FANTOM
What Is Fantom (FTM)
How Does It Work? Tokenomics, Features
A Smart-Contract Blockchain based on a DAG
If you use the Ethereum protocol on a very busy day, the fees will almost certainly exceed the amount of the deal if you’re, say, transferring crypto valued less than the change in your pocket. Today’s presentation, Fantom, can help.
Introduction to Fantom
Fantom is a layer-1 solution that supports DeFi, DApps, and enterprise applications. It is very scalable and quick. Fantom’s native utility token, FTM, is in charge of the whole Fantom blockchain ecosystem. You can use your Fantom FTM to mint FUSD (a stable coin from fantom) and have access to the DeFi tools. You can trade synthetic assets with fUSD, or lend it to earn interest and borrow synthetic tokens. It is one of the several blockchain networks that have sought to provide an alternative to Ethereum. Fantom intends to provide more flexibility and decrease expenses.
Fantom’s setup is made possible by its Lachesis (Asynchronous Byzantine Fault Tolerant (aBFT) Proof-of-Stake (PoS) arrangement instrument), which keeps track of the complete organization’s functional capacity. The aBFT network layout should improve network security while also increasing performance.
How does Lachesis Consensus work in Fantom?
Fantom developed the Lachesis Consensus BFT (Asynchronous Byzantine Fault Tolerance) technique to overcome vulnerabilities in the Classical and Nakamoto consensus protocols.
In terms of its concept of aBFT, Lachesis is capable of processing transactions at a variable rate and tolerating up to one-third of faulty users that engage in Malicious Behavior while posing no threat to the network.
Unlike Proof-of-Work (PoW), which requires time-consuming verification, the aBFT technique tends to go beyond other BFTs consensus and is purposefully designed to reduce transaction time while maintaining scalability. As a result, the Lachesis Census was able to create a time-efficient finality transaction; each transaction can be correctly confirmed in less than one second.
The Directed Acyclic Graph (DAG) is used by each Lachesis node in Fantom to determine and confirm the order of Event Blocks in the system. The confirmed blocks will be aggregated as a final chain as part of Fantom’s foundation layer once the events have been concluded individually. The transaction is now completed and waiting for processing.
Unlike other types of consensus, which often send information between blocks, Lachesis consensus exclusively sends information between nodes. As a result, when it comes to transaction speed and security in under a second, this protocol is the clear winner.
As a result, the Lachesis Consensus Protocol mainly relies on Proof-of-Stake (PoS) to ensure that all validator nodes have equivalent influence over the network and can join or leave at any time.
Who Build Fantom?
Dr. Ahn Byung Ik, a South Korean computer scientist, founded the Fantom Foundation. Michael Kong is the platform’s current CEO.
The Fantom team has vast experience, especially in full-stack blockchain development, and set out to design a smart contract platform that prioritises scalability, decentralisation, and security.
Features Of Fantom Network
Safeguarding the Network
To defend its decentralised network and transactions, Fantom employs a Proof-of-Stake mechanism, with FTM serving as a staked coin. Over 500,000 FTM tokens are utilised to run validator nodes, which are in charge of locking tokens and verifying transactions. Staking FTM tokens, in fact, creates economic incentives for Fantom users to contribute to network security while also growing profits.
On-chain Governance
Fantom is a decentralised platform with no central authority that directs the network and offers its users complete rights throughout the ecosystem. As a result, another important benefit of the FTM token is the On-Chain Governance function, which allows holders to propose and vote on platform advancements.
What is Fantom Opera?
Opera provides a safe and fast environment for developing decentralised applications. It is completely permissive and open-source. It is ready for real-world applications with no dangers of congestion or long confirmation periods because it is powered by Fantom’s aBFT consensus algorithm, which leverages its speed and swift finality.
The Fantom Opera mainnet is Ethereum Virtual Machine (EVM) compliant and has complete smart contract functionality via Solidity.
Devs built Opera to overcome the restrictions of prior blockchain generations while maintaining interoperability with Ethereum for smooth dApp conversion.
Who is Renovating on Fantom?
Fantom Finance enables synthetic minting, liquid staking, decentralised lending, and trading.
SpookySwap is a decentralised market maker. Consider Uniswap on Fantom. Its token features the funny ticker “BOO.”
Multichain is a router protocol that operates over many chains.
Geist Finance is a lending protocol that is decentralised.
Devil Finance is a Decentralized Yield Optimizer tool that lets users earn compound interest on their cryptocurrency assets. Devil Finance has one of the most advanced market yield tactics and operations.
370 Million FTM incentive program
According to a press release, the programme came about after the Fantom Foundation noticed “a lot of fascinating things going on in terms of liquidity mining” during the last several months. Fantom mentioned that other foundations behind their individual chains had begun to reward users of protocols that deploy on top of their respective chains. Fantom intended to reward users as well, but in its own unique way. “The Fantom Foundation created the programme to “better align incentives between users, builders, and the network.” Following the launch of the 370 million FTM incentive scheme, the FTM token’s price has increased by more than 100 percent, and it now sits at $0.8463. Since July 20 2021, when the FTM token hit a low of $0.15, the price has skyrocketed and reached an all-time high of $0.9571, a gain of 500%.
Tokenomics
FTM is one of the Top 40 largest cryptocurrencies at the moment, Fantom (FTM) is now trading at $1.5 (166 INR), as of April 05 2022. and as market size of more than $3.9 Billion. There are presently 2.55 billion FTM tokens in circulation. The remaining FTM tokens will be used to provide staking incentives to FTM holders. The benefits are determined by governance decisions; nevertheless, as of now, the FTM token may take two years to attain full circulation and distribute all incentives to staked FTM holders.
FTM tokens are available for purchase on all major exchanges. The inventors of FTM, however, discourage this activity because to custodial concerns and the lack of staking rewards for FTM holders who obtain FTM from sources other than the official FTM network.
Putting All Together
Fantom has many advantages over other popular platforms like Ethereum and the Binance Smart Chain. Fantom ensures tremendous scalability without compromising its decentralised character or security because to its DAG-based Lachemis aBFT consensus mechanism. If Fantom continues on its current path, it has the potential to become a big player in the DeFi industry.
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