What is Fantom FTM? A blockchain is a list of records that are connected and secured with cryptography. The most common type of blockchain is the public ledger that anyone can access.
Fantom is a blockchain platform that provides what many are calling the “next-generation” of dApps. What makes Fantom different from other platforms? What does it offer, and how can you use it to your advantage? Let’s find out!
Investing In Fantom (FTM) – Everything You Need to Know
What is Fantom?
Fantom is a smart contract platform that offers decentralized finance (DeFi) services, such as loans and insurance, using its bespoke consensus algorithm.
Fantom’s primary aim is to provide a service that allows users to execute smart contracts. Along with its in-house token FTM, the project aims to address issues associated with smart-contract platforms, notably transaction speed, which developers claim they’ve reduced to around two seconds.
The Fantom Foundation, which manages the Fantom product line, was formed in 2018, and OPERA, Fantom’s mainnet, debuted in December 2019.
The Fantom Foundation was founded by Dr. Ahn Byung Ik, a computer scientist from South Korea. Currently, the CEO is Michael Kong of the platform.
Fantom was designed to be a smart contract platform with scalability, decentralization, and security as the top priorities. The development team is made up of blockchain experts who specialize in full-stack blockchain creation.
According to its website, Fantom is made up of a team of engineers, scientists, academics, designers, and entrepreneurs. Employees are scattered throughout the world in keeping with the decentralized platform’s values.
Fantom aims to utilize a new scratch-built consensus mechanism to support DeFi and associated services using smart contracts.
With the Lachesis algorithm, the network will have a capacity of up to 1 million transactions per second and a two-second transaction finish time. It will also feature enhanced security over PoS algorithm-based platforms, thanks to improvements in proof-of-stake (PoS) technology.
What is Fantom (FTM) Token?
The Fantom (FTM) token is the native asset of Fantom. There are three kinds of FTM tokens in circulation right now:
- Opera FTM – the token used on Fantom’s mainnet Opera Chain;
- BEP-2 – the token well suited with Binance Chain.
- ERC-20 – the token compatible with Ethereum (ETH);
The ERC-20 token, on the other hand, is compatible with Ethereum and can not be used on the Opera Mainnet. The Fantom Wallet converts an ERC-20 FTM sent by a user to Opera FTM as soon as it arrives.
The Fantom token is the network’s backbone, bringing life to the whole ecosystem. It serves as the network’s governance token and may be utilized in a variety of ways that contribute to the network’s expansion while also rewarding users.
FTM is more than just the governance token for an outstanding blockchain: it’s also used for transaction charges and making payments. Of course, it’s the investment vehicle people buy and sell in order to make money. FTM is also utilized for staking, which means it may provide passive income to owners without them even having to sell.
Another thing to be aware of regarding Fantom FTM is the fact that it exists in various forms. A multicolored, 24-hour dial with a minimalist design is available. A native FTM, an ERC-20 FTM (Ethereum compliant), and a BEP2 FTM (Binance Chain compatible) are accessible. The three coins all have the same value and are meant for various platforms, yet they each have their own set of rules. The native FTM, on the other hand, is only compatible with the Fantom mainnet. After being received into FTM wallets, the other versions are immediately converted to the native version.
How Does Fantom (FTM) Work?
Fantom (FTM) sees the problems with existing blockchains in the crypto industry and is striving to overcome them. The FTM platform is decentralized, scalable, permissionless, and open-source, providing it an edge over major blockchains.
Lachesis is a DAG-based asynchronous non-deterministic algorithm that runs on the Opera mainnet of Fantom and lowers the development and performance costs of decentralized apps (DApps). Opera’s mainnet is designed to let users use smart contracts via the Ethereum EVM (Ethereum Virtual Machine).
The fact that Fantom’s network is completely autonomous makes it unique, as it means that the performance of one location’s traffic congestion has no influence on other parts of the network. Every application has its own (independent) blockchain with customized governance rules, tokens, and tokenomics thanks to Fantom’s (FTM) high level of scalability.
Fantom, like Ethereum, is a single decentralized machine made up of many decentralized systems that communicate with one another despite operating independently in their own zones.
