FTM Coin and Fantom Network Explained
Fantom Network and FTM coin explained
The network is highly scalable, decentralised, and permissionless, making it an ideal platform for building blockchain-based applications.
Unlike blockchains, which are composed of blocks, Fantom is a DAG-based smart contract platform that uses vertices and edges to represent transactions. This results in faster transaction times, addressing previous blockchain platforms' shortcomings.
The platform was founded by Dr. Ahn Byung Ik in 2018. Since then, the project has become one of the most popular blockchains for DeFi transactions. The native token of the network is the FTM coin, which can be used for governance activities, compensating validators, and network security.
What makes Fantom different?
Traditional blockchain systems like Bitcoin prioritize security and decentralization over scalability, making transactions slower and scaling difficult.
A Bitcoin transaction can take up to 15 minutes to complete. However, the Fantom team aims to address this issue by utilizing a leaderless Proof-of-Stake (PoS) protocol that ensures the network remains secure and decentralised.
The transaction on the Fantom network takes only 1-2 seconds, making it much faster than Bitcoin, and the transaction costs are also lower.
The Fantom Opera mainnet supports full smart contract functionality via Solidity and is compatible with Ethereum Virtual Machine (EVM).
A unique feature of the Fantom network is that it is self-contained, meaning the congestion in one area of the network does not impact other areas. Therefore, every application has its personalised blockchain with specific tokens, governance rules, and tokenomics. This high level of scalability enables an infinite number of decentralised systems that interact with each other while functioning independently in their respective zones.
How Fantom solves the Blockchain Trilemma issue
Fantom's solution to the "Blockchain Trilemma", which refers to the difficulty of achieving a balance between speed, security, and decentralisation, is a significant breakthrough.
By using a permissionless protocol and an asynchronous Byzantine fault tolerance (aBFT) algorithm called Lachesis, Fantom can achieve all three goals simultaneously.
Lachesis, the DAG-based aBFT algorithm that underpins Fantom, outperforms both the Classical and Nakamoto models. It is a more efficient, scalable, and secure alternative that allows developers to create peer-to-peer apps without building their networking layer.
Lachesis is asynchronous, meaning participants can process commands at their own pace without needing a leader or any special function. It is also Byzantine fault-tolerant, meaning that it can achieve consensus in the presence of problematic nodes, including malicious activity.
Additionally, Lachesis provides immediate usability, confirming transactions in just 1-2 seconds without waiting for block confirmations.
To connect Lachesis to other nodes and ensure that the same commands are processed in the exact order, peer-to-peer networking and a DAG aBFT consensus algorithm are utilized. This results in fewer created consensus messages, translating to a faster time to finality and lower communication overhead than synchronous BFT.
FTM coin - The native token
FTM coin is the native currency of the Fantom platform. It is an ERC20 token, which is standard for creating and issuing smart contracts on the blockchain.
It maintains the network's security through a PoS system, and users can send and receive payments and participate in on-chain governance using FTM coin.
The token can also serve as collateral in the upcoming DeFi ecosystem of Fantom. DeFi is an emerging financial technology that eliminates the central control of banks and institutions over financial products, money, and services.
FTM tokens can be safely stored in the platform's official wallet, fWallet, which allows users to stake their tokens, send and receive payments, and access the DeFi ecosystem.
FTM coin use case
Fantom network's primary token, FTM, can be used for paying network fees, deploying smart contracts, and transacting on the platform.
The Fantom network has been designed to achieve speedy finality, allowing faster payment processing that typically takes just around a second. This is made possible by the network's high throughput and low costs, which make the FTM token an ideal option for exchanging money with minimal transaction fees, typically around $0.0000001.
On-chain governance in Fantom's fully permissionless and leaderless decentralised ecosystem involves stakeholders proposing and voting on modifications and improvements through governance. As the governance token, FTM is necessary for participating in the decision-making process for all network-related matters.
FTM can be used for staking purposes to secure the Fantom network. Users can earn rewards through additional FTM coins without needing specialised hardware or software for staking. This process can be easily completed using a computer or a mobile phone, making it accessible and straightforward for users.
FTM coin is utilized for paying network fees on the Fantom blockchain. These fees cover a variety of activities, including the deployment of Fantom smart contracts, the creation of new networks, and transaction fees. By charging these fees, the network can deter malicious users from targeting it with spam attacks or overwhelming the ledger with irrelevant data. While the fees on Fantom are relatively low, they are designed to be sufficiently expensive to dissuade attackers from entering the system. This helps ensure the security and integrity of the network for all users.
The FTM token uses a PoS system to ensure the network's security. To participate, stakers need to lock their tokens, while validators are required to hold a minimum of 3,175,000 FTM. By providing their services, stakers and validators can receive fees and epoch rewards.
## Fantom partnerships and collaborations
The Fantom Foundation has announced numerous partnerships and collaborations, allowing companies to build private or permission-based blockchain networks on the Fantom platform through its plug-and-play feature.
This feature offers businesses access to a wide network of users and DApps, global expansion opportunities, and continual development and upgrades.
Additionally, the Enterprise Fantom program offers a set of guidelines and technical specifications to help accelerate the adoption of blockchain technology among enterprises.
Recently, the company rolled out a significant upgrade called Go-opera, which has greatly improved network efficiencies and increased the speed of transactions. This contribution has been highly valuable to the blockchain industry. It has also received support from notable figures, such as Formula1 driver Pierre Gasly and entrepreneur Mark Cuban, further elevating its reputation.
In the DeFi world, the company has partnered with Clover (CLV) Finance and Superfarm to further augment its growth in non-fungible tokens.
FTM coin price prediction
Fantom has been proven a good investment for its investors up to now. Currently, the market cap of FTM is $1,173,568,896, and the circulating supply is 2,783,637,366. The coin's 24-hour trading volume is $115,699,254, and the current price of FTM is around $0.4224.
As per cryptonews, the FTM coin will hit $0.70 by the end of 2023 if the token can withstand government policies and market fluctuations.
For 2025, the coin is predicted to hit a mark of $1.51. Fantom price prediction by 2030 says the coin's value is set to reach $4.59 in the best case. Considering the minimum and average cases, the coin may be around $3.19 and $3.89, respectively.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.