Things You Need to Know About Fantom Ecosystem (FTM)
Fantom is a Ethereum-compatible platform which has proven to be instrumental towards the growth of Decentralized Applications, or dApps. Fantom has been created in such a manner that it acts as a highly scalable, and decentralized infrastructure for smart contracts and is based on DAGs (Directed Acrylic Graphs). The Fantom Ecosystem was devised in order to address the issues with major blockchains like Bitcoin and Ethereum. Bitcoin still stays as the most prominent cryptocurrency in the market, and can be bought over a Bitcoin Buyer. One of the major issues that were targeted during the development of this technology was the long transaction times. FTM, the coin that is native to the technology is used to compensate the validators of new blocks, and to govern the technology.
Why was Fantom needed?
Fantom was invented while keeping the shortcomings of several major blockchains in mind. The Bitcoin blockchain being the most major one, would take 10-15 minutes to complete a transaction. Although it is very secure, and decentralized, the slow transaction speed would lead to crippled scalability of the network. The developers of the Fantom Ecosystem would keep this in mind, and they came up with a solution, which would allow the network to execute transactions within a few seconds, making the system more scalable, without compromising the security of the network. Fantom utilizes a Proof-of-Stake model, that lacks leaders. Every application that is based on Fantom functions on an independent blockchain, personalized according to the tokenomics and governance requirements. It must be noticed that these blockchains are independent of each other. Therefore, the failure of one system does not bear any ill-effects on the rest. However, all the different systems making up Fantom interact together, as they function discreetly in their own zones, without any mutual interdependence.
How Fantom addresses the “Blockchain Trilemma effectively”
The “Blockchain” Trilemma consists of three major issues, including the issues related to speed, , decentralization, and security with the help of a protocol that permission, and a BFT process, that processes transactions on the network in an asynchronous manner, ultimately delivering decentralization, security and quickness to the whole process. Lachesis, the BFT algorithm delivers higher efficiency than both the Nakamoto, and Classical models. Lachesis enables developers to formulate P2P applications, which eliminates the need of developing a separate networking layer for every app. Moreover, it is to be noted that Lachesis features Byzantine Fault-Tolerance, which ensures that consensus is reached even in the presence of faulty nodes. Lachesis confirms transactions in a matter of couple seconds, which also eliminates the need of confirming blocks.
Use cases of FTM
FTM, which is the cryptocurrency that is native to this network, finds usage in several situations. Let us understand how they can be utilized. FTM finds high usability in exchanging money. Owing to the incredible transaction speeds of the Fantom Infrastructure, more people are reverting to FTM to exchange money. In addition to the lightning fast-finality of the network, the low transaction fees, and the incredible throughput of the network renders the FTM as a good choice for exchanging money. The governance of this network is conducted on-chain, and every improvement, or modification suggested by a stakeholder requires FTM, for their suggestions and votes to be considered. As the Fantom ecosystem is truly permissionless, all decisions are made on the basis of on-chain governance, which mandates the participation of FTM in voting. FTM is also used for staking, in order to ensure the security of the network. Stakeholders receive rewards in return of staking FTM, without the need of establishing a designated workstation with special applications, or hardware. FTM is also used to pay the fees for executing smart contracts over the network, which ensures the avoidance of spams, or clogging of the ledger, which often causes speed issues.
One can buy FTM over major crypto exchange websites, such as Binance, or KuCoin. It can be stated that the Fantom ecosystem was established in order to deal with the Blockchain Trilemma, and it does so aptly, by the execution of transactions at a high speed, and makes the service profitable for stakeholders by providing rewards in return of staking FTM, without the establishment of a designated mining setup. The Lachesis algorithm, which also utilises aBFT procedures enable the network to carry out transactions at such a high speed!