I. What is Fantom?
Fantom is a smart contract platform for decentralized applications built on DAG (Directed Acyclic Graph) (DApps). Fantom is a crypto DApp creation platform that is highly scalable, decentralized, permissionless, and open source. DAG is a data modeling and structuring system whose networks, unlike blockchains, are made up of vertices and edges. As a consequence, cryptocurrency transactions are represented as vertices that are piled on top of one another.
The Fantom Foundation was founded in 2018 by Dr. Ahn Byung Ik of South Korea, and the smart contract project has since evolved to become one of the most popular blockchains for DeFi transactions. It was designed to address the shortcomings of prior blockchain systems like Bitcoin and Ethereum, such as slow transaction times. FTM is the native token of the Fantom network, and it may be used for governance, validator pay, and network security.
II. History of Fantom
Fantom, which was founded in early 2018, is a Level 1 smart-contracting platform that aims to provide network members with inexpensive, fast, and secure transactional capacity. Fantom Foundation, incorporated in the Cayman Islands and with continued activities in South Korea, is the entity responsible for Fantom development. Dr. Ahn Byung Ik, a computer scientist, established the initiative, and Michael Kong is the Foundation’s chief executive officer. Fantom’s objective is to establish a scalable, accessible platform for tomorrow’s blockchain users with ever-increasing expectations. Various flaws in both proof-of-work (PoW) and proof-of-stake (PoS) designs have emerged in recent years—energy consumption and sluggish transactions for the former, and lower security and decentralization for the latter. This needs more innovation in distributed consensus processes, which is critical to Fantom’s differentiating selling proposition.
The Fantom Foundation has created the Lachesis consensus engine, a novel approach for establishing transactional consensus (or Lachesis protocol). It achieves asynchronous Byzantine fault tolerance via a Directed Acyclic Graph (DAG) based technique (aBFT).
Fantom has used Lachesis as a consensus layer that may be extended to other layers of the system. The Fantom ecosystem might potentially have numerous blockchain layers, with Lachesis at the heart. Opera, an EVM-compatible smart contract platform that was released in December 2019, was the first new layer under Fantom. Opera is a Proof-of-Stake (PoS) layer that validates transactions and generates new blocks with the Lachesis validator set. It currently includes a number of decentralized financial (DeFi) apps, such as SushiSwap and Curve.
Fantom stated in May 2019 that it would collaborate with Binance Chain to increase interoperability through the development of a multi-asset and cross-chain ecosystem. This multi-asset project would create additional Fantom token standards, such as Fantom equivalents of Ethereum’s ERC-20 and Binance Chain’s BEP-2. These standards pave the way for popular Ethereum apps to be included in Opera in early 2021. Opera is a blockchain that is compatible with the Ethereum Virtual Machine (EVM) that can be combined with the Cosmos SDK. The project’s standardized tokens (representing FTM) may be traded on numerous major Level 1 network thanks to different bridges.
Following the mainnet debut, the Fantom Foundation shifted its emphasis to DeFi use cases, with the assistance of Yearn Finance creator Andre Cronje, who worked as Fantom’s technical advisor until March 2022. Andre has advised and promoted Fantom’s multi-chain initiatives, including the establishment of Fantom’s bridge to Ethereum. Following his departure, the project has continued to make progress in the space, despite the fact that the event caused considerable FTM market volatility in the month. However, as Fantom matures, it powers an ecosystem of hundreds of apps and connectors that push the frontiers of smart contract flexibility while chasing cost-effective performance.
III. Striking Features of Fantom (FTM)
Traditional blockchain systems, such as the Bitcoin blockchain, are not intended to scale; instead, they promote security and decentralization. On the Bitcoin network, for example, a transaction might take anywhere from 10 to 15 minutes. Scaling the network in terms of transactions is therefore complicated.
The Fantom team intends to remedy this need by employing a leaderless proof-of-stake (PoS) protocol for network security (i.e., the blockchain does not compromise security or decentralization). A transaction on the FTM network also takes 1-2 seconds to complete. Furthermore, transaction costs are far lower than those of Bitcoin.
The Fantom Opera mainnet provides complete smart contract capabilities through Solidity and is Ethereum Virtual Machine (EVM)-compatible. Fantom’s network is distinct in that it is self-contained, which means that the performance of one area’s traffic congestion has no influence on the performance of other regions of the network.
Because of Fantom’s scalability, each application receives its own personalized (independent) blockchain with unique tokens, governance rules, and tokenomics. Fantom is made up of an endless number of decentralized systems that communicate with one another while functioning independently in their own zones.
IV. Core Technology of Fantom (FTM)
1. Directed Acyclic Graph
A directed acyclic graph (DAG) enables tokenized digital money to function similarly to a blockchain-based currency. A DAG, like a blockchain, is essentially a sort of distributed ledger, which is a decentralized, public record of network transactions.
