What is Fantom (FTM)?

What is Fantom (FTM)?

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Fantom is a blockchain project based on a proprietary blockchain. Fantom is decentralized, permissionless, open-source, and a programmable blockchain and smart contract platform.

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Fantom allows for decentralized applications (DApps), and digital assets can be created and launched on its proprietary blockchain. Fantom is one of several blockchain-based projects that is a direct competitor of Ethereum. 

In December 2019, Fantom’s mainnet was launched. The network of Fantom aims to solve the challenges that most blockchains face with scalability, decentralization, and security.

As with any other Ethereum competitors, Fantom aims to provide more scalability and cheaper costs than the traditional first-mover smart contract technology Ethereum 1.0 can. Fantom’s infrastructure is connected by the proprietary Asynchronous Byzantine Fault Tolerant (aBFT) Proof-of-stake (PoS) settlement method, which ensures the network's operating efficiency. 

This network topology was designed and developed to ensure that there is enough security while performance is not compromised.

 

Component Fantom (FTM)
Technologies Lachesis, Directed Acyclic Graph (DAG), aBFT
Market Capitalization $5.9 Billion+
Open-Source Yes
Consensus Mechanism Proof of Stake
Smart Contracts Yes
Founders/Authors Dr Ahn Byung Ik
Launch Date 2017
Circulating Supply of Coins 2,545,006,373 FTM
Maximum Coin Supply 3,175,000,000 FTM
Mining-based Coin? No
Is Fantom a Stablecoin? No
Does Fantom have a burn rate? No
Does Fantom have a Whitepaper? Yes, the white paper can be viewed here

 

Evolution and Development of Fantom

The Fantom Foundation was founded in 2018. In 2018, Fantom generated about $40 million via token sales. OPERA, Fantom's mainnet, was to debut in December 2019.

The Lachesis consensus engine was created by the Fantom Foundation (or Lachesis protocol). It achieves asynchronous Byzantine fault tolerance via a DAG-based approach (aBFT), and it has the following unique characteristics:

  • Asynchronous where participants may process orders at their own pace.
  • It is leaderless, which means that there is no “special” function for any participant in block manufacturing.
  • Byzantine Fault-Tolerant means that 30% of defective nodes are supported
  • Transactions are verified in 1-2 seconds.

 

Fantom uses Lachesis as a consensus layer that may extend to other levels. This might lead to a multi-chain ecology with Lachesis at its center. Opera, an EVM-compatible smart contract platform, was announced in December 2019.

Opera is a PoS layer that employs Lachesis to verify transactions and create new blocks. It now has DeFi apps like SushiSwap and Curve.

In May 2019, Fantom stated that it would work with Binance Chain to create a multi-asset, cross-chain ecosystem. This multi-asset effort would bring new Fantom token standards like ERC-20 and BEP-2. These specifications pave the way for Opera to support Ethereum apps in early 2022.

With the support of Yearn Finance creator Andre Cronje, who is a technical adviser to Fantom, the Fantom Foundation has focused on DeFi use cases. The introduction of Fantom's bridge to Ethereum was suggested and promoted by Andre.

What makes Fantom unique?

To maintain transactional speed and security, Fantom uses a proprietary “leaderless” PoS consensus technique called Lachesis.

aBFT consensus indicates that network data may be handled at various times and that the network can accept up to one-third of users behaving incorrectly or maliciously without affecting network activities.

In Lachesis, the end is near-instant. This implies that transactions are verified and completed in less than one second, unlike Proof-of-Work (PoW) networks.

Without the block confirmation procedure, this aBFT system is quicker and more scalable than Byzantine Fault Tolerant (BFT) systems. The network nodes include their own Directed Acyclic Graph (DAG).

This maintains the chronology of “event blocks” and transactions, with each node attaining internal consensus separately.

  • Finalized blocks are verified on the larger Fantom network after confirmed batches of event blocks.
  • Finalized blocks are formed of verified event blocks from individual nodes.

While autonomous Fantom nodes periodically communicate concerning transactions and events, they do not verify blocks or the network's overall status. So, the system processes transactions swiftly and reaches finality in seconds.

