What is Fantom (FTM)?
Fantom is an DAG-based (Directed Acyclic Graph) smart contract platform designed for Decentralized Applications (DApps). Also what is Fantom central or decentralized?
Fantom is highly efficient, scalable, decentralized, permissive and open-source platform that is used to develop crypto DApps. DAG is an information structuring and modeling technology. Its networks consist of edges and vertices as opposed to blockchains composed of blocks. Therefore, cryptocurrency transactions are represented as verticles and are placed over one another.
Simply put the blockchain system is similar to an actual chain, while DAG’s design looks like graphs. The Dr. Ahn Byung Ik of South Korea founded the Fantom Foundation in the year 2018, and the project’s smart contract has since grown into one of the most well-known blockchains that can be used for DeFi transactions.
It was designed to alleviate the weaknesses, such as the long transaction time of earlier blockchain platforms such as Bitcoin or Ethereum. FTM can be described as the Fantom network’s primary coin and is used to conduct governance functions, compensating validators, and ensuring security for the network.
This guide for beginners on the Fantom blockchain protocol is designed to make the community aware of Fantom’s blockchain protocol. Fantom ecosystem by describing exactly how Fantom Network functions and how you can buy Fantom (FTM) along with the difference in FTM in comparison to Polygon ( MATIC).
What’s so special that is unique Fantom?
Traditional blockchain systems, like Bitcoin, for instance Bitcoin blockchain, haven’t been designed to scale; instead they focus on security and decentralization. Transactions within the Bitcoin network, for instance could take between 10-15 minutes. The result is that scaling the Bitcoin network with regards to transactions extremely difficult.
The Fantom team is aiming to address this issue with a leaderless proof of stake (PoS) protocol employed to secure this network (i.e. that the blockchain doesn’t compromise safety or decentralization). Furthermore, transactions through the FTM network can take a couple of seconds to be completed. Additionally, the costs for transactions are lower than the costs of Bitcoin.
Fantom Opera’s Fantom Opera mainnet is Ethereum Virtual Machine (EVM)-compatible and has full smart contract capabilities through Solidity. Fantom’s blockchain is unique by being self-contained which means that the traffic congestion in one area is not a factor in other parts that make up the system. What, then, makes Fantom is its own cryptocurrency?
Every application is given their own personal (independent) blockchain that is based on specific tokens, governance guidelines and tokenomics thanks to Fantom’s extremely high scale. The countless decentralized systems that comprise Fantom are interconnected but operate in their own regions.
How can Fantom help solve the blockchain trilemma?
The “Blockchain Trilemma,” that Fantom solves is an essential problem. The blockchain trilemma relates to the inability of striking the right balance between security, speed and decentralization while at the same time. Fantom utilizes an unpermissionless protocol and aBFT to handle transactions in real-time to ensure security and decentralization, which makes the process faster.
Fantom’s DAG-based Asynchronous Byzantine fault tolerance (aBFT) algorithm, Lachesis, outperforms both the Classical and Nakamoto models. Lachesis is a better more scalable and secure alternative that lets developers build peer-to-peer applications without having to build their own network layer.
Lachesis is asynchronous. This means that participants are able to execute the commands according to their speed. Additionally, there is no leader and no one performs an “special” function. Furthermore, Lachesis is Byzantine fault-tolerant (BFT) This means that it is able to reach consensus in the face of nodes that are problematic, such as the possibility of malicious actions. Additionally, Lachesis’ output is immediately usable. Transactions are confirmed within 1-2 seconds. There’s no requirement to wait for confirmations for blocks.
Peer-to-peer networks and the DAG ABFT consensus algorithm are employed for connecting Lachesis with the other Lachesis Nodes in order to make sure that identical orders are processed within exact sequence. The same event occurs during different elections, which results in a lower amount of consensus messages created. In the end, when compared to BFT that is synchronous, Lachesis is able to achieve a faster time to completion and lower overhead for communication.
What exactly is FTM is used to do?
The Fantom network’s main token is FTM It is used to pay for governance, payments fees, staking, and to safeguard the network.
The Fantom network’s rapid completion makes payments quicker (take approximately 1 second). Furthermore, its high throughput and low cost (roughly $0.0000001) makes the FTM token ideal for exchange of money.
To ensure on-chain governance, FTM is required where participants can make suggestions and vote on changes and improvements via governance. Since Fantom is a completely autonomous and leaderless ecosystem On-chain governance is responsible for the decisions made by the network. So, the governance token, FTM, must participate in the vote process.
FTM is a way to to protect the Fantom network, and also to earn FTM tokens in exchange for rewards without the need for any specific equipment or software. It’s possible to do this from your smartphone or computerit’s as easy as it gets!
