It’s a cryptocurrency name you may have heard, but what is Fantom?
Simply put, Fantom (FTM) is a cryptocurrency and native utility token that powers the Fantom Blockchain.
It is a Mainnet coin in the Ethereum environment as an ERC-20 token and a BEP-20 token in the Binance ecosystem.
In the Fantom network, the FTM token is used for staking, On-Chain Governance, and platform fees.
Fantom came under intense scrutiny after Anton Nell, a senior solutions architect, and his colleague Andre Cronje, a prolific developer, announced their departure from the Fantom Foundation without explanation.
How Does It Work?
Fantom is a decentralised, permissionless, open-source smart contract platform for decentralised apps (dApps) and digital assets. It is a blockchain network designed to compete with Ethereum.
The Fantom blockchain mainnet launched in December 2019. It has a network architecture aimed at solving the Blockchain Trilemma by achieving a stable balance of scalability, security, and decentralisation.
Like similar alternatives, it aims to offer more scalability and lower costs than the Ethereum smart contract platform in its 1.0 incarnation.
Users can construct and deploy their own independent networks instead of relying entirely on Fantom’s main consensus layer; a unique feature of this crypto platform.
Each Fantom-based application is developed on its own blockchain. Each Fantom dApp benefits from the parent blockchain’s security, speed, and finality while operating on its own blockchain.
In addition, the construction of separate blockchains is flexible, allowing developers to tailor them to the needs of their specific projects.
Features of Fantom (FTM)
Fantom has unique characteristics as a blockchain network that pioneers a novel design. Some of these characteristics include:
A Platform for Secure, Quick, and Low-Cost Payments
Fantom’s aBFT (asynchronous byzantine fault tolerance) enables speedy and secure payments at a reasonable cost. This is a fundamentally important quality. Because of the new method to an agreement, many believe the entire experience of using the network is comparatively better.
On-Chain Governance
Fantom was one of the first networks to allow governance on the blockchain. Voting is entirely on-chain with FTM, and each coin represents one vote. Stakers can make suggestions for 100 FTM, after which holders can vote on them. Users can express their level of agreement on suggestions on a scale of 0 to 4, with 0 signalling total disagreement and 4 representing complete agreement.
Staking
The staking structure is intriguing. Users can earn 4% APY by staking FTM using a validator node. Plus, the Fluid Rewards programme locks FTM with an APY of 12% for periods ranging from two weeks to a year.
FTM Predictions
Scalability is unquestionably a problem for blockchain networks, particularly those working in the rapidly growing field of decentralised finance (DeFi). Fantom offers several innovative solutions and, as a result, has the potential to make a considerable impact on the market in the future.
A FTM crypto price prediction, however, is not simple.
Fantom’s Long-Term Prospects
For the dApp and DeFi ecosystem, the network has some promise. The network has excellent speed and unique features, such as Fantom Liquid Staking. Furthermore, the network has the power to handle large-scale network interactions.
Success will be determined by the ecosystem’s expansion, which is still undetermined.
As the DeFi sector matures into a more commercial usage level, I believe it is worth keeping a watch.
