other smart contract blockchains.
Hopefully after reading you will understand what is fantom? please if you have any questions ask in the comment section below.