Education • 4 min read
By Camilla Marziani
With aspirations to become a fast, reliable and secure platform for smart contracts, Fantom recently hit the headlines by making its way up the rankings of the top DeFi ecosystems by total value locked. For many, Fantom constitutes a serious competitor to Ethereum, for others it could even be the next Solana. Read on to find out more about Fantom and its native token FTM in this week’s spotlight asset.
Fantom is a fast, highly scalable blockchain platform for smart contracts, decentralised finance (DeFi) and decentralised applications (DApps). The Fantom Foundation was founded in 2018 by Dr. Ahn Byung Ik and the project mainnet was officially launched in December the following year. Fantom was designed to be a platform for smart contracts that could evenly prioritise security, decentralisation and scalability, without compromising any of these features.
Developers can build and implement their DApps in a highly user-friendly environment: Fantom Opera. Opera is a permissionless blockchain built by the Fantom Foundation. It is powered by the same consensus mechanisms as Fantom and allows developers to build their DApps, DeFi applications or to implement smart contracts exactly as they would do on Ethereum, as Opera is compatible with the Ethereum Virtual Machine (EVM).
Before deep-diving into some of the features of Fantom, let’s take a look at its Crypto ID and get a clear overview of Fantom and FTM.
One of the most relevant and known features of Fantom is probably its consensus algorithm that is considered the real backbone of the network, which allows Fantom to reach the speed, reliability and security that it promotes.
The consensus algorithm behind Fantom is Lachesis. According to the official website, this DAG-based (directed acyclic graph) asynchronous byzantine fault tolerance (ABFT) consensus algorithm was created
“to overcome the limitations of previous consensus algorithms”.
Lachesis is also described as:
“the ideal option for applications that need high-throughput, fast finality, and bank-grade security”.
Lachesis is an asynchronous consensus mechanism, which means that the participants can take part in the consensus freely and at different times.
It is also leaderless: there are no individuals with special roles, as can be the case with other consensus mechanisms.
Another quality that Lachesis brings to the network is the near-instant finality: the time to finality required is significantly smaller than the one needed with Proof of Work or Proof of Stake. Thanks to Lachesis, transactions on Fantom are confirmed in a matter of seconds.
The asynchronous Byzantine fault tolerance allows the nodes in the network to reach consensus independently. This way, the transactions can be processed without following a specific order, increasing the speed and the throughput of the network.
The nodes store local acyclic directed graphs (DAG) made of event blocks, which also contain transactions. These event blocks are then divided into confirmed and unconfirmed blocks, where the new ones are initially the unconfirmed. The confirmed ones continue the process and get ordered by the honest nodes in the network. The finalised blocks composing the final chain of the consensus are each made by separated buckets of confirmed event blocks.
Thousands of transactions can be processed with Lachesis within seconds with very low transaction fees and without compromising the security of the network.
Security: to participate in the consensus, validators in the network need to hold FTM. Currently, the amount of held FTM required to become a validator node in the network is 500,000 FTM.
Payments: FTM is used to pay transactions fees, staking and block rewards.
Staking: FTM can be staked, and stakers receive rewards in FTM.
Governance: all possible changes to the ecosystem are put to the vote on-chain. FTM holders can vote on these changes and they get as many votes as the FTM they are holding.
Learn more about Fantom on the official website, fantom.foundation. There you will learn more about the status of the project and its mission. Take some time to think about how tolerant to risks you are, how your portfolio is looking in terms of diversification and what results you’d like to achieve when you invest. When you’re done, see how this altcoin will fit in your portfolio and investment strategy.
After careful consideration, are you thinking about buying FTM? We got you! On Bitpanda, you can buy FTM in a matter of minutes. Create and verify your free Bitpanda account, deposit your funds with your preferred payment method - SEPA Instant included - and you’ll be ready to start investing in cryptocurrencies but also crypto indices, precious metals and many other digital assets.
Bitpanda’s Response to the War in UkraineRead more
Bitpanda GmbH ve grup şirketleri (Bitpanda) Türk Parasının Kıymetini’nin Korunması Hakkında 32 sayılı Karar’ın 2/b maddesine göre Türkiye’de yerleşik sayılan hiçbir kişiye yönelik olarak 6362 sayılı Sermaye Piyasası Kanunu başta olmak üzere Türkiye Cumhuriyeti Devleti mevzuatı hükümleri gereği Türkiye’de faaliyet izni gerektiren hiçbir sermaye piyasası faaliyetine dair hizmet sunmamaktadır. Şayet Bitpanda’nın yabancı sermaye piyasalarında vermiş olduğu hizmetlerden Türkiye’de yerleşik kişilerin faydalandığı tespit edilecek olursa tüm zararları kullanıcıya ait olmak üzere bu hizmetler ivedilikle sona erdirilecektir.
As the name would suggest, some cookies on our website are essential. They are necessary to remember your settings when using Bitpanda, (such as privacy or language settings), to protect the platform from attacks, or simply to stay logged in after you originally log in. You have the option to refuse, block or delete them, but this will significantly affect your experience using the website and not all our services will be available to you.
We use such cookies and similar technologies to collect information as users browse our website to help us better understand how it is used and then improve our services accordingly. It also helps us measure the overall performance of our website. We receive the date that this generates on an aggregated and anonymous basis. Blocking these cookies and tools does not affect the way our services work, but it does make it much harder for us to improve your experience.
These cookies are used to provide you with adverts relevant to Bitpanda. The tools for this are usually provided by third parties. With the help of these cookies and such third parties, we can ensure for example, that you don’t see the same ad more than once and that the advertisements are tailored to your interests. We can also use these technologies to measure the success of our marketing campaigns. Blocking these cookies and similar technologies does not generally affect the way our services work. Please note, however, that while you’ll still see advertisements about Bitpanda on websites, the adverts will no longer be personalised for you.