Fantom's PoS process is leaderless, meaning there are no block leaders and no roles for players. During the consensus procedure, all nodes have equal weight and may join or leave at any time.

On Fantom's mainnet, Opera, the Lachesis consensus apparatus nodes host DApps. Opera is a permissionless, open-source development platform.

It supports the Solidity programming language and is integrated with the Ethereum Virtual Machine, giving it complete smart contract functionality (EVM).

Applications based on Fantom may be designed to integrate with Ethereum platforms while keeping transactional efficiency.

To encourage Ethereum-based DApp developers to migrate to Fantom, the Fantom Virtual Machine proprietary software development kit (SDK) will be published with continuous support for the EVM.

 

What are the main uses for Fantom?

Fantom is incredibly versatile. A secure way to install smart contracts on blockchains. Developers may use this to construct new applications that need high speed and low transaction costs but cannot be done on Ethereum.

Fantom is used in blockchain gaming, music streaming, and smart micropayment contracts. Developers may build new applications and launch them on new layer two blockchains.

These projects are EVM compatible, so users may utilize EVM apps with Fantom if they support FTM. That means developers may migrate their projects to Fantom and make their products less expensive.

FTM is Fantom's principal token that is used for staking, transactions, fees, and network governance. Fantom secures the network using FTM coins. Stakers must lock their tokens to receive fees and epoch awards.

 

What is the future potential for Fantom?

Fantom's methodology towards the DeFi and DApp landscapes is unique — as is the nature of its staking incentive scheme.

Additional use cases for Fantom's highly scalable smart contract platform include decentralized applications (DApps) for supply chain management, remittances, and smart city initiatives, some of which are now being tested globally.

With its sophisticated and unique architecture, Fantom's approach to rapid, scalable DApp development is still gaining a foothold in the broader blockchain ecosystem.

Although the developing DApp field is already crowded, the advantages of Fantom's speed and compatibility to DApp developers are considerable, and the platform is primed to gain greater popularity.

 

Price analysis on Fantom

Fantom was initially launched in 2018, and its price analysis over the past4 years are as follows:

 

  2018 2019 2020 2021 to date
FTM Price High $0.024 $0.034 $0.054 $3.164
FTM Price Low $0.003 $0.003 $0.002 $0.018
Market Cap $20.14M $37.91M $113.87M $8.05B

 

Price prediction on Fantom

The FTM token price has gone up significantly this year because of the Fantom Foundation announcing several collaborations and integrations.

The FTM coin graph indicates that the price began the year at $0.01693 and swiftly jumped to $0.8717 in February, receded, and again surged to $0.9571 in May, before rapidly falling to $0.2634 when the cryptocurrency markets crashed.

The value of the FTM coin reached a low of $0.1533 in July before beginning a significant rebound in August.

According to algorithm-based predicting sites, the Fantom cryptocurrency price might begin 2022 at $1.57 and reach $3.69 by its closing. And it projects that it will more than quadruple to $10.1 billion by the end of 2025.

 

Which wallets are the best option for storing Fantom?

The best Fantom wallets on the market right now are as follows:

  1. Ledger Nano X – Hardware Wallet
  2. MetaMask – Browser Extension and Mobile Wallet
  3. Coin98 Wallet – Mobile and Google Chrome Extension
  4. TokenPocket – Mobile Wallet
  5. Fantom fWallet – Web-based Wallet

 

1. Ledger Nano X: The Ledger Nano X is a well-known and reliable hardware wallet. It is compatible with Windows, Linux, and Mac, as well as Android and iOS devices. It is compatible with desktop computers through USB and mobile devices via Bluetooth or USB.

 

2. MetaMask: MetaMask is a wallet and browser plugin for Ethereum that works with Chrome, Brave, Edge, and Firefox. It lets users securely store Ethereum and Ethereum-based ERC-20 tokens in addition to giving users access to DApps.

 

3. Coin98 Wallet: Coin98 wallet is available for iOS and Android devices, as well as a Chrome plugin. All versions can manage FTM and grant access to a wide variety of DApps.

 

4. TokenPocket: TokenPocket is an iOS and Android application. There is now a desktop version and an online wallet creation option. However, they do not look as beautiful as the mobile versions and have some expenditures.

