Fantom - One Platform, Endless Solutions
Fantom (FTM) was founded in early 2018 by Ahn Byung Ik, a South Korean computer scientist. He is not affiliated with Fantom anymore due to the stringent cryptocurrency regulations in South Korea. Now Fantom is more frequently associated with Andre Cronje, a famous South African Defi Developer. In his early days, he worked in Fantom full time, implementing the peer review distributed ledger technologies. Andre Cronje now remains as the Technical Advisor in Fantom.
Fantom is a network of blockchains that provides ledger services to businesses and applications. Fantom is powered by Lachesis, an advanced DAG-based aBFT consensus algorithm. Blockchains built on Fantom are fast, secure, and highly scalable.
These features allow organizations, businesses, and individuals to develop decentralized applications that can be used in the real world across various industries.
aBFT consensus stands for “asynchronous Byzantine Fault Tolerant” consensus. When a network is said to be “Byzantine Fault Tolerant”, it means that nodes can still reach an agreement on an ordering of events even if part of the network acts maliciously.
Asynchronous BFT allows nodes in the network to confirm event blocks containing transactions without depending on any timing assumptions. This makes the confirmation of transactions by the network faster, without compromising security or decentralization.
When a transaction is confirmed by the network, it achieves complete finality and cannot be changed nor reverted. aBFT consensus reaches agreement on transactions even when some of the messages between nodes are lost, which makes the network more resilient.
Blockchains such as Ethereum and Bitcoin are synchronous, meaning that transactions are appended into blocks, one at a time. They follow the longest-chain rule in which the chain with the most number of blocks determines the final ordering of events. Transactions in earlier blocks have a much higher probability of being part of the final ordering of events compared to more recent transactions.
Therefore, these networks require multiple confirmations to ensure that a transaction is permanently part of the blockchain. This behaviour leads to a slower confirmation of the transactions than in aBFT consensus.
Lachesis is Fantom’s aBFT consensus algorithm. Lachesis is asynchronous, leaderless, Byzantine Fault Tolerant, and final. Therefore, any distributed ledger built on Fantom is very decentralized, secure, and with high-throughput and low finality.
Together with its in-house token FTM, Fantom aims to solve problems associated with smart-contract platforms, specifically transaction speed, which developers say they have reduced to under two seconds.
The Fantom Foundation, which oversees the Fantom product offering, was originally created in 2018, with the launch of OPERA, Fantom’s mainnet, in December 2019.
Source: Youtube.com
Fantom attempts to use a new scratch-built consensus mechanism to facilitate DeFi and related services on the basis of smart contracts.
The mechanism, Lachesis, promises much higher capacity and two-second transaction finalization, along with improvements to security over traditional proof-of-stake (PoS) algorithm-based platforms.
Matching Ethereum, the project appeals to developers looking to deploy decentralized solutions. According to its official literature, its mission is to “grant compatibility between all transaction bodies around the world.”
Its in-house PoS token, FTM, forms the backbone of transactions and allows fee collection and staking activities, along with the user rewards the latter represents.
Through token sales in 2018, Fantom raised almost $40 million to fund development. Fantom is a platform that solves the blockchain trilemma issues which are speed, security, and scalability.
Speed:
When it comes to speed, fantom relies on its high-speed consensus mechanism, Lachesis, which facilitates the tokens or digital assets to function at unprecedented speed.
Security:
Fantom also offers exceptionally high levels of security by using a leaderless Proof-of-Stake protocol to secure the network. Unlike many other existing projects, Fantom does not sacrifice security and decentralization in favour of scalability.
Decentralization: (Lies at its core )
The Lachies: aBFT consensus, algo, is capable of scaling to multiple nodes distributed across the globe in a permissionless, open environment, providing a good degree of decentralization.
aBFT (Asynchronous Byzantine Fault Tolerance) is the highest standard of consensus algorithms. It solves the blockchain Scalability Trilemma, according to which only two of the following three components are possible at the same time: that is Decentralization, Security & Scalability.
Fantom is one of the few integrated platforms which also has strong support for the Defi ecosystem. On Fantom, you can access Defi and trade directly from your wallet using the following simple steps:
Deposit FTM to your wallet (fWallet)
Mint fUSD with your fMint
Use fUSD to trade synthetic assets, or lend it to earn interest and borrow synthetic tokens on fLend
Fantom (FTM) has an ERC20 token, but it can’t be used directly on the Opera mainnet. When you send your ERC-20 to the Fantom Wallet, it will automatically be swapped to Opera FTM.
Here’s a breakdown of the different FTM tokens in circulation at the moment
1. Opera FTM: Used on Fantom’s mainnet Opera Chain 2. ERC20: Exists on the Ethereum network 3. BEP2: Exists on Binance Chain
Note that Fantom Opera addresses share the same structure as Ethereum addresses, but they are not Ethereum addresses.
The FTM token has a number of use cases within the Fantom ecosystem. It plays an essential role in a well-functioning, healthy network.
1. Securing the network
Fantom uses a Proof-of-Stake system that requires validators to hold FTM. Anyone with at least 3,175,000 FTM can run their own validator node to earn epoch rewards and transaction fees. Every FTM holder has the option to delegate their tokens to a validator (while keeping full custody of their funds) to receive staking rewards. Validators then take a small fee for their services.
By locking in their FTM, validators help the network to be decentralized and secure.
2. Paying for network fees To compensate validators for their services and prevent transaction spam, every action performed within the Fantom network costs a small fee. This fee is paid in FTM.
3. Voting in on-chain governance Decisions regarding the Fantom ecosystem are made using transparent on-chain voting. Votes are weighted according to the amount of FTM held by an entity. Basically, 1 FTM equals 1 vote.
With FTM as the governance token, validators and delegators can vote on network parameters such as block rewards as well technical committees, and so forth.
4. Additional use cases FTM will be used as collateral on the upcoming Fantom DeFi suite, fantom.finance.
Staking is used to secure the Fantom Network. Opera network uses Proof-of-Stake: validators and delegators contribute to securing the network by staking their tokens and will receive rewards in return.
You can stake Fantom’s FTM token with as little as 1 FTM.
Staking is easy: 1. Install the PWA wallet (desktop/mobile) 2. Transfer your FTM from an exchange or an ERC20 wallet to your Opera address 3. Choose a reputable validator and click on stake. That’s it!
The staking rewards for FTM are 12% APR.
The rewards on Fantom are dynamic and decrease as the staking participation increases.
Fantom token (FTM) can be purchased through several exchanges:
1. Binance Exchange - you can purchase FTM on Binance using your mobile phone or desktop. You only need to follow the step as instructed. You can also receive a 25% discount on trading fees using Binance Coin (BNB) instead of cash. Use the link above for a bonus 10% discount.
2 . Crypto.com MCO/CRO - this is a favourite for many reasons, as you can earn interest on a wide variety of coins, as well as apply for a crypto debit card. This operates similar to a pre-paid Visa card, where you top up before use, however, you can choose to top up with cash or crypto. For example, you can transfer Bitcoin (BTC) to the card and spend it like cash, or let it sit in the account and earn interest. Rates of interest on deposits vary from 2% up to 10% or more. New investors may receive up to $50 when using the above link to create a new account.
3. Coinspot- you can purchase FTM on Coinspot. You only need to follow the step and if you sign up using this link above you will get $10 worth of Bitcoin.
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