What Problem Does the Fantom Network Solve?
The Fantom crypto project seeks to address the notorious blockchain trilemma. The trilemma states that achieving scalability, security, and decentralization simultaneously is incredibly difficult for blockchain networks. Most previous generation blockchains like Ethereum and Bitcoin have sacrificed scalability for security and decentralization.
However, Fantom (FTM) has hammered out a method of resolving this issue through an asynchronous Byzantine Fault Tolerance ("aBFT") mechanism that privileges scalability, decentralization, and security. This aBFT consensus system enables the processing of transactions to occur asynchronously, resulting in more efficient transaction processing and higher throughput compared to synchronous BFT platforms like Ethereum and Bitcoin.
The utmost mission of the Fantom blockchain is to “grant compatibility between all transaction bodies around the world.”
To ensure decentralization and security, Fantom utilizes a permissionless and leaderless consensus protocol. This protocol allows anyone to join or leave the network at any given time, ensuring equal participation of all nodes and enhancing the network's overall security.
One notable feature of Fantom is its support of DeFi (Decentralized Finance) applications. The platform offers various DeFi protocols, including a decentralized exchange (DEX), lending and borrowing services, and yield farming opportunities. The most famous DeFi solution powered by Fantom is Yearn Finance, a special protocol that allows everyone to earn yields on their digital assets.
How Does Fantom Work?
Consensus algorithms are at the heart of distributed ledgers. It enables nodes in distributed networks to agree on data and event order without relying on a central authority. The consensus eliminates the need for a central authority and ensures that all nodes in the network have an identical ledger, enabling the correct functionality of applications built on the consensus protocol.
Fantom operates on the aBFT consensus mechanism, which stands for "asynchronous Byzantine Fault Tolerant" consensus. This means that even if parts of the network act maliciously, the nodes can still reach an agreement on the order of events.
The asynchronous aspect of aBFT allows the network nodes to confirm event blocks containing transactions without relying on timing assumptions. This ensures faster transaction confirmations without compromising security or decentralization.
When a transaction is confirmed by the network, it achieves complete finality and cannot be changed or reverted. The aBFT consensus can reach agreement on transactions even if some messages between nodes are lost, making the network more resilient.
Compared to synchronous blockchains like Ethereum and Bitcoin, which follow the longest-chain rule and require multiple confirmations, Fantom's Lachesis aBFT consensus algorithm offers faster transaction confirmations.
Lachesis is Fantom's aBFT consensus algorithm, which is asynchronous, leaderless, Byzantine Fault Tolerant, and final. Fantom's distributed ledger built on the Lachesis Protocol is highly decentralized, secure, and offers high-throughput and low finality.
Finality refers to the state where a transaction cannot be changed or reversed by any party. Fantom achieves a low time to finality, with Opera Chain accomplishing finality in 1 to 2 seconds and TxFlow achieving finality in less than a second.
In contrast, Nakamoto consensus protocols rely on probabilistic finality, where the probability of a transaction being reverted decreases over time. Bitcoin has a finality of 30 to 60 minutes, while Ethereum has a finality of a few minutes.
What is The FTM Token?
FTM is the primary token of the entire network of Fantom.
Securing the network is one of the major roles of the FTM coin. Using a Proof-of-Stake (PoS) model, validator nodes and stakers can earn rewards by holding and locking up their FTM. This incentivizes decentralization and contributes to the network's security, all while being environmentally friendly.
Beyond network security, FTM is also designed for seamless payments. Thanks to the Fantom network's high-throughput, fast finality, and low fees, FTM is an ideal token for sending and receiving payments. Whether it's individuals or businesses, the efficiency and affordability of FTM make it a practical choice.
The FTM crypto also features on-chain governance, where users vote with their FTM tokens. Fantom's entirely permissionless and leaderless decentralized ecosystem relies on the on-chain governance for decision-making. Stakers, holding FTM coins, can propose and vote on network changes and improvements, ensuring the community has a say in the network's evolution.
FTM also plays a vital role in covering network fees. These fees include transaction fees, smart contract deployment fees, and fees for creating new networks. While Fantom keeps fees affordable, they create a necessary barrier to prevent spam and malicious activities, maintaining a high level of network performance.