 

5. Fantom fWallet: The Fantom fWallet can be accessed from the official Fantom Foundation DeFi webpage. The wallet can be used on Windows, macOS, iOS, and Android, and it is easy to set up and use. Once setup is done, users will receive their Fantom address, and they are given access to a full suite of features.

 

Where can you buy Fantom?

FTM tokens can be bought, sold, and exchanged on any of the following cryptocurrency exchange trading platforms:

  1. FTX Exchange
  2. Bitvavo
  3. WazirX
  4. Delta Exchange
  5. Indodax

 

1. FTX Exchange: FTX is an online crypto and crypto derivatives exchange. It has made to trade Bitcoin options and other popular crypto products.

Financial Technology Exchange (FTX) facilitates financial transfers using cash and stable cryptocurrencies like Ethereum, Bitcoin, and Litecoin. It only supports a few stablecoins and altcoins.

Retail and institutional traders benefit from FTX's trading services. The software offers several trading choices. FTX services are also designed for market professionals. That is, the site caters to seasoned traders.

 

PROS CONS
The platform is perfect for professional traders and institutional investors Leveraged tokens are extremely risky investments
There is a high daily trading volume which means high liquidity FTX is still a new platform in the crypto space
The exchange caters and welcomes traders and users from the United States  
The KYC process is not tedious, and it helps to increase trading limits  
FTX is known for its low transaction cost  
Traders can purchase crypto using their credit card through the Simplex payment gateway  

 

2. Bitvavo: Purchasing FTM can be extremely simple with the assistance of brokers such as Bitvavo. Bitvavo was formed in October 2017 and has since evolved to become one of the major European exchanges.

Bitvavo caters to both expert and novice traders by providing an easy-to-use buying and selling mechanism and a user-friendly website. In addition, Bitvavo's low trading costs are a significant benefit.

 

PROS CONS
It is a cryptocurrency broker and exchange trading platform all in one There is no telephonic support
There are low transaction costs up to a maximum of 0.25%  
There are built-in wallets and a range of features  
Users can earn interest on their holdings  

 

3. WazirX: WazirX is a crypto exchange trading platform where traders can buy or sell crypto assets using an innovative P2P exchange. The exchange is available for use on desktops and laptops, most web browsers, and mobile devices.

WazirX was developed by a team of expert crypto professionals, and it offers a wide range of digital assets that can be bought, sold, and exchanged.

 

PROS CONS
The exchange and the app feature a user-friendly interface There are high fees charged on crypto withdrawals
STF allows users to create a profile quickly There is no crypto lending feature
The exchange is affiliated with Binance, providing it with a high trust score The exchange has extremely low liquidity because of low 24-hour trading volume
Users can access flexible payment methods including Mobiwik and others  

 

4. Delta Exchange: Delta Crypto Exchange is a reputable online service and crypto platform for digital trading derivatives that has become a hot issue in the cryptocurrency community.

The need for derivative systems for both short and long positions has increased in recent years. Delta Exchange, according to several Delta Exchange online reviews, specializes in cryptocurrency futures and perpetual contracts.

 

PROS CONS
The platform provides an intuitive and user-friendly user interface The perpetual contracts are extremely low
The platform provides perpetual futures contracts on certain digital currencies The liquidity on the platform is extremely low
Users have access to maximum leverage up to 1:100  
The exchange has a renowned referral platform  
There are several trading pairs offered  
The exchange lists a wide variety of crypto assets  

 

5. Indodax: The Indodax cryptocurrency exchange is Indonesia's biggest and one of the world's most popular venues for exchanging and trading cryptocurrencies.

The platform includes a regular TradingView terminal as well as the option for mobile trading. Trading commissions are set at 0% for the maker and 0.30% for the taker, and no initial commissions to start trading.

 

PROS CONS
Several crypto assets can be traded There are no demo accounts or educational materials
There is cold storage of funds which is protected by a high level of information security IDR is the only supported fiat currency
The trading terminal is user-friendly  
The platform is high-speed and boasts large trading volumes  
Customer support is prompt and helpful  
The platform has an innovative mobile app  

You can buy Fantom safely from these cryptocurrency platforms.

