What is Fantom? Everything you need to know about FTM (2024)

Fantom facts

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What is Fantom?

Fantom (FTM) is a blockchain platform that provides infrastructure for decentralized applications (dApps) and smart contracts. The platform is built on a unique consensus mechanism that enables high transaction speeds without compromising decentralization or security. Additionally, Fantom is modular in design, allowing for various applications, including financial services, supply chain management, gaming, and more. With a strong team of developers, partners, and a growing user community, Fantom is considered a promising blockchain project.

How does Fantom work?

In technical terms, Fantom operates based on a unique consensus mechanism called Lachesis, utilizing an asynchronous Byzantine fault-tolerant (aBFT) approach. This mechanism can process up to 300,000 transactions per second while securing the network against attacks and errors. Fantom also employs a Proof of Stake (PoS) mechanism where validators must stake FTM coins as collateral to participate in the validation process.

When a transaction is submitted to the network, it is broadcast to all nodes in the network. Subsequently, the transaction is validated by a random group of validator nodes selected by the network. These validator nodes vote on the validity of the transaction and add it to a block. The block is then added to the blockchain, and the transaction is executed.

Fantom supports various programming languages, allowing developers to import and use smart contracts from different platforms. This makes Fantom interoperable with other blockchain platforms and keeps dApp development straightforward.

The FTM token

The FTM token serves as the native cryptocurrency on the platform. FTM tokens are issued as rewards to those contributing to the network, including validators, developers, and community members. These rewards are funded by a portion of the transaction fees paid in FTM.

Validators stake FTM tokens as collateral to participate in the validation process, enhancing network security and aligning validators' interests with the correct operation of the network. Additionally, Fantom has a treasury funded by a share of transaction fees and other platform revenues. This treasury is used to finance future network development and support new initiatives that can boost FTM's growth.

The Technology Behind FTM

The technology behind FTM is designed to offer high transaction speed while maintaining security and scalability. The platform was developed using various technologies, including:

• The Lachesis consensus mechanism: This allows processing up to 300,000 transactions per second, making it one of the fastest blockchain platforms on the market. It uses an asynchronous Byzantine fault-tolerant (aBFT) approach to enhance network security and minimize the potential for attacks.
• Modular architecture: Fantom employs a modular architecture, meaning different sets of components can collaborate to perform tasks.
• Smart contracts using Solidity as the programming language: This enables developers to easily import and use smart contracts from other platforms.
• Storage: The platform uses an optimized database solution to efficiently manage data and transactions.
• Interoperability: Fantom supports multiple programming languages and offers support for bridging to other blockchain platforms to promote and facilitate interoperability.
• Proof of Stake (PoS) consensus: This means validators can stake FTM tokens to participate in the validation process and receive rewards for their contributions to network security.

The Fantom ecosystem

The Fantom ecosystem consists of various components, including the development team, the community, applications, validators, partners, and the FTM token.

• The development team is responsible for platform development.
• Developers build various applications on Fantom, while the community contributes to its growth and adoption.
• Validators stake FTM tokens to enhance network security.
• Partnerships are formed to promote interoperability and develop new applications.
• The FTM token is used for transaction fees, rewarding validators, and as a means of exchange.

Together, these components work towards creating an efficient, decentralized, scalable, and interoperable blockchain platform.

Benefits of Fantom

Fantom (FTM) offers several unique advantages, including:

• High transaction speed thanks to the Lachesis consensus mechanism.
• Significant scalability.
• Interoperability with other platforms.
• Energy efficiency.
• Modular architecture.

Drawbacks of Fantom

Like any blockchain platform, Fantom has some drawbacks that investors should consider:

• It's still relatively small and less known compared to its competitors.
• Centralized validation process.
• Risk of bugs and security issues.

Who is the founder of Fantom?

The founders of Fantom are Dr. Ahn Byung Ik, a computer scientist from South Korea, and advisor Matthew Hur. They conceived the idea behind Fantom as a solution to the scalability issues of second-generation blockchain networks like Ethereum.

Price forecasts

In 2026 experts expect a minimal price of €1.42 and a minimal price of €4.69 in 2031.

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Market information

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A video explanation of Fantom

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