What is Fantom (FTM) cryptocurrency and how does it work?

Fantom is the future, or more specifically, it is a decentralized application. Some digital currencies exist mainly as an object of investment. On the other hand, some serve as utility tokens created for digital economies. And still others are aimed at strengthening or replacing monetary units such as the euro or the pound. Fantom is primarily dApps. It is an ecosystem of technologies and tools that support the aggregation of smart contracts into applications. The Fantom platform is optimized to conduct smart contracts quickly and inexpensively, allowing dApps to reach their full potential. Ambitious? Certainly. Inspiring? Certainly. Alluring? Oh, without a doubt. Read on to dive deeper into this smart contract platform and the unique vision that truly lies within.

What is Fantom (FTM)?

The Fantom Foundation describes Fantom as a “scalable, secure, high-performance smart contract platform.”

The platform has special features.

The Fantom Opera blockchain is a kind of foundation. It is an open-source network for acyclic graphs that is compatible with the Ethereum Virtual Machine. This allows it to support existing smart contracts and create new ones that would interact with contracts on the Ethereum platform.

Transactions on the Fantom platform are verified by Lachesis, a leaderless Proof of Stake system that uses a custom asynchronous Byzantine, fault-tolerant consensus mechanism (ABFT). Validations carried out by it are faster, less costly compared to mechanisms that reach consensus through conventional Proof of Work or Proof of Stake protocols. ABFT systems complete the transaction in seconds, instead of minutes.

Each Fantom-based dApp operates its own blockchain network. These blockchains can have custom tokens, economies, and governance rules. All of them benefit from the benefits of the Lachesis consensus mechanism and can interact with dApps running on other blockchain networks inside the Fantom platform. This is why Fantom sometimes describes its system as a “network of networks”.

The Ethereum Virtual Machine (EVM) compatible virtual machine allows Opera’s blockchains to execute Ethereum smart contracts and integrate with Ethereum-based dApps. The Fantom utility token (FTM) is used to reward validators, conduct financial transactions, secure governance rights, and pay network fees. FTM can be found on every major cryptocurrency exchange, including Kriptomat.

Fantom’s decentralized financial system consists of three components:

fMint allows you to mint fUSD, which is a stablecoin that refers to the value of the US dollar in a 1:1 ratio. fUSD coins can be freely exchanged for FTM.

fSwap is a decentralized exchange that supports the exchange between over 175 synthetic tokens, including fBTC and fETH.

fLend allows you to generate income by lending FTM and fUSD to Fantom’s liquidity pool. You can also use fUSD funds as collateral when buying and trading synthetic tokens. In addition, Fantom provides a wallet designed to store FTM, fUSD, and synthetic tokens. Fantom DeFi transactions can be executed directly from the wallet.

How does Fantom work?

Fantom components are modules that can be combined together by dApp developers. All components of the platform have independent tools and integration links that allow them to be connected to each other into applications on the Fantom smart contract platform, in exchange for a small financial outlay.

One way to understand the Fantom platform is to imagine it as a full-service ledger for dApps. Each dApp has a user interface, a kind of database and a unique code that allows you to perform calculations and other functions. In addition to this, each of the dApps benefits from a reliable, distributed, decentralized ledger to validate and record transactions. Fantom provides the ledger – not with a simple blockchain and API, but with a full set of tools that provide an easy-to-use interface that allows developers to implement dApps.

Developers using conventional blockchains are struggling with the so-called “blockchain trilemma”, which requires a balance between transaction speed, security, and decentralization. Ledgers based on Bitcoin, Ethereum, and other popular platforms can fully optimize one or two of these factors, but not all three.

The Fantom team claims that their ABFT consensus protocol provides full security and decentralization, while maintaining much faster transaction speeds at a low cost. Simple FTM transactions are completed in about one second, and their average cost is $0.0000001.

Who Are the Founders of Fantom?

Fantom was founded in 2018 by a person named Ahn Byung Ik, a computer scientist from South Korea. Prior to founding Fantom, Ahn served as president of the Korea Foodtech Association and created a successful Yelp-like platform called SikSin.

Ahn left Fantom in 2019. Since February 2019, Fantom has been led by the Fantom Foundation – a corporation based in the Cayman Islands. Fantom Foundation is a team of 28 engineers, scientists, researchers, designers, and entrepreneurs.

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