FTM is utilized to pay for network costs, like charges for the deployment of Fantom smart contracts, the creation of new networks or transaction fees.
The fee guarantees that the network does not become an ideal target of spammers and that a malicious user will not cause problems with speed or block the ledger with irrelevant information.
Although the charges for Fantom are not too high however, they’re sufficient to deter attackers by making the entry into the system extremely costly for an obnoxious actor.
Security of the network
Through an underlying proof-of-stake mechanism that is based on proof-of-stake, the FTM token is designed to protect the entire network, where stakers are required to secure their tokens and validators must hold an amount of at least 3,175,000 FTM in order to participate. Epoch and fee rewards are paid to stakers as well as validators for the services they provide.
How can I buy Fantom cryptocurrency?
FTM can be purchased through all major cryptocurrency exchanges, including Binance or KuCoin However, Binance has the highest volume and has the lowest slippage in exchange. FTM is available for purchase using Bitcoin ( BTC), Ethereum ( Ethereum) or Tether ( USDT) or BNB.
To purchase Fantom tokens through Binance make use of one of the methods listed below:
If you’re an avid KuCoin user, go through the following steps for buying FTM:
How do I how do I store FTM?
Due to the risks associated with custodial You should not keep you FTM through exchanges. Additionally, you’ll be unable to earn the rewards for staking if you depend on custodial services. FTM and Fantom-based currencies like USD Coin ( USDC) and fUSDT, are able to be securely stored in wallets such as the fWallet (Fantom wallet), MetaMask, Ledger and many other well-known mobile wallets.
You can transfer, receive the FTM and gain access to the Fantom DeFi community with the fWallet. MetaMask lets you communicate with Fantom DApps and stores FTMs on the mainnet.
The most well-known hardware wallet, and the most secure way to store your mainnet FTM as well as engage via DApps Fantom can be found in Ledger Nano. Ledger Nano. Coinbase wallet allows over 100,000 users keep FTM and connect to FTM on the Fantom network. Other wallet types that work with FTM tokens can be found here. FTM token are available here..
Participating in the Fantom network
The consensus algorithm for proof-of-stake is the core of the staking procedure at the platform for scalable blockchain for DeFi known as Fantom.
To verify transaction on to validate transactions on the Fantom networks, users have be able to place a stake on your FTM token. In exchange, you will be awarded FTM tokens. Only you are able to access the staked tokens, and unstake or unlock them at any time you’d like to.
There are however some staking rules that stakers and stakers at stake nodes must follow:
Follow these steps If the idea of taking a stake FTM is something that interests you:
You can estimate your staking rewards here. However, we’ve created a short reward list in the following table:
If you decide to untake your FTM holdings but decide later to restake them, it is possible to opt to do this by choosing”claim” and then the “claim and restake” option.
What is the difference between the claim of rewards as well as claiming and restaking them?
If you make a claim for rewards, your bank account will be empty of any outstanding rewards. But, you’ll be able to increase your rewards with the same conditions of your first assignment if you claim and redeem.
If you decide to lock your tokens for a period of time at the highest APR, as an example, you’ll be able to get the same APR when you need to restake your tokens later in the lock-up. However If you’d like to invest your reward following the time you’ve claimed the tokens, you’ll have to create an entirely new delegation.
Is Fantom an investment worth it?
With that the market is volatile cryptocurrency market, no investment will provide the rewards you expectations. Therefore, you must investigate the protocols, teams and sponsors prior to making a decision to invest your money. Don’t invest more than you are able to afford.
Although it is a highly flexible platform for enterprise apps and cryptocurrency DApps, Fantom is not an investment with no risk. Why should you invest with Fantom (FTM)? The crypto market that is not regulated is susceptible to frequent cyber threats, which makes FTM an unsecure investment option as are many other investments. Thus, you should make your investment at your own risk.
Stay informed about the various ways the heists of crypto occurand ensure your safety by taking various security measures , such as 2FA, staying away from custodial wallets, etc.
FTM Vs. MATIC
They both Fantom along with Polygon ( MATIC) are both altcoins that provide the ability to scale up existing blockchains. They differ in many ways as is explained in the following paragraphs:
The future of Fantom cryptocurrency
It is more secure and environmental green than conventional cryptocurrencies such as Bitcoin and Ethereum, Fantom uses the PoS consensus method as well as Lachesis (Fantom’s ABFT the consensus method) to establish the rules of communication between nodes.
In the future, Andre Cronje hinted that the community could see some the addition of new features to the Ve(3,3) project. According to reports, the project is the project is launching their very own “emission-based” coin on Fantom to ensure the balance of the Fantom community’s users.
Furthermore, with the increasing competition in the crypto market that’s why the founders and developers are constantly looking for sponsorships and partnerships to boost the efficiency of the platform as well as build trust among the community.