What Is Fantom Blockchain?
Fantom stands out as an innovator in blockchain technology, offering a unique structure based on a Directed Acyclic Graph (DAG). This enhances scalability and data processing speed, overcoming challenges typical in traditional blockchains. As a Layer 1 blockchain, Fantom is notable for its compatibility with Ethereum, facilitating easy migration of applications and assets. Furthermore, Fantom focuses on sustainability and low energy consumption, making the blockchain more eco-friendly and accessible. The mainnet of Fantom is called Opera.
Key Technologies of Fantom
One of the objectives of the Fantom blockchain is to provide a better solution than Ethereum - faster, more energy-efficient, and cheaper. Let’s take a look at the key solutions in Fantom and how they resonate with improvements compared to Ethereum.
Lachesis aBFT
Fantom’s Lachesis aBFT consensus algorithm is a leaderless, asynchronous system, making it highly decentralized and efficient. It achieves Byzantine fault tolerance, functioning effectively even with up to a third of nodes being faulty or malicious. Lachesis significantly enhances transaction speeds with its unique structure, where validators process transactions independently, using directed acyclic graphs (DAGs). This results in rapid transaction finality, often within 1-2 seconds. Additionally, the use of epochs in the network structure optimizes storage and retrieval, further improving the system’s efficiency. This innovative consensus mechanism has solidified Fantom’s position in the blockchain sector.
Time to Finality Fantom Blockchain. Source: docs.fantom.foundation
Fantom Gas Monetization
Fantom’s Gas Monetization program aims to provide a sustainable income for high-quality dApps and support the network’s infrastructure. Launched to retain talented creators and foster a thriving ecosystem, the program offers dApps a 15% share of the gas fees they generate. This initiative is similar to the ad-revenue model in traditional web platforms, rewarding dApp creators for the traffic they bring to the platform. To be eligible, a dApp must complete at least 125,000 transactions and be live on Fantom for at least three months. Furthermore, the program has decreased the burn rate of FTM from 20% to 5%, ensuring that gas fees paid to validators remain unchanged. Additionally, the 15% share of gas fees from transactions not stemming from participating dApps is distributed as a quarterly bonus to the top twelve earning projects, divided into four tiers based on their earnings.
Fantom Opera vs Fantom Sonic
Fantom Sonic is a new development from Fantom - a next-generation blockchain capable of processing over 2,000 transactions per second (TPS) with an average finality of one second. While it’s challenging to determine how much better it will be compared to the existing mainnet, Opera, as it is still under testing and development, the goals are quite ambitious. We can only observe and wait in anticipation for the release of Sonic onto the mainnet.
FTM: Fantom’s Native Token
Let’s take a closer look at the Fantom token and learn about its features.
Fantom Unique Addresses Chart. Source: ftmscan.com
Tokenomics of FTM
Fantom operates on a well-thought-out economic model aimed at the development and self-financing of key network nodes. The commission paid for each transaction is redistributed as follows:
- 5% is burned
- 10% goes to the Ecosystem Vault
- 15% is directed to the Gas Monetization program
- 70% goes to validators
Uses of FTM
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Transaction Fees: To interact with the Fantom Blockchain mainnet, you will need FTM tokens in your wallet. These tokens are required for transaction fees and executing smart contracts. It’s not necessary to stock up on tokens in advance; you can always purchase Fantom using a credit card directly within your wallet by following a few simple steps.
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Staking: Fantom operates on Proof of Stake technology, which requires staking to maintain the blockchain’s security and functionality. This role, taken on by users who stake their FTM, is not only crucial but also potentially profitable. By staking your capital, you’ll earn passive income that you can use as you see fit. Furthermore, it’s very easy and can be done in just a few clicks directly within the app.
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Governance: It doesn’t matter how many FTM tokens you have staked – you can still participate in votes related to the project’s future development and plans. Of course, the more FTM tokens you have, the more votes you receive for participation. However, every vote is important, and it may be your vote that becomes decisive in the next vote.
