By Richard Davis
At its core, Fantom operates on a DAG (Directed Acyclic Graph) model, which sets it apart from traditional blockchain-based systems. So, where does Fantom stand on the centralized vs. decentralized spectrum?
Being a decentralized, open-source, and permissionless platform, Fantom serves as a fertile ground for building crypto-focused DApps. Rather than a linear chain of blocks like in typical blockchains, the DAG system in Fantom constitutes vertices and edges. In this setup, cryptocurrency transactions take the form of these vertices, layered sequentially.
In simpler terms, while a traditional blockchain resembles a chain, the DAG architecture is more graph-like. Established in 2018 by South Korea’s Dr. Ahn Byung Ik, the Fantom Foundation sought to address issues like prolonged transaction durations inherent in older blockchain platforms, including stalwarts like Bitcoin and Ethereum.
FTM, the flagship cryptocurrency of the Fantom network, plays diverse roles, from governance to rewarding validators and ensuring robust network security.
The Fantom Distinction: What Makes It Stand Out?
While renowned blockchain systems like Bitcoin prioritize security and decentralization, they often do so at the expense of swift transaction times – with waits that can span up to 15 minutes. This poses challenges when it comes to achieving scalable transaction capabilities.
Fantom seeks to bridge this divide by harnessing a leaderless proof-of-stake (PoS) consensus, maintaining a balance between security and decentralization. A standout feature? Transactions on Fantom are lightning fast, often culminating in just 1-2 seconds, and come with a price tag considerably lower than its counterparts like Bitcoin.
Further adding to its versatility, the Fantom Opera mainnet aligns seamlessly with the Ethereum Virtual Machine (EVM), supporting a rich array of smart contract functionalities using Solidity. What’s particularly noteworthy about Fantom’s network is its compartmentalized structure, ensuring that congestion in one segment doesn’t trickle down to others.
In essence, each application on Fantom is bestowed with its dedicated blockchain, each with its bespoke tokens, governance mechanics, and tokenomics. This modular structure empowers an expansive, interconnected network of decentralized systems, each operating in their respective domains yet cohesively linked.
FTM’s Multifaceted Role in the Fantom Network
FTM, the flagship token of the Fantom network, plays various pivotal roles ranging from payments to bolstering network security. Here’s a breakdown of its functions:
1. Payments
Thanks to Fantom’s rapid finality, transactions using FTM tokens are executed almost instantly, often within a second. Given its high throughput capabilities coupled with negligible transaction costs (approximately $0.0000001), FTM emerges as an efficient medium for monetary exchanges.
2. Securing the Network
FTM’s role extends to ensuring the network’s safety. Adopting a proof-of-stake mechanism, the token aids in maintaining the network’s sanctity. Stakers commit their tokens as collateral, while validators, to get onboard, must hold a minimum of 3,175,000 FTM. Both stakers and validators are compensated with fees and epoch rewards, acknowledging their contribution to sustaining the network’s integrity.
3. Staking
One of FTM’s primary utilities is staking. Users can stake their FTM tokens to bolster the network’s security, and in return, they receive FTM rewards. The beauty of this process is its simplicity; users don’t need specialized hardware or software. A basic computer or even a smartphone suffices.
4. Network Fees
Deploying smart contracts on Fantom, initiating transactions, or creating new networks, all come with associated fees, which are payable in FTM. While these fees are modest, they serve a dual purpose. Firstly, they act as a deterrent against frivolous data clogging up the system. Secondly, they present a significant entry barrier for potential attackers, ensuring the system’s resilience against malicious intents.
How to Acquire Fantom (FTM)
Purchasing on Binance
FTM can be bought on Binance using Bitcoin (BTC), Ethereum (ETH), Tether (USDT), or BNB.
Purchasing on KuCoin
For KuCoin users, simply follow their platform-specific steps to secure FTM.
Storing FTM
For security, avoid keeping FTM on exchanges due to custodial risks. For safekeeping, opt for fWallet, MetaMask, Ledger, or the Coinbase wallet. These allow interactions with Fantom DApps and offer staking functionalities. Ledger Nano stands out for hardware protection, while others offer easy access to the Fantom ecosystem. Always explore and choose a trusted wallet supporting FTM.
In summary
Fantom stands out for its environmental efficiency and security, leveraging PoS consensus and its unique Lachesis algorithm. With future innovations like the Ve(3,3) project and potential “emission-based” coins, Fantom aims for ecosystem balance. As the crypto landscape evolves, Fantom remains committed to fostering partnerships and bolstering platform performance to earn and retain community trust.