The Fantom ecosystem is a new crypto network that is becoming increasingly popular. Fantom crypto was created to address some of the issues that first and second-generation blockchains, such as Ethereum and Bitcoin, faced.

Here is the truth: the creators of early networks focused on security but later found that there were issues with scalability, speed, and the cost of transactions. In response to these issues, several crypto networks emerged. Among them was Fantom.

What Is Fantom?

Fantom is a smart contract network for virtual assets and decentralized apps (dApps). It is permissionless, open-source, and decentralized. The network aims to offer greater scalability and reduced costs, as well as faster transaction speeds.

People can construct and operate their own autonomous networks rather than relying entirely on Fantom’s primary consensus layer, which is a distinctive characteristic of the Fantom crypto ecosystem.

The platform’s native token is FTM.

How Does It Work?

Fantom employs an Asynchronous Byzantine Fault Tolerance (aBFT) consensus protocol, which allows it to obtain a higher throughput at lower costs while sustaining security and scalability.

Nodes will process transactions asynchronously without the need for a defined leader in Fantom’s aBFT consensus mechanism.

The Lachesis Protocol provides one-third of the fault tolerance, which means that 67 percent of nodes must verify a transaction before it may be completed. Its one-second closure differs from the block verification period of proof-of-work blockchains like Ethereum, allowing Fantom to function more quickly and with greater scalability.

Lachesis serves as a foundation layer upon which further layers can be applied. The first layer, Opera, is a PoS chain that is compatible with EVM and verifies transactions using the Lachesis validation set.

Yearn Finance, SushiSwap, and Curve are examples of Fantom DeFi apps. These dApps have extended from the Ethereum network to Fantom.

Its FTM coin, which has a total supply of 3.175 billion FTM, can be used for fees, payments, staking, and governance payments. Moreover, you could either stake FTM for 4 percent APY or opt for Fantom’s Fluid Rewards to lock in your FTM for a maximum of 12 percent APY.

Decentralized Finance (DeFi)

Due to its focus on DeFi applications, Fantom has positioned itself as a genuine player in the layer-one blockchain arena, despite the stiff competition. Yearn Finance creator and Fantom technical advisor Andre Cronje deserves special credit for this.

Cronje has played a key role in supporting and growing Fantom’s multi-chain developments and assisting with the introduction of its Ethereum bridging.

Fantom’s network is well-developed, with dApps primarily focused on DeFi apps. According to DefiLlama, the network’s TVL is already $9 billion, placing it ahead of other similar blockchains such as Polygon and Solana, which have a bigger market cap.

Directed Acyclic Graph (DAG) 

Fantom does not use traditional block-based chains as other crypto networks do. Blockchains such as Ethereum and Bitcoin rely on generating and confirming data blocks for their infrastructures and consensus mechanisms.

Instead, Fantom employs a unique system based on the Directed Acyclic Graph (DAG). The main rationale for this decision is to solve scalability concerns.

Response to Cyberattacks 

Fantom’s Lachesis protocols work to keep the network secure. It does this in three ways: transaction flooding, Sybil attack, and the parasite chain attack.

  1. Transaction Flooding 

Every transaction that occurs on the network incurs a small transaction fee. As a result, hostile attackers will be unable to overwhelm the system with transactions.

  1. Sybil Attack

To detect and penalize malicious nodes, the Opera blockchain employs a process comparable to delegated proof of stake (DPoS). Furthermore, an individual node can be constructed on a single computer.

  1. Parasite Chain Attack

The primary blockchain is in charge of verifying and confirming event blocks. Every block that isn’t linked to the primary chain will be instantly removed, preventing potential cyberattacks.

Hoping to Join the Fantom Network? 

If you are interested in becoming a part of this progressive crypto network, why not join the Hector Finance Project? Hector Finance is a DeFi project that forms a part of the Fantom ecosystem.

To become a part of this upcoming project or find out how to buy TOR or HEC tokens, you can find several helpful resources on our website!

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