What is Fantom’s largest Competitor?

The largest competitor of Fantom is Solana.

The differences between these projects are as follows:

  • Fantom blockchain was conceptualized in 2018 and launched the token on its mainnet OPERA in early 2019. Anatoly Yakovenko launched Solana as a concept in 2017, and the token was released in 2020.
  • The Proof of Stake algorithm used by Fantom is aBFT. It improved performance and scalability. Solana's consensus mechanism is based on proof of history, and the consensus was created with speed and scalability in mind.
  • Fantom supports a variety of development SDKs, including the Ethereum Virtual Machine and Vyper, enabling the creation of smart contracts and decentralized applications. Solana, like Ethereum, uses the Ethereum virtual engine to construct smart contracts and decentralized applications (DApps) both on and off-chain.
  • Fantom supports the creation of decentralized applications and smart contracts using the Solidity programming language. Solana is written in Rust, although it also supports C and other SDK-specific extension languages.

 

What is the Staking Process involved with Fantom?

By staking Fantom, users can help safeguard the network and earn FTM coins. Users do not need any unique equipment or gear because they can easily stake FTM from a computer or phone.

On the Fantom website, users can decide on the number of FTM to stake. Then users can choose the term of the stake, up to a maximum of one year. Users can then consult the relevant page to view the current APR and expected incentives.

 

What can Fantom smart contracts do?

On Fantom's mainnet, Opera, the Lachesis consensus apparatus servers host DApps. Opera is a permissionless, open-source development platform.

It supports the Solidity programming language and is integrated with the Ethereum Virtual Machine, giving it complete smart contract functionality (EVM). Applications based on Fantom may be designed to integrate with Ethereum platforms while keeping transactional efficiency.

To encourage Ethereum-based DApp developers to migrate to Fantom, the Fantom Virtual Machine proprietary software development kit (SDK) will be published with continuous support for the EVM.

 

Is Fantom a Good Investment?

Yes, Fantom is a good investment for the following reasons:

  • Fantom is a smart contract-capable blockchain platform. These apps enable blockchains to do more than just move bitcoin from one user to another.
  • FTM is traded on numerous major crypto exchange and DEX platforms.
  • Fantom's fast transaction processing is one of its key attractions. It can process thousands of orders per second and settle them in 1–2 seconds. Transaction costs are usually negligible.
  • In addition, the Fantom token may be used for other purposes.

 

Fantom could be a decent potential investment due to its fast transactions and powerful smart contracts technology.

Its price has fallen since its peak, and its market value is still less than some of its biggest rivals. It may yet have space to expand.

 

What is the supply and distribution of Fantom?

The entire supply of FTM is 3.175 billion, with 2.134 billion in circulation now. The remainder will be published by 2023.

 

Is Fantom a viable Alternative Coin?

Yes, Fantom is a good alternative coin according to:

  • Traceability – The identities of users are not known even though transactions are public
  • Security – Fantom uses innovative and robust security protocols to protect its blockchain.
  • Transaction speed – Fantom is among one of the fastest blockchains that reaches finality between a second or two.
  • Technology – Fantom uses some of the most innovative technology, including Lachesis, Directed Acyclic Graph (DAG), aBFT, and more.
  • Potential Investment – Fantom is an open-source, decentralized, and programmable blockchain that has a bright future in DeFi.
  • Popularity – Fantom is part of the top 100 alternative coins in the crypto market.

Any cryptocurrency that isn't Bitcoin is referred to as an altcoin.

What are the differences between Fantom and Bitcoin?

Bitcoin is the largest and most popular cryptocurrency that serves as a store of value and a medium of exchange. Fantom, on the other hand, is a programmable platform where smart contracts, digital assets, and DApps can be launched.

 

  Bitcoin Fantom
Price change 20/21 +400% +13,400%
Market Cap $800 Billion+ $5.9 Billion+
Past Hacks None DeFi protocol Grim Finance hacked in 2022
Popularity Very High High
Altcoin Rank #1 – Original Crypto #31

 

What are the differences between Fantom and Ethereum?

