Want to get in on the action? You can buy Fantom on Gemini!
In 2021, Ethereum gas fees soared. These fees can reach hundreds of dollars for a single transaction at peak times. Because of this, many users are looking for cheaper alternatives that offer similar decentralized services. These new projects hope to bring speed and low fees to the table. Fantom (FTM) is one of these projects. Fantom allows developers to create smart contracts and decentralized finance (DeFi) tools for a fraction of the cost it would be on Ethereum’s blockchain.
Overview of Fantom (FTM)
Fantom works by creating a new blockchain each time someone wants to deploy a new project. These new blockchains are directed acyclic graphs (DAG). These blockchains are layer 2 solutions, meaning they are based on Fantom’s mainnet but inherit their own unique characteristics. This is meant to help with scalability, as users can deploy projects that do not take up space on the layer 1, or base, blockchain.
Fantom’s layer 1 blockchain is called Lachesis. This blockchain essentially handles the brunt work of the layer 2 projects. Lachesis is responsible for consensus, or the verification of transactions. This is done through a modified proof of stake (PoS) system.
Lachesis’ modified PoS works similarly to traditional PoS systems but enables changes to be made to its blockchain faster. The major change is within governance. Typically, validators will vote to verify events on the blockchain over a certain time period. Lachesis combines several time periods and has a single vote for them. This allows for a smaller number of elections and gives the blockchain the ability to speed up the transaction process.
FTM is the blockchain’s token and is used in a variety of scenarios. It is used by developers to pay fees for deploying projects. It can also be staked for interest. Finally, it can be used as a governance token, giving holders voting rights on proposals that can determine the future of the project.
Fantom is already in use by several major projects. Decentralized exchanges (DEXs) such as SushiSwap and Curve are integrated with Fantom, along with wallets such as MetaMask, Trust wallet and Ledger. Over the past few years, Fantom has attracted some of the largest crypto projects to its blockchain.
Fantom (FTM) History
Fantom was founded by South Korean computer scientist Ahn Byung Ik. However, the current CEO is Michael Kong. The team has engineers and scientists around the globe looking to provide scalability, security and decentralization to their users.
FTM launched in late 2018 and began trading for around $0.02. The launch was an initial coin offering (ICO) and was used to raise $40 million in funding for the project. Since then, the token has risen dramatically and reached a high of nearly $3.50 in late 2021. The token is currently trading for around $2.
Is Fantom (FTM) Useful?
Fantom is very useful in a variety of situations. The project allows anyone to safely and securely deploy smart contracts onto blockchains. This is a powerful tool that can allow developers to create new projects that need high throughput and low transaction cost, which can’t be done on Ethereum. Some examples of uses for Fantom are in blockchain gaming, music streaming and smart contracts for micropayments.
To deploy new projects, developers can code their ideas and deploy them on a new layer 2 blockchain. These projects are Ethereum virtual machine (EVM) compatible, meaning users can easily use applications made on Ethereum with Fantom so long as the application supports FTM. This is powerful because developers can move their projects over to Fantom to make their projects more affordable to use.
Where To Buy Fantom (FTM)
FTM has quickly risen through the crypto ranks and is currently in the top 35 in terms of market capitalization. Because of this, a handful of trading platforms have begun to offer the token for trading. While there are many platforms that support the token, FTX and Gemini stand out because of their ease of use, low fees and security.
Opening an account on Gemini or FTX is easy, and users can typically begin trading within 24 hours. Once you have a verified and funded account, you can purchase FTM on either platform.
Fantom (FTM) Blockchain Versus Other Blockchains
Fantom’s main competitors are Ethereum and Ethereum alternatives, such as Cardano, Avalanche and Solana. These are all blockchains that allow users to deploy decentralized applications. However, there are a few distinct differences between Fantom and these other blockchains.
The main difference between Fantom’s blockchain and others is that it creates a new blockchain for each smart contract that is deployed. This allows the workload to be spread across blockchains and supports scalability. Instead of storing all information on a single chain, Fantom spreads it out across hundreds of blockchains. These blockchains are all connected and use the same consensus model.
The consensus method is also slightly different than most blockchains. Most competitors also use PoS, except for Ethereum. However, Ethereum plans to unveil ETH2.0 in 2022, which will transition its structure to PoS. While PoS is already very efficient, Fantom hopes to make it even more efficient by combining nodes and reducing the amount of times validators have to actually vote.
While Fantom provides a very similar service to its users, it incorporates unique technology to make the process more efficient. However, changes in popular blockchains, such as ETH2.0, may rival these unique and powerful technologies.
How To Store Fantom (FTM) Safely
While a trading platform is the easiest place to store crypto, it may not be the safest. Hardware wallets are physical devices that store the private keys needed to send crypto. Because of this, they are often regarded as the safest and most secure way to store crypto.
Ledger is a brand of hardware wallet that supports the sending, receiving and swapping of FTM. It currently offers Nano S and Nano X models. The Nano S provides basic security, while the Nano X focuses on ease of use with features such as a larger screen and Bluetooth connectivity.
Fantom (FTM) Versus Competitors
Fantom could be a leader in blockchain project deployment. However, it faces major competition in Ethereum and Ethereum alternatives. If Fantom can distinguish itself from its competition and attract new projects, it could become a major player in the space. However, if ETH2.0 is successful or a new blockchain is proven to be better than Fantom, it may not be as useful.
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