Several blockchains have emerged in recent years that offer all of Ethereum’s features while also solving its network challenges. One of these emerging blockchains is Fantom.
What is Fantom ($FTM)?
Fantom is a layer 1 distributed ledger that enables the implementation of smart contracts on its network in a frictionless way. The platform makes use of an improved DAG — Directed Acyclic Graph — to enable fast and secure transactions by including the seamless interaction of computer nodes in a network. (DAG) smart contract platform was created to overcome the shortcomings of earlier generations of blockchain platforms.
To achieve agreement, Fantom employs a unique Proof-of-Stake (PoS) model, which is implemented as a separate layer dubbed the “Lachesis Protocol.” This protocol’s focus is to be incorporated into the Fantom Opera chain, an EVM-compatible smart contract chain. Essentially, it enables several projects to be developed on the Fantom Operachain while still utilizing Fantom’s core functionality. This includes charging transactions and low transaction costs for all users, all while retaining effective security.
What Is Fantom Trying to Achieve?
Fast, Secure, and Cheap Payment Platform
Fantom’s aBFT enables speedy and secure payments at a low cost. This is one of the most fundamental characteristics, but it is also one of the most significant. Because of the new method to the agreement, the entire experience of utilizing the Fantom network is significantly improved.
Fantom was one of the first networks to include support for on-chain governance. Voting is conducted totally on-chain with FTM, and each coin represents one vote. Holders can submit suggestions for a fee of 100 FTM, and holders can vote on them. Users can indicate their level of agreement with ideas on a scale ranging from 0 to 4, with 0 indicating complete disagreement and 4 indicating complete agreement.
Lachesis as a PoS protocol to secure the network
Lachesis is used by Fantom as a consensus layer that can span various tiers inside the system. Confirmation of transactions takes between 1 and 2 seconds. It is a highly scalable protocol that guarantees the Fantom network runs easily and securely.
Unlike traditional PoS models, in which validators have the last word on transaction confirmation, the opera mainnet is completely leaderless, allowing users to play a unique role in block production. In general, removing leaders significantly improves network security.
By operating their node on the Opera chain, any network user can become a validator. Validating nodes contributes to the network’s security. Additionally, FTM holders can become delegators with 1 FTM.
Fantom features two core technologies
Lachesis protocol: the core consensus layer
Opera: an application development layer
Lachesis is the name of Fantom’s consensus mechanism – an algorithm that participants utilize to agree on the network’s state and verify transactions. Lachesis provides three benefits over other consensus mechanisms such as Proof-of-Stake. Below are the key properties of the Lachesis algorithm:
Asynchronous: Participants have the freedom to process commands at different times.
Leaderless: No participant plays a “special” role.
Byzantine Fault-Tolerant: Functional in a presence of up to one-third of faulty nodes and malicious nodes.
Final: Lachesis’s output can be used immediately. Transactions are confirmed within 1-2 seconds.
The platform is flexible and can be used in conjunction with other development tools like the EVM or the Cosmos SDK. It integrates seamlessly with any blockchain. Lachesis enables the scalability of transaction throughput while maintaining instant finality and mitigating the danger of centralization.
Opera provides a secure and fast development platform for decentralized apps. It is completely open-source and permissionless. It utilizes the speed and finality of Fantom’s aBFT consensus algorithm and is ready for real-world applications without the risk of congestion or extended confirmation delays.
The Fantom Opera mainnet is Ethereum Virtual Machine (EVM) compatible and supports full smart contract functionality through Solidity.
Leaderless Proof-of-Stake: Unlike typical Proof-of-Stake systems, where validators decide on transaction legitimacy, Opera has no leaders. In other words, validators don’t pick valid blocks. Removing leaders improves network security.
Fast Finality: On Opera, a transaction is form and settled after one second.
EVM compatibility and Solidity compiler support: Due to its complete compatibility with the Ethereum Virtual Machine, developers can build, deploy, and run smart contracts just as they would on Ethereum, but on a faster consensus mechanism.
Open-Source: For developers, it is easy to build dApps on the Opera mainnet. All information is available on our GitHub and our code is open-source.
The Role of FTM Token
Payments: The Fantom network’s finality accelerates payments (take around a second). High throughput and cheap fees (about $0.0000001) make the FTM token ideal for money exchange.
Governance: On-chain governance requires FTM so stakeholders can propose and vote on changes.
Staking: FTM can be used to stake to safeguard the Fantom network and obtain FTM tokens as a reward.
Network fees: FTM is used to pay for network expenses such as those associated with implementing Fantom smart contracts, establishing new networks, and even transaction fees.
Network security: The FTM token aims to secure the network by requiring stakers to lock their tokens. Stakers and validators are paid with fees and epoch awards for their services.
How to buy
FTM is available for purchase on all major cryptocurrency exchanges, including Binance and KuCoin, however, Binance has the most volume and the least slippage. FTM can be bought with Bitcoin (BTC), Ethereum (ETH), Tether (USDT), or Binance Coin (BNB).
To stake, you don’t need any particular hardware or device. You can do it directly from your phone or PC.