Computers in a DAG process transactions concurrently and gossip, or communicate, their results with random groupings of surrounding nodes to validate them. While many blockchains are constrained by a single node producing new blocks, DAG nodes may work in parallel, making the system more efficient.
2. Lachesis Consensus Mechanism
Fantom networks require a method for the network to establish agreement. In other words, before finishing interactions and transactions on the DAG’s distributed ledger, network nodes must be able to agree that they are genuine.
Lachesis, Fantom’s own asynchronous Proof of Stake (PoS) consensus process, aims to overcome the blockchain trilemma of security, decentralization, and scalability. This is used by its DAG to record transactions on a distributed ledger that aspires to be unconstrained by some of blockchain technology’s constraints. aims to overcome the blockchain trilemma of security, decentralization, and scalability. This is applied to its DAG to record transactions on a distributed ledger that aspires to be unconstrained by some of blockchain technology’s constraints.
Fantom attempted to prioritize four areas of transaction processing when designing Lachesis, ensuring that their consensus method was:
- Leaderless – Instead of relying on a leader to oversee the validation of each transaction, the network relies on a system of nodes that always keep each other informed.
- Asynchronous – Nodes establish consensus separately and process commands (similar to transactions) at various times.
- Byzantine Fault-Tolerant (BFT) – Only two-thirds of Fantom’s nodes are required to validate a transaction, implying that its network can tolerate up to one-third of erroneous nodes, providing faster processing and decision finality.
- Final – Transaction confirmation is reached in under 2 seconds by the system.
3. Opera and DeFi
Fantom’s Opera network is an ecosystem powered by smart contracts that allow it to host decentralized applications (dapps). Opera was purposefully intended to be compatible with the Ethereum Virtual Machine (EVM), allowing Ethereum projects to be readily integrated into its environment. DeFi initiatives like Curve, Aave, and yearn.finance have deployed and thrived on Fantom in this manner.
Some of the success of decentralized finance on Fantom may also be attributed to its network-specific offers, which are distinct from platforms designed for other blockchains. For example, its stablecoin, fUSD, is tied 1:1 to the US dollar and is meant to power activities in its ecosystem such as decentralized exchanges and lending/borrowing protocols.
V. What is FTM?
1. Detailed Information about FTM
The platform’s native currency is FTM, an ERC20 token (a standard for creating and issuing smart contracts on the blockchain). The currency is used to secure the network using a proof-of-stake technique. Tokens may be used to make and receive payments while also ensuring on-chain governance. Users must have the FTM token to participate in the voting process to suggest modifications and improvements. The currency may also be used to pay network fees, smart contract deployment costs, transaction fees, and other fees.
The token may also be used as collateral for the network’s forthcoming DeFi. DeFi is a new financial technology that eliminates banks’ and institutions’ centralized control over financial goods, money, and financial services. Tokens may be safely held in the platform’s official wallet, fWallet, enabling staking, sending, receiving, and accessing the DeFi ecosystem.
2. FTM Allocation
- Token Sale: 40%
- Staking Rewards: 31.4%
- Advisors/Contributors: 15%
- Fantom Team & Founders: 10%
- Strategic Reserve: 3.6%
3. FTM Token Metrics
- Name: Fantom
- Ticker: FTM
- Token standard: ERC-20
- Token type: Utility, Governance
- Max supply: 3,175,000,000 FTM
- Circulating Supply: 2,541,152,731 FTM
- Contract address: 0x4e15361fd6b4bb609fa63c81a2be19d873717870
4. Use Cases of FTM
- Payments
The Fantom network’s quick finality speeds up payments (takes around a second). Furthermore, the FTM token’s fast throughput and cheap expenses (approximately $0.0000001) make it ideal for money exchange.
- Governance
FTM is essential for on-chain governance, where stakeholders may propose and vote on changes and improvements through governance. Because Fantom is a completely permissionless and leaderless decentralized ecosystem, all network decisions are made on-chain. As a result, the governance token, FTM, must take part in the voting process.
- Staking
Without requiring any extra gear or software, FTM may be used to stake to protect the Fantom network and obtain FTM tokens as a return. You may do it from either your phone or your PC.
- Network Fees
FTM is used to pay network costs such as those associated with implementing Fantom smart contracts or establishing new networks, as well as transaction fees. The charge assures that the network is not an easy target for spam and that a bad user cannot slow down the network or clog the ledger with useless data.
Although the costs on Fantom are very low, they are adequate to deter attackers by making admission into the system prohibitively expensive for a malicious actor.
- Network Security
The FTM coin tries to protect the network by using a proof-of-stake method in which stakers must lock their tokens and validators must have a minimum of 3,175,000 FTM to participate. Stakers and validators are compensated with fees and epoch awards for their services.
VI. How to earn & own FTM?
Crypto users can buy FTM from different centralized exchanges and decentralized exchanges like Binance, FTX, Coinbase, Kraken, Huobi, Gemini, KuCoin, Bitfinex, Gate.io, SushiSwap, 1inch Exchange, Poloniex and others.
