Imagine a blockchain platform with unmatched speed, security and decentralization – one that could revolutionize the way we think about decentralized finance and smart contract applications. Meet Fantom, a next-generation blockchain platform that solves the blockchain pain point through its unique technical framework.
What is Fantom (FTM)?
Fantom is a DAG (Directed Acyclic Graph) based smart contract platform for decentralized applications (DApps). So, is Fantom centralized or decentralized?
Fantom is an open, permissionless, decentralized, and highly scalable platform used to build decentralized cryptocurrency applications. DAG is a data modeling and structuring technology where the network consists of vertices and edges, unlike blockchain, which is made up of blocks. As a result, cryptocurrency transactions are represented by vertices and stacked on top of each other.
Simply put, a blockchain system is like a chain, while the design of a DAG is like a graph. Dr. Ahn Byung Ik from Korea founded Fantom Foundation in 2018, and this smart contract project has become one of the most popular blockchains for DeFi transactions.
It was created to address shortcomings, including long transaction times, of previous blockchain platforms such as Bitcoin and Ethereum. FTM is the native coin of the Fantom network, which can be used for governance activities, validator compensation, and providing security to the network.
This beginner’s guide to the Fantom blockchain protocol aims to educate the community about the Fantom ecosystem by explaining how the Fantom network works, how to buy Fantom (FTM), and the difference between FTM and Polygon MATIC.
What makes Fantom special?
Traditional blockchain systems, such as the Bitcoin blockchain, are not designed to scale; instead, they prioritize security and decentralization. For example, a transaction on the Bitcoin network can take 10 to 15 minutes. This makes it difficult to scale the network in terms of the number of transactions.
The Fantom team aims to fill this gap by using a leaderless proof-of-stake (PoS) protocol to secure the network (i.e. the blockchain does not compromise on security or decentralization). Furthermore, a transaction on the FTM network only takes 1-2 seconds to complete. Additionally, transaction fees are much lower than Bitcoin.
The Fantom Opera mainnet is compatible with the Ethereum Virtual Machine (EVM) and supports full smart contract functionality via Solidity. Fantom’s network is unique in that it is self-contained, meaning the performance of one congested area does not affect other areas of the network. So, is Fantom its own blockchain?
Each application has its own customized (independent) blockchain with specific tokens, governance rules and tokenomics, thanks to Fantom’s high scalability. The infinite number of decentralized systems that make up Fantom interact with each other while operating independently in their own zones.
How does Fantom solve the blockchain dilemma?
The “Blockchain Dilemma” that Fantom solves is a major problem. The blockchain dilemma refers to the impossibility of balancing speed, security, and decentralization at the same time. Fantom uses permissionless protocol and aBFT to process asynchronous transactions to achieve decentralization and security, which speeds up the process.
Fantom’s aBFT (asynchronous Byzantine fault tolerance) DAG-based Lachesis algorithm outperforms both the Classical and Nakamoto models. Lachesis is a more efficient, scalable, and secure alternative that allows developers to create peer-to-peer applications without building their own network layer.
Lachesis is asynchronous, meaning participants can process commands at their own pace. Furthermore, there is no leader and no one plays a “special” role. Additionally, Lachesis is Byzantine fault-tolerant (BFT), meaning it can achieve consensus even when nodes experience problems, including malicious activity. Finally, the output of Lachesis is immediately usable. Transactions are confirmed in 1-2 seconds; therefore, there is no need to wait for block confirmation.
Peer-to-peer network and DAG consensus algorithm aBFT is used to connect Lachesis with other Lachesis nodes to ensure that identical orders are processed in the correct order. The same event is repeated in different elections, resulting in fewer consensus messages being generated. As a result, compared to synchronous BFT, Lachesis achieves faster completion times and lower communication costs.
What is FTM used for?
The main token of the Fantom network is FTM, which is used for payments, governance, staking and fees, and securing the network.
Pay
The Fantom network’s fast confirmation speed makes payments faster (taking about one second). Furthermore, the high throughput and low fees (around $0.0000001) make the FTM token ideal for currency exchanges.
Administration
FTM is needed for on-chain governance, where stakers can propose and vote on modifications and improvements through governance. Since Fantom is a completely permissionless and leaderless decentralized ecosystem, on-chain governance is responsible for all network decisions. Therefore, the governance token, FTM, must participate in the voting process.
Staking
FTM can be used for staking to secure the Fantom network and receive rewards in FTM tokens without the need for special hardware or software. You can do this from your phone or computer — it’s that simple!
Network fee
FTM is used to pay network fees such as Fantom smart contract deployment fees, new network creation, or even transaction fees.
This fee ensures that the network does not become an easy target for spam, and that malicious users cannot cause speed problems or clog the ledger with meaningless data.
While fees on Fantom are quite low, they are enough to keep attackers away by making it extremely expensive for a malicious actor to break into the system.
Network Security
With a proof-of-stake system, the FTM token aims to secure the network, where stakers need to lock up their tokens, and validators need to hold at least 3,175,000 FTM to participate. Epoch fees and rewards are given to stakers and validators for their services.
Conclude
Fantom is a carefully designed platform for developing and deploying dApps based on digital assets and smart contracts. Tools and components that accelerate and simplify the creation of dApps that work securely, quickly, and at low cost.
FTM is attractive primarily for its role in the Fantom ecosystem, but it can also be traded and used to generate passive income while staking in Fantom’s PoS network.
You can see FTM prices here.
Mr. Giao
According to Cointelegraph