Fantom solves the ‘Blockchain Trilemma,’ which is a serious problem known as the ‘Blockchain Trilemma.’ The term “blockchain trilemma” refers to the balance between speed, security, and decentralization that can’t all be obtained at once. They all use permissionless architecture to achieve decentralization and security. But Fantom employs an asynchronous Byzantine Fault Tolerance (aBFT) technique to process transactions asynchronously, speeding up the overall procedure.
Unique Features Of Fantom (FTM)
Fast, Secure, and Cheap Payment Platform
Payments on the Fantom network take around 1 second and cost $0.0000001, with transactions on the FTM platform also being extremely safe due to the Proof-of-Stake approach.
Staking Rewards For Fantom Holders
Users who stake their FTM tokens on the platform receive an APR of at least 3.79 percent, with a maximum of 11.59%. The APR is determined by two factors:
- The amount of FTM tokens that have been staked
- The total amount of time the tokens are staked
If a person stakes 10 FTM for a period of 2,121 days, they will receive 1 FTM token with an APR of 8.39 percent.
Because FTM tokens are non-transferable, they can’t be traded, bought, or sold. To trade them, you must first unstake them; this takes around seven days. If FTM token holders unstake their tokens before the lockup period is over, all of their FTM tokens will be destroyed!
The FTM Network is entirely decentralized and permissionless, allowing any action to be taken only by holders of FTM tokens who have put them in the network. Stakers may propose new changes, vote on major issues, upgrades, and set the roadmap for the FTM network.
Pros and Cons of Fantom
- Scalability and Speed when using the aBFT consensus algorithm.
- On-chain voting will be available to the community.
- Smart contracts and ERC-20 tokens are supported.
- With TxFlow, a network is protected against attacks utilizing an aBFT middleware protocol that aims to improve performance and overall efficiency while not sacrificing speed.
- It’s not compatible with other wallets, but it does have its own. While it can be used on phones and desks, you can only save your FTM using the official Fantom wallet – PWA Wallet. Other ERC-20 tokens are compatible with the wallet, although they are swapped for Opera FTM automatically.
- You won’t be able to stake FTM on other platforms such as Binance. You can only stake FTM on the platform.
5 Things to Know Before Investing in Fantom (FTM)
It’s a blockchain platform with smart contract abilities
It’s critical to understand what Fantom is all about. Fantom is a blockchain platform that supports smart contracts. These programs allow blockchains to do more sophisticated transactions than simply moving money from one person to another.
Smart contracts are currently being used in a variety of ways, including:
- They’re important in decentralized finance (DeFi), which are financial services that don’t need a central authority. Developers may use smart contracts to develop DeFi platforms by creating decentralized apps (dApps).
- They’re used to figure out who owns non-fungible tokens (NFTs). These are digital collectibles that may be traded, purchased, and sold.
Ethereum was the first crypto to provide smart contracts, and it’s where most dApps are created. However, it has been having problems with congestion, resulting in outages and costly transaction charges. Due to this, various solutions have emerged, providing more rapid transaction processing at a lower cost.
It’s available on several large cryptocurrency exchanges
Many different cryptocurrencies, especially those with smaller market caps, are difficult to buy. Fortunately, Fantom is an exception to this rule. It’s available on several of the most well-known cryptocurrency platforms, including:
Fantom is also tradable on a variety of decentralized cryptocurrency exchanges. This kind of exchange allows users to trade directly with one other without the need for a middleman to facilitate transactions. Fantom is available on Uniswap and Sushiswap, among other decentralized exchanges.
Transactions on Fantom are cheap and nearly instant
One of the major advantages of Fantom is its rapid transaction processing. Thousands of transactions are processed per second, with settlements occurring in one to two seconds. Transaction fees are generally a few cents. It was claimed in May that Fantom had processed over 3 million transactions and was the quickest blockchain platform.
There are also a number of other cryptocurrencies that provide comparable speeds, and it may no longer be the fastest blockchain platform. Solana (SOL) could handle at least 50,000 transactions per second and offered a fraction of a penny in fees, according to reports. Even so, Fantom’s performance is remarkable.
Uses for the Fantom token cover staking, governance, network fees, and payments
The platform’s native cryptocurrency is the Fantom token. Here’s what it’s for:
- Staking: Fantom’s proof-of-stake system is used. Nodes made up of people’s Fantom tokens verify transactions. You earn rewards by staking crypto in this manner.
