What Is Fantom (FTM)?

Fantom is not a blockchain but rather a network of blockchains that enables users to develop their blockchains in a scalable, fast, and efficient manner.

In its most basic form, Fantom is the first DAG-based Layer-1 blockchain and smart contract platform. It provides several valuable features for users of the DeFi protocol. These activities include trading, lending, borrowing digital assets, staking, and much more. Scalability and confirmation times are two problems that frequently arise with blockchain technology; this platform provides solutions for both of these problems.

Let's learn more about Fantom.

What Is Fantom Ecosystem?

Fantom is a layer 1 distributed ledger that enables the deployment of smart contracts on its network. The platform uses an enhanced DAG, also known as a Directed Acyclic Graph, which involves the interaction of computer nodes in a network in a smooth manner to guarantee both the speed and safety of financial transactions. The Distributed Autonomous Group (DAG) smart contract platform was developed to solve the issues that plagued the first wave of blockchain platforms.

To reach a consensus, Fantom implements its unique Proof-of-Stake (PoS) model, consisting of an independent layer called the "Lachesis Protocol." This project aims to integrate this protocol into the EVM-compatible smart contract chain known as the Fantom Opera chain. In essence, it makes it possible for several projects to be constructed on the Fantom Opera chain so that they take advantage of the fundamental capabilities offered by Fantom. This involves completing transactions promptly with minimal effort while maintaining all users' confidentiality. 

What Is a FTM Token?

FTM tokens are the primary utility token of the Fantom ecosystem. This token can be used to pay for transaction costs, stake, and obtain voting rights. There is an ERC-20 version of FTM and a BEP-2 version, but neither can be used on the Opera Chain.

Current trading price: $0.3293

Market cap: 1.04 billion

Total supply: 3.17 billion

History of Fantom 

Ahn Byung Ik, a South Korean computer scientist, is the man behind the creation of Fantom. The team consists of engineers and scientists from around the world working to provide its consumers with scalability, security, and decentralization. 

FTM was first introduced at the end of 2018 and started trading at around $0.02. The launch was through an initial coin offering (ICO), which aimed to raise project funds. The token's value increased substantially, eventually reaching about $3.50 by the end of 2021. 

Features of Fantom

Adaptable

Ethereum can be used with Fantom without any problems. Because of its adaptability, developers can use the Fantom architecture to update already-existing Ethereum dApps, which results in lower costs and improved performance. Because all decentralized applications use the same infrastructure, bottlenecks frequently cause processing to be slowed down. However, Fantom is immune to congestion because each application has its blockchain, so this issue does not impact it. Although they operate independently, blockchains can communicate with one another to create what is known as a "network of networks."

The Fantom Foundation asserts that because FTM crypto is highly scalable, it possesses the potential to become "the IoT infrastructure backbone" for smart cities and the public utilities that serve them. But Fantom has shifted its focus from the IoT to concentrate more on its products and services in the DeFi space.

Staking

With staking, your initial investment can earn you an annual percentage yield (APY) of approximately 1.8%and this can increase to 6% if you stake for an entire year. You can decide how long your delegation will be locked for, ranging from no lock to a lock of up to a year, in exchange for enhanced staking rewards. You are free to collect your incentives whenever convenient, and you can combine them to earn even more money from your delegation.

Lachesis

Lachesis operates in the same manner as a standard PoS platform, but this technology is considerably quicker and more efficient. It mixes events from many periods and casts their votes as a single unit. This approach makes processing a massive volume of transactions easier by handling 4500 transactions per second. These transactions include both standard transactions and smart contracts. 

What Makes Fantom (FTM) Unique?

Fantom is unique because of its use cases. The project allows anyone to safely and securely put intelligent contracts onto blockchains. 

This powerful platform can allow developers to design new projects that require high throughput and low transaction costs, which are impossible to achieve on Ethereum. Gaming on the blockchain, music streaming, and using smart contracts to make micropayments are possible applications for Fantom.

To launch new projects, developers must first code and release their concepts on a new layer 2 blockchain. These projects are compatible with the Ethereum virtual machine (EVM), which means that users can simply use apps created on Ethereum with Fantom so long as the application supports the Fantom toolkit. This is a crucial feature since it allows developers to migrate their projects to Fantom, which makes those developers' projects more cost-effective to use.