Many blockchain platforms dream about offering a better alternative to Ethereum. It’s also the main reason why the Fantom network was launched in 2019.
Fantom has a utility coin called FTM, which is available on Ethereum and Binance blockchains. Many exchanges offer FTM to BNB conversions and other trading pairs that include this token.
But can Fantom take on Ethereum, Solana, and other competitors? Check out our review and learn whether the network has the potential to succeed!
How Fantom Works
Fantom is a layer-1 blockchain, indicating it’s the base level of the blockchain architecture. It doesn’t need another network to finalize transactions, and validators receive rewards for their effort.
The platform’s focus is on scalability and security. Fantom is a decentralized network that uses Opera for building dApps. Most platforms use a linear blockchain, but Fantom goes with a directed acrylic graph or DAG.
DAG supports nodes to validate transfers more independently. The primary chain receives them in groups for final validation. It’s how Fantom achieves better speeds than the competition.
aBFT Consensus Protocol
aBFT is short for an asynchronous Byzantine fault-tolerant consensus algorithm called Lachesis. It promises better scalability, security, and quickness compared to other consensus options.
Byzantine Fault Tolerance implies that a system will keep performing even if some nodes are malicious or faulty. Fantom can work as long as there’s no more than a third of problematic nodes.
The term asynchronous means that nodes can execute various commands at different times. aBFT doesn’t have a “leader,” indicating all participants play equal roles. That results in the confirmation process taking no more than a few seconds.
dApps on Fantom
The Opera environment used by Fantom is compatible with the Ethereum Virtual machine. Thanks to that, you can import dApps across blockchains, which is a huge advantage. And there’s a Fantom Virtual Machine, which is a special kit that supports native development on this platform.
Fantom has over 200 dApps already available in the following categories:
- DEXs. Over 25 decentralized exchanges are on this platform.
- Cross-chain bridges. From Multichain to SpiritSwap, you have over a dozen of dApps available.
- Lending and borrowing. Users have anything from Qidao to Abracadabra and Alpaca Finance available on this platform.
- Yield optimizers. The most popular choices include Beefy, Yearn, and Tomb Finance.
- NFT platforms. The limited selection includes Opera House, PaintSwap, ZooCoin, Artion, and NFTKey.
Staking on Fantom
Fantom offers staking rewards if you hold the currency over a specific time. The process uses a proof-of-stake consensus. If you want to activate staking rewards, it’s necessary to invest at least 1 FTM. Also, you need to lock that sum for up to 365 days.
The longer you keep the coins locked, the higher your reward rate will be. If the lock-up period is an entire year, the reward rate is up to 15% on some platforms. But you can expect a 4.63% return for two weeks. Fantom has a bonding time rule, which indicates you’ll have the funds available seven days after unstaking.
FTM entered the market in 2018, with its value not exceeding $0.02 during that year. There haven’t been major price changes for a few years, but Fantom finally started attracting more attention in 2021. The initial jump was to $0.75, but the price exceeded $3 by the end of the year.
Fantom even reached its peak in October 2021, and its value was $3.46. 2022 has been a tricky year for the entire crypto market. FTM lost most of its value but seemed to have stabilized over the last few months. Its volatility is acceptable for a cryptocurrency since the price moves between $0.2 and $0.25.
FTM has 2.77 billion coins in circulation. The release schedule aims to release all 3.175 billion tokens by December 2025.
Fantom delivers attractive features like impressive transaction speed, which is available via the aBFT consensus protocol. The network has a huge potential, but further success will depend on the community’s growth. It seems the Fantom ecosystem is attracting more users, but we’ll see if it can keep that pace during this crypto crisis.
While you can consider trading FTM, don’t forget about other exciting trading pairs. You can find DOGE to BTC and hundreds of other pairs on reputable exchanges, so don’t hesitate to join the action!