- Governance: Token holders have power in Fantom’s decentralized structure. By holding and staking FANTOM, you may propose and vote on changes.
- Network fees: Costs on the Fantom network are paid in its own cryptocurrency. Transaction, smart contract, and network creation fees are all incurred.
- Payments: Fantom is a simple way to send money to other people, with its quick transaction speeds and minimal costs.
It has strong competition in Ethereum and other cryptocurrencies
The most significant obstacle facing Fantom in the future is stiff competition. There are numerous options to Ethereum. This year, Cardano (ADA) has grown considerably and has become the biggest platform. Lightning-fast transactions may be obtained via another developing platform, Solana.
There’s also Ethereum, which is currently in the midst of a series of upgrades to Ethereum 2.0. It will move to a proof-of-stake system like Fantom does during these adjustments. Transaction speeds and costs should improve as a result of these modifications.
Fantom may be a good cryptocurrency investment due to its high transaction speeds and the sophisticated smart contracts platform it provides. Since then, the price has dropped, and it still has a much smaller market capitalization than many of its main competitors. There could still be more room for it to develop.
However, it’s difficult to determine which, if any, of these platforms will have a long-term impact. Before making a decision about where to invest your money, be sure to examine Fantom and the alternatives thoroughly.
Where to Buy Fantom (FTM)
Fantom token (FTM) is accessible on all the major cryptocurrency exchanges.
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Solana is an open-source platform that is built on blockchain technology’s free availability to provide decentralized finance (DeFi) services. Solana was formed in March 2020 by the Solana Foundation, which has offices in Geneva, Switzerland, and is led by a group of key individuals from both Microsoft and Ethereum. The project began in 2017 but received significant attention following its official debut at the end of March 2020.
The Solana protocol was created to make it easier for developers to construct decentralized apps (DApps). It attempts to increase scalability by combining the proof-of-history (PoH) consensus with the blockchain’s underlying proof-of-stake (PoS) consensus.
Solana has drawn interest from both small-time and big-time traders, thanks to its unique hybrid consensus system. The Solana Foundation is dedicated to making decentralized finance more available on a wider scale.
Anatoly Yakovenko, a Solana developer, developed the proof-of-history (PoH) consensus. This idea enables better protocol scalability, which improves functionality.
Ethereum is a decentralized open-source blockchain with its own currency, Ether. ETH acts as a platform for various other cryptocurrencies and the implementation of decentralized autonomous contracts.
Ethereum is the first blockchain smart contract platform, having invented the concept. Smart contracts are computer programs that execute automatically to fulfill a deal between many parties on the internet. They were created to reduce the need for intermediaries between contractors, lowering transaction costs while also improving transaction dependability.
Ethereum’s main contribution was to build a platform that allowed it to execute smart contracts using the blockchain, which enhances the advantages of smart contract technology even further. According to Ethereum’s co-founder Gavin Wood, the blockchain was intended to be a “one computer for the whole planet,” theoretically allowing any program to be more secure, resistant to censorship, and fraud-proof by running it on a global network of public nodes.
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Hedera is the most popular, long-lasting, and enterprise-grade public network for decentralized businesses that allows customers and companies to create strong decentralized applications (DApps).
It is intended to be a more equitable, efficient system that overcomes some of the shortcomings faced by previous blockchain-based platforms, such as sluggish performance and instability.
Hedera Hashgraph, unlike most other cryptocurrency platforms, isn’t based on a conventional blockchain. Instead, it utilizes a new type of distributed ledger technology called a Hashgraph.
This solution surpasses numerous blockchain-based options in a number of important categories, such as cost, speed, and scalability. Hedera transactions have an average fee of $0.0001 USD and typically finish in under five seconds. Overall, it claims to be able to handle more than 10,000 transactions per second (TPS) — significantly higher than the 5-20 for most popular proof-of-work (PoW)-based blockchains.
It is no surprise that Fantom coin has seen a boost in price. Many people are investing in it with enthusiasm, and prices have increased dramatically. Before investing in any coin, it’s vital to get expert advice. You must consider the dangers and potential rewards of your investment decisions when attempting to succeed in online investing.
One of the greatest ways to reduce your risk of making mistakes when investing in cryptocurrencies is to read trustworthy sources and enroll in top-notch courses as soon as you realize you need them.