What is Fantom (FTM)?

Fantom (FTM) is a decentralized smart contract blockchain. It is a powerful open-source and permissionless tool for building and deploying decentralized applications (DApps). Developers can create, compile, and execute smart contracts on the Fantom network as they do on Ethereum. The FTM token is the currency powering this platform.

Unlike other blockchain platforms, Fantom (FTM) runs on the layer-1 blockchain, which uses vertices and edges rather than blocks to model and structure data in the DAG. Thus, vertices represent transactions and are placed on top of one other. The DAG architecture is more like a graph than a chain.

Who Created Fantom (FTM)?

Fantom is a South Korean smart contract initiative started by Dr. Ahn Byung Ik in 2018 and has become a widely used blockchain for DeFi transactions.

It was intended to overcome the limitations of existing blockchain platforms, such as Bitcoin and Ethereum, such as slow transaction times. It is the native coin of the Fantom (FTM) network, used for governance, rewarding validators, and securing the network.

Fantom’s mainnet became life in December 2019 after a $40 million funding round; decentralized finance (DeFi) can be supported by its fast and cheap blockchain, which the country demonstrated in 2021.

How Does Fantom (FTM) Work?

Directed acyclic graphs (DAGs) allow the Fantom (FTM) blockchain to run faster by displaying blockchain transaction histories as “hashgraphs” or graphs of blockchain hashes. It’s based on the same principles as Hedera Hashgraph.

One of Fantom’s “leaderless” consensus mechanisms, Lachesis, is another new feature. An asynchronous byzantine fault-tolerant (aBFT) proof of stake (PoS) variation is used. Nodes in Lachesis communicate with each other using peer-to-peer networking and a DAG aBFT consensus mechanism to verify that all commands are handled in the same order.

In subsequent transactions, the same scenario is repeated, culminating in a smaller number of messages that produce consensus. As a result, Lachesis has a more negligible communication overhead and a shorter time to finality than synchronous BFT.

Aside from being Byzantine fault-tolerant (BFT), Lachesis may also obtain consensus in the presence of malevolent behaviour. As a result, the data generated by Lachesis can be quickly put to good use. In contrast to Ethereum and Bitcoin, Fantom (FTM) transactions are cleared within two seconds as there’s no need to wait for block confirmations.

The advantage is that even if a third of the transaction data is bogus, it can still function normally. For developers who don’t have the time or resources to design their networking layer, Lachesis provides a more efficient, scalable, and secure option. Because Lachesis is asynchronous, users can process commands in their own time.

Furthermore, Fantom (FTM) can run on the Ethereum virtual machine, and developers can quickly transfer decentralized apps built on Ethereum to Fantom (FTM). The FTM token is available in ERC-20 and BEP-20 formats, which comply with the Ethereum and Binance Smart Chain token specifications.

Is Fantom (FTM) a Good Investment?

Being the first directed acyclic graph in the world and built on (DAG), Fantom (FTM) is a good investment for developers and consumers. Fantom’s (FTM) popularity is increasing as more developers and users look for an Ethereum alternative.

Fantom offers a wide range of enticing features and services for end-users and developers. Developers can harness significant improvements in usability and functionality, all for a near-zero transaction price of $0.0000001. Consumers can stake Fantom (FTM) tokens to help secure the Fantom network. And they receive FTM in return. Voting is another feature of FTM, and the more tokens you have, the greater your ability to influence critical decisions. Because of this, Fantom (FTM) is poised to use Ethereum’s smart contracts. As a result, it now has additional functions that allow it to check for transaction accuracy and compile data on user actions.