What is Fantom and how does it work?
Fantom is an open-source, customizable, and scalable platform that aims to overcome the limitations of the older generation blockchains. As we mentioned earlier, Fantom supports smart contracts. So, it is considered one of the many blockchains that present the same functions as Ethereum, but in a more scalable way. In fact, providing scalability without victimizing security and decentralization is Fantom’s main goal.
At the heart of Fantom’s ecosystem is its unique consensus algorithm. Fantom uses a special consensus algorithm called “Lachesis”. It is an asynchronous Byzantine Fault Tolerant (aBFT) consensus algorithm. Asynchronous Byzantine Fault Tolerant algorithms let data be processed at different times and there is no need for all data to be processed at the same time. In other words, there is no need for all nodes to verify all transactions or update the state regularly. This increases Fantom’s speed significantly and lets its transactions be finalized in only a few seconds. Besides, this network tolerates up to one-third of participants doing malicious activities.
Different projects can use Fantom’s blockchain and consensus algorithm to run their own independent decentralized networks. They can have a sort of internal consensus and create independent blocks called “event blocks”. These event blocks are finally compiled into finalized blocks.
Fantom’s consensus algorithm is considered proof of stake but it doesn’t have roles like leaders or master nodes. All participants have equal contributions and they can join or leave whenever they wish.
Another interesting feature of Fantom is that its mainnet called Opera uses the Ethereum Virtual Machine and is therefore compatible with Ethereum. So, you may have guessed that all Ethereum-based dApps can easily be transferred into Fantom.
A set of these factors makes Fantom an appropriate choice for those who wish to run decentralized applications and projects in the most scalable way possible. As you may know, processing a transaction in a network like Ethereum takes 15 seconds to even 5 minutes and that’s literally too high. However, Fantom’s compatibility with Ethereum lets it benefit from the advantages of this popular blockchain.
FTM Token; functions and wallets
FTM is Fantom’s native token that has been developed based on two standards of ERC-20 and BEP-2. At the time of writing, FTM is being traded at $0.355. At its peak, this token’s price has reached 3 dollars. Like many other tokens, this token is used for securing the network, staking, taking part in the governance, and paying the fees. Besides, it can also be used as a means of investment and for doing payments.
You can start staking Fantom with even 1 FTM, but if you want to run a validator node, you have to hold at least 3,175,000 FTM (according to the official website). FTM is also a governance token and it’s required for voting on the proposals.
Several cryptocurrency wallets exist that you can use to hold FTM. fWallet is Fantom’s official wallet and so a good choice. From other options, we can refer to:
• MetaMask
• Ledger
• Huobi Wallet
• Coin98
• OKEx
• Edge
Conclusion
Considering Fantom’s unique features that we went through in this article, this cryptocurrency network seems to have a promising future. Fantom entered the top-100 cryptocurrencies by market cap in less than 5 years and this is also a good sign for its potential growth. Fantom dreams of penetrating all aspects of our lives and revolutionizing all centralized services, from global payments to authentication and even the Internet. Do you think it will succeed to make this dream come true?
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