Considering the total supply, FTM has a total cap of 3.175 billion tokens. The current circulating supply is 2.1 billion FTM coins, while the remaining coins are reserved for staking rewards. These rewards will be gradually distributed over time, ensuring a controlled circulation and maintaining the integrity of the network.
The live price of the FTM crypto is available on the chart above.
What is Fantom Staking?
Fantom has a detailed staking reward system that allows users to earn crypto rewards by staking their FTM tokens. You can access the wallet from your computer or mobile device, deposit your FTM, and choose a validator to earn rewards. Staking on Fantom is flexible and inclusive, with no minimum requirement to stake.
You can stake-as-you-go or lock up your FTM for higher rewards. By staking, you contribute to network security and earn passive income in the form of the FTM digital asset. Your staked tokens remain in your wallet and are safe. Unstaking takes 7 days, during which rewards are not received. Join Fantom's staking program and start earning crypto rewards today!
How to Store and Use FTM Tokens?
Users can store their FTM tokens in Fantom's official PWA wallet, available for both mobile and desktop. It is essential to note that the PWA wallet only supports Opera Network FTM and not the ERC20 tokens such as those on Ethereum.
Although Fantom has an ERC20 token, it cannot be used directly on the Opera mainnet. To send ERC20 tokens to a Fantom Wallet, they must first be swapped to mainnet FTM. This ensures compatibility and seamless utilization within the Fantom ecosystem.
What is Opera?
Opera is the backbone of the Fantom ecosystem. It is an application development layer of Fantom's mainnet deployment platform, hosting Dapps (decentralized applications) that are compatible with the Ethereum Virtual Machine (EVM). This compatibility enables developers to leverage existing Ethereum infrastructure while benefiting from Fantom's scalability and security.
Developers can code in popular programming languages, such as Solidity and Vyper, and their applications and smart contracts will run seamlessly on the Fantom Opera mainnet. Fantom is also developing the Fantom Virtual Machine (FVM), a new virtual machine that promises improved performance and security compared to the EVM.
How is Fantom Governed?
The governance of the Fantom network is an essential aspect of its operation. Currently, the Fantom Foundation governs the network with advice from the community and validator nodes. However, Fantom has plans to launch a governance smart contract that will allow validators and token holders to actively participate in the decision-making process.
Using the FTM token as a governance token, users will have voting power proportional to the amount of FTM they hold. This on-chain governance model ensures transparency and decentralization, aligning with the true spirit of blockchain technology.
How Did Fantom (FTM) Start?
The Fantom Foundation, which oversees the Fantom product offering, was originally created in 2018 by Dr. Ahn. Dr. Ahn is an esteemed South Korean computer scientist and entrepreneur. He obtained his Ph.D. in Computer Science from the Korea Advanced Institute of Science and Technology (KAIST) and has been actively involved in the blockchain space for several years. He also served as a Chief Technology Officer (CTO) at a major tech company in South Korea.
It was during this time that Dr. Ahn recognized the limitations of existing blockchain platforms and envisioned a more scalable and efficient solution. He assembled a team of experienced developers, cryptographers, and economists, and together they launched the Fantom platform in February 2018.
Since then, Fantom has gained significant recognition and has garnered support from various institutions and investors in the cryptocurrency industry. Currently, it is the world's third-largest blockchain system after Bitcoin and Ethereum.
What is the Current Price of Fantom Today?
Changelly offers an interactive FTM price chart where you can track the real-time price of FTM, analyze its historical trends, and make informed decisions about buying or selling the Fantom cryptocurrency. Our FTM-USD price updates in a real-time fashion, ensuring that you have the most accurate and up-to-date information on the exchange rate between FTM (Fantom) and USD (United States Dollar).
Along with the live Fantom price, our chart allows you to view other important data regarding the asset’s performance on the crypto market. In particular, you can learn about the lowest and highest price paid for Fantom (FTM), as well as the trading volume and market capitalization.
This information provides valuable insights into the coin price trends and overall market sentiment surrounding the Fantom cryptocurrency. These facts can be used for your technical analysis if you are elaborating on the Fantom FTM price prediction.
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