Ethereum, which enables decentralized apps and smart contracts, is now one of the most popular and successful cryptocurrencies in recent years.

It is no surprise that hundreds, if not thousands, of rival cryptocurrencies have sprung up to copy and expand on the Ethereum blockchain and its vibrant ecosystem.

Fantom, like Ethereum, is a permissionless, open-source smart-contract platform. Lachesis is the consensus technique used by Fantom's blockchain. This is the consequence of merging aBFT with Proof-of-Stake (or POS).

Validators stake Fantom to produce blocks using PoS. The aBFT protocol, which enables blocks to be produced “independently,” is revolutionary.

 

  Ethereum Fantom
Price change 20/21 +880% +13,400%
Market Cap $460 Billion+ $5.9 Billion+
Past Hacks None DeFi protocol Grim Finance hacked in 2022
Popularity Very High High
Altcoin Rank #2 #31

 

What are the differences between Fantom and NEO?

Neo is an open-source, community-driven platform that leverages the inherent benefits of blockchain technology to create the future's most optimal digital environment.

Fantom is a large, scalable, adaptable, and secure platform for smart contracts.

It is intended to address the shortcomings of earlier generations of blockchain systems. Fantom is a permissionless, distributed, and open-source network management system.

 

  NEO Fantom
Price change 20/21 +160% +13,400%
Market Cap $1.70 Billion+ $5.9 Billion+
Past Hacks None DeFi protocol Grim Finance hacked in 2022
Popularity Medium High
Altcoin Rank #69 #31

 

What are the differences between Fantom and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Fantom, on the other hand, is fungible, which means that one FTM has the same value and characteristics as another FTM.

 

What are the differences between Fantom and Solana?

Fantom blockchain was created in 2018, and its mainnet OPERA deployed in early 2019. Anatoly Yakovenko introduced the Solana idea in 2017 and the coin in 2020.

Fantom's Proof of Stake algorithm is aBFT. It increased speed and scalability. Solana's consensus method was designed for speed and scalability.

Fantom supports the Ethereum Virtual Machine and Vyper SDKs for developing smart contracts and decentralized apps. To build smart contracts and decentralized apps (DApps) on and off-chain, Solana employs the Ethereum virtual engine.

Fantom enables decentralized apps and smart contracts written in Solidity. Also, Solana supports C and other SDK-specific extension languages.

 

  Solana Fantom
Price change 20/21 +9,300% +13,400%
Market Cap $54 Billion+ $5.9 Billion+
Past Hacks None DeFi protocol Grim Finance hacked in 2022
Popularity Very High High
Altcoin Rank #5 #31

 

How to install the Fantom wallet

The Fantom Wallet is a Progressive Web App (PWA). These are simple to maintain across all platforms through a single codebase without needing third-party permission, making them ideal for regularly releasing new features.

To install the Fantom wallet, users can follow these easy steps:

  • Open the Fantom Wallet in Chrome for Windows, Linux, Android, or Safari on iOS and macOS, click on the “+” option in the address bar and visit the pwawallet.fantom.network to create a wallet.
  • Users can select a strong password and re-enter it to confirm it.
  • Users can download the keystone file and use their password to access the Fantom wallet on other devices.
  • Users will be given a 24-word mnemonic phrase and a private key that they must safeguard.
  • The mnemonic phrase must be confirmed before users are given access to their wallet and public address.

 

How to retrieve a wallet

To retrieve a Fantom wallet, users can follow these steps:

  • Select “Restore Wallet” and choose between Keystore, Mnemonic Phrase, or Private key to access the wallet
  • When using Keystore, users must upload their Keystore file, select the JSON file, and type in the password of the keystone file.
  • To use the mnemonic phrase, users must provide their 12- or 24-word phrase to unlock their wallet. Once accessed, users can create a password that they can use when they sign transactions.
  • When using the private key, users must enter their private key (starting with 0x) and select the option to unlock the wallet.

 

Is Fantom a ERC-20 token?

Yes, Fantom is an ERC-20 token.

ERC-20 refers to the standard that is used by developers when they create and launch smart contracts and DApps on the Ethereum blockchain.