VII. Which Crypto Wallets are suitable for FTM?
Here is the list of popular and best Fantom (FTM) wallets:
- Fantom Wallet (fWallet)
- MetaMask
- Coinbase
- Ledger Nano
- Trust Wallet
- Exodus
- Math Wallet
- Edge
- BitKeep
- OKEx
VIII. FTM Recent Developments
The initial Fantom Incentive Program accepted over 100 submissions and distributed over 35 million $FTM to some of Fantom’s top TVL projects, assisting them in growing the Fantom ecosystem and building unstoppable applications on the most accessible and user-friendly blockchain.
Fantom has announced a new 335 million FTM Incentive Program in collaboration with Gitcoin Grants. Gitcoin has an unrivaled track record of supporting web3 initiatives and will let ALL Fantom projects, big or little, seed to established, apply for matching incentive awards using their Quadratic Funding method. The allocations are decided by Fantom’s users, with more FTM matching awards given to the projects that are most loved and supported by their fans.
Fantom users will be able to pick which projects will get more FTM matching benefits through the new incentive scheme. The Fantom Foundation has also stated what goals they hope to achieve with the grant scheme. The first is to broaden the scope of projects being developed in the Fantom Ecosystem, with an emphasis on DeFi, Gaming, NFTs, education, and core blockchain architecture. Finally, the Foundation seeks to decentralize decision-making by rewarding the most worthy initiatives and assisting smaller ventures with lower TVL and more narrow audiences, fostering a culture of trial and error.
The next Gitcoin Grants cycle is slated for June, and to commemorate the occasion, the Fantom Foundation has agreed to match user donations with 3 million FTM in this initial round, and 1.5 million FTM in subsequent rounds. The Fantom Foundation has encouraged all existing and prospective candidates to apply for the forthcoming rounds of Gitcoin Grants, as the previous incentive scheme ends today.
IX. Teams, Funds & Partners of Fantom (FTM)
1. Team
2. Investment Funds
Fantom Foundation has raised a total of $40.1M in funding over 3 rounds. Their latest funding was raised on Jun 22, 2018, from a Venture – Series Unknown round.
3. Partners
X. Where will Fantom (FTM) information be updated?
Currently, Crypto users can fully consult, research, and analyze information about Fantom (FTM) through famous media newspapers such as Coinmarketcap, Coingecko, CoinTelegraph, Coindesk, Coinbase, Decrypt, Bitstamp, Kraken…
These media are constantly updated with useful information, new activities, outstanding events of Fantom, and all the topics surrounding it. Accordingly, Meta Lion Ventures continuously updates the topic of outstanding projects in Blockchain and hot events organized between Meta Lion & partners.
XI. FAQs about Fantom (FTM)
- Who are Fantom’s Founders?
Dr. Ahn Byung Ik, a South Korean computer scientist, created the Fantom Foundation. Michael Kong is the platform’s current CEO. The Fantom team has vast expertise in full-stack blockchain development and intended to design a smart contract platform that prioritizes scalability, decentralization, and security.
Fantom’s staff also includes professional engineers, scientists, researchers, designers, and entrepreneurs, according to its official website. Employees are spread around the globe, reflecting the idea of a distributed platform.
- How is the Fantom Network Secured?
To deliver services and safeguard its network, Fantom employs a customized proof-of-stake algorithm. It is an example of an asynchronous byzantine fault tolerant (aBFT) consensus method known as Lachesis.
Fantom eliminates low-cost attack risk by eliminating leadership among network members, while staking adds additional user incentives to safeguard operations using FTM token holdings.
- How are Tokens earned?
Token holders can stake their coins and earn FTM tokens as a reward. Staking can be carried out directly by using a phone or a PC. There is no minimum staking requirement, and users can stake one token to gain rewards. Furthermore, the platform offers a flexible staking mechanism that allows users to choose a lock-in time between 0 and 365 days. The higher the incentive %, the longer the lock-in time.
- Where to buy Fantom?
Fantom may be purchased via either a decentralized or centralized exchange. The main marketplaces for FTM, according to CoinMarketCap are Binance, KuCoin, and FTX. FTM is supported via cross-chain bridges like as Wormhole and Multichain, and because it is released as an ERC-20 and BEP-20 token, it can be traded on Ethereum’s Uniswap and Binance Smart Chain’s PancakeSwap.
Conclusion
The conclusion on Fantom crypto indicates that it is a viable option for layer 1 implementations. It resolves the blockchain trilemma using the Lachesis consensus algorithm and the Fantom Opera Chain. It’s also worth noting that Fantom isn’t a blockchain implementation. It is, on the contrary, a DAG, or Directed Acyclic Graph, a form of distributed ledger technology. Fantom, being one of the preferred platforms for many prominent DeFi projects and a vibrant ecosystem, has the potential to seize control of the decentralized web in the future.
