Fantom Blockchain Overview
Overview:
Fantom is a decentralized, permissionless, open-source smart contract platform for decentralized applications (dApps) and digital assets
The CMP of FTM on 14th January is $2.89
What is DApps?
Decentralized applications, commonly referred to as “dApps” or “dapps,” are computer programs that operate on a blockchain network of computers rather than on a single computer. The protection of user privacy, the lack of censorship, and the development freedom are all advantages of dApps. Prime examples of DApps would be Decentraland, Uniswap, OriginTrail, and IDEX.
What is Fantom?
Fantom is a decentralized finance (DeFi) smart contract platform that uses its proprietary consensus algorithm to provide decentralized finance (DeFi) services to developers. Fantom attempts to overcome challenges connected with smart-contract platforms, notably transaction speed, which developers claim to have lowered to under two seconds.
What is DeFi?
Decentralized finance, or DeFi, is a mechanism for making financial goods available on a decentralized blockchain network that is open to the public. As a result, instead of going via intermediaries like banks or brokerages, anybody may utilize them. Unlike a bank or brokerage account, DeFi does not require a government-issued ID, Social Security number, or proof of address.
Why Fantom matters and its problem-solving capabilities
Fantom targets what most blockchains lack in them which is speed, security, and scalability. Fantom’s aBFT consensus algorithm is called Lachesis. Simply explained, the blockchain is propelled by a consensus process. Lachesis is speedier, more scalable, and secure. Lachesis allows developers to construct peer-to-peer apps without having to design their networking layer.
- Speed and cost:- According to Fantom’s website, the network can execute thousands of transactions every second for a fraction of a cent. This is quick, but not quite as quick as Solana, which can handle over 50,000 transactions per second.
- Technology:- Fantom claims to have addressed Ethereum’s scalability issue by providing each application its blockchain, thereby turning it into a network of networks. Its directed acyclic graph (DAG) distinguishes it from other blockchains in that transactions may be handled in parallel rather than using a single processor as in more typical cryptos.
What is Directed Acyclic Graph(DAG)?
Vertices and edges make up directed acyclic graphs. Unlike a blockchain, there are no blocks. Transactions are instead stored as vertices, which are stacked on top of one another. Nodes, like nodes on a blockchain, submit transactions to the DAG.
- Security:- Fantom also provides superior security by securing the network with a leaderless Proof-of-Stake protocol. Unlike many other current projects, Fantom does not prioritize scale above security and decentralization.
What is Proof of Stake(PoS)?
Proof-of-stake is a cryptocurrency consensus mechanism for processing transactions and creating new blocks in a blockchain. A consensus mechanism is a method for validating entries into a distributed database and keeping the database secure. In the case of cryptocurrency, the database is called a blockchain—so the consensus mechanism secures the blockchain.
- Scalability:- Fantome guarantees that each of the blockchain-powered networks operates independently of the others, allowing these networks to grow for performance without having to worry about congestion.
Use cases:-
Staking:- Fantom uses a proof-of-stake model. Transactions are verified by nodes made up of people’s Fantom tokens. By staking crypto this way, you help secure the network and earn rewards.
Governance:- Since Fantom is decentralized, token holders make decisions regarding its future. By holding and staking Fantom, you can propose and vote on changes.
Network Fees:- The Fantom network charges fees in the form of its coin. These costs apply to transactions, smart contract deployment, and the creation of new networks.
Payments:- Fantom is a handy way to transfer payments to others because of its rapid transaction rates and inexpensive costs.
Compensating Validators:- Validators are compensated in FTM tokens for participating in different FTM activities like preventing transaction spam, validating transactions, and so on.
Providing network security:- FTM already employs the Proof-of-Stake (PoS) mechanism, which necessitates the possession of FTM tokens by validators. Through their validator node, any validator with at least 1,000,000 FTM tokens can receive incentives. Staking benefits are available to FTM holders who delegate their tokens to other validators.
Tokenomics
There are 3.175 billion FTM available in total. There are presently 2.5 billion in circulation which is 80% of the total supply, with the remaining set aside for staking rewards. If the incentives remain unchanged (depending on governance actions), it will take more than two years to distribute all of the awards and circulate the whole supply. To facilitate trade, the total quantity is spread over many token standards. FTM is now accessible in three forms: native mainnet token, ERC-20 token, and BEP-2 token.
Competition Analysis
Fantom vs Solana
When compared to FTM coins, SOL coins are around eight times cheaper to transmit. It also confirms transactions around 10 times faster (reach a high level of certainty a transaction is complete). Solana is around 20 times more decentralized, making it more trustworthy and potentially secure. Decentralized contracts may be connected to Solana and Fantom’s blockchains, allowing developers to construct decentralized apps on top of their protocols, such as DeFi (decentralized finance). Both Solana and Fantom are fully deployed, meaning they are completely functioning in terms of their particular capabilities.
Fantom vs Ethereum
Fantom has a speed of up to 20,000 transactions per second(tps) whereas Ethereum has a speed of around 30 transactions per second. Fantom has a very low gas fee compared to Ethereum which makes it a strong competition to one of the big projects.
Team, Media & Community strength
Dr. Ahn Byung Ik, a South Korean computer scientist, created the Fantom Foundation. Michael Kong is the platform’s current CEO. Fantom was created by a team with vast expertise in full-stack blockchain development, with the goal of creating a smart contract platform that prioritizes scalability, decentralization, and security. Specialist engineers, scientists, researchers, designers, and entrepreneurs make up Fantom’s team. Employees are spread around the globe, in keeping with the dispersed platform’s concept.
Andre Cronje is a prolific developer best known for his contributions to high-profile DeFi projects such as Hegic, Pickle, Cover, PowerPool, Cream V2, Akropolish, Sushiswap, and others. Cronje has 20 years of development expertise as a software architect. He was requested to remain as a lecturer after finishing his three-year computer science study in just five months. Before moving into mobile security and cryptography, he worked in telecommunications, designing large data and high transactional infrastructure.
Fantom’s social media family is growing rapidly on Twitter and discord. They have over 313.6K followers on Twitter and 40k members in discord in just over 4 years. They even have a YouTube page with 22K subscribers just to keep the users updated with what is going on in the network and which also provides assistance if needed it is called Fantom Alerts. They were frequently featured in news articles on coindesk on Jan 8, 2022, which highlighted how well fantom was doing compared to Avalanche as fantom processed over 1 million transactions while avalanche processed just 780k transactions. It has a lot of media presence which means that it’s been on the radar for its potential.
Conclusion
The FTM blockchain trilemma refers to the balance of speed, security, and decentralization – something that most blockchains (even big ones like Bitcoin) do not supply to their users. Fantom addresses this void, and this is the key to attracting crypto users to migrate from other blockchains to the FTM network, thus driving up the price of the FTM token.
Having someone like Andre Cronje in the team, the creator of DeFi it is safe to say that Fantom is in very good and potential hands. As Fantom pays the developers to invent applications and keep the users engaged, there is going to be a lot of growth in this project as the developers would keep attracting the users.
Compared to Ethereum, one of the very strong projects fantom is a few steps ahead of it compared to its transaction speed and cost of transaction which is to say for itself that it has a lot of potentials.
The mania for smart contracts and Defi is spawning lots of new so-called “Ethereum killers,” making this a very competitive industry. It’s difficult to predict which initiatives will thrive and which will fail, but Fantom checks a lot of the boxes that a network with such lofty goals should.
Fantom is pivoted to establish its place in the wider crypto and blockchain ecosystem and provide head-to-head competition to other similar alternatives with its speed and interoperability benefits.
MintingM rating for Fantom: 4.11/5
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