What Is Fantom | ZebPay
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Ethereum is currently one of the most popular blockchains, mainly for smart contracts and dapps. However, the network is plagued by its own problems. Ethereum is known for its high gas fees, especially when the network is congested. In this case, the payment costs themselves may exceed the value of the transaction. There are many alternatives to Ethereum such as BNB chain and Solana. But Fantom, another Layer-1 blockchain, is quickly gaining popularity. So what is it and why is Fantom wanted?
What is FTM?
Fantom is a permissionless and decentralized blockchain for smart contracts. Like other alternatives to Ethereum, it tries to provide decentralized applications and digital asset functionality on a more efficient and cost-effective network.
The network is unique in that it is able to use separate blockchains instead of building all applications on the main Fantom blockchain. This allows developers to enjoy a modular independent blockchain while maintaining the security and speed of the main Fantom blockchain.
How does Fantom work?
Fantom has two main components – the reputation ‘Opera’ and its network of blockchains. With these two features, Fantom hopes to solve blockchain’s “trilemma,” or the trade-off between security, decentralization, and scalability.
What is Phantom Network?
The Fantom network consists of the main blockchain, independent blockchains used by developers, and their shared features. The entire network is secured by a Proof of Stake consensus mechanism called “Lachesis”.
Lachesis works with a “Byzantine Fault Tolerant” mechanism. This ensures that the network does not need all nodes to agree in order to function. Up to a third of the nodes can fail to respond or respond with faulty data without disrupting operations. It also enables the network to operate asynchronously, which means that data can be processed at different times on different nodes.
Independent nodes can communicate with each other to share information about transactions, but they do not need to finalize blocks. This results in a system that can process transactions in seconds without long confirmation times.
What is Phantom Opera
As mentioned above, Opera is a Fantom network. It is a deployment platform for dApps on the web and provides an open environment for developers. Opera is also integrated into the Ethereum virtual machine and supports all of Ethereum’s smart contract features.
The team is also working on the “Fantom virtual machine”. This is a software development kit that allows developers to natively create applications for Fantom. With this, they want to pull developers away from the Ethereum network to their own platform.
Each independent blockchain is modular, with developers controlling features such as tokenomics and application management. However, they still have access to the same Lachesis system, which ensures that all blockchains on the network are fast and secure.
How to bet Fantom?
Fantom’s original token is known as FTM. Users can bet on them to earn lucrative rewards. Start by getting 1 FTM. FTM can be acquired as an ERC-20, BEP-2 or even native token.
Transferring digital assets to a Fantom-enabled crypto wallet converts them into FTM coins on the Opera network. If you also want to use the node online, you need to stake at least 3,125,000 FTM tokens. At the current price of $0.18, this is $562,500, which is beyond the reach of most individuals.
The staking rewards also depend on how long you commit to locking your coins. Wagering results in a 4 percent APY, while locking it in for a year can give you a return of up to 12 percent.
What is the Fantom coin used for?
- Administration – holders of FTM tokens can also participate in the administration of the network. This means voting on key issues such as online payments, software updates and stake rewards.
- Staking – As mentioned above, you can stake your Tokens to secure the network and earn more tokens. This can be a lucrative side investment for users, especially if you have a lot of chips.
- Payments – The Fantom Network must pay its contributors and confirmers to continue operating. Doing business on the blockchain also requires paying these fees in FTM tokens.
- Payments – Like other cryptos, FTM tokens can also be used for payments and transactions. They can be transferred from one wallet to another just like Bitcoin.
Phantom Coin Future
Thanks to the creation of the Fantom virtual machine, Fantom can truly separate itself from Ethereum and stand on its own two feet. Independent development kits are a huge bonus for any platform because they simplify and streamline building apps on it.
While alternative L1 blockchains like Solana, Fantom, and BNB are creating more features for themselves, Ethereum is also evolving. It has just completed the long awaited “Merge” and many more updates are coming. Phantom’s long-term survival also depends on its ability to add features and grow faster than Ethereum.
Read more: What is Ethereum Merge
Fantom aims to bring the “internet of blockchains” even closer. Its unique solutions and implementation can establish it as a key player in the future of the crypto industry. However, it must adapt to the market. Other major L1 blockchains have a much higher user base and market cap than Fantom. Fantom needs to edge out these competitors to maintain its relevance in the Ethereum-dominated environment.
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Is Fantom a good crypto?
Fantom is a technically sound crypto project. It implements advanced security features that enable fast transactions and verification on the platform. This solves one of Ethereum’s worst congestion problems and shows that it is a good crypto project.
Does Fantom Crypto have a future?
Fantom certainly has a future as long as the innovations continue. This will ensure its importance in the crypto market for years to come.
The Phantom Ecosystem
The Fantom ecosystem consists of independent blockchains decoupled from Fantom, the main network from Opera, and the Lachesis consensus mechanism. All these features also work with FTM’s crypto token.