Fantom is a DAG-network. It includes parallel chains of information, and for scalability, methods that can increase the figure in question are used. The Fantom blockchain is a high-performance IT machine that is capable of creating the necessary conditions for smart contracts, or rather their execution.
The Fantom system uses a native FTM coin for its existence. It is an ERC-20 coin since the token in question was placed on the Ethereum blockchain. When Main Net is fully deployed, FTMs will be moved to their own blockchain. Fantom (FTM) has long been tradable. The Binance exchange added it to its quotations back in the summer of 2019.
The main purpose of FANTOM is to allow various services to form one overall, interconnected system. It is a “smart” network that offers scalability for high-speed data transmission. At first, IoT devices will be used in large cities, but the more the network develops, the faster the horizons of the project will expand.
It is true that smart cities are only one of the areas in which FANTOM works. In addition, the platform works to form a smart home, where all important information is stored on smart contracts. Moreover, different areas of human activity can become “smart”:
- Use of community services;
- Provision of health care;
- Obtaining education;
- Traffic management;
- Resource management and environmental data.
Any of the areas described are practically ready for blockchain solutions to be implemented, speeding up and facilitating the transfer of information. Fantom FTM is based on the directed acyclic graph (DAG) model. Interestingly, FTM is the first crypto project to incorporate DAG directly into its own ecosystem.
OPERA and Lachesis are used to provide consensus. It is because of the use of OPERA, where the nodes are hosted, that the network is so fast and efficient. And thanks to technical solutions, it will become even faster when the number of nodes increases. This is especially convenient against the background of the fact that in the case of other systems, an increasing number of nodes makes the system slower. This makes Fantom very handy in industries where scalability is important.
Fantom cryptocurrency: team and history
At first, the Fantom was planned to be used in South Korea, and that was the country that gathered the most partners. But now, Fantom is actively used all over the world, and the project has become international.
Today, the project leaders are Michael Kong, Quan Nguyen, who works as technical director, and other developers and managers.
Funds to launch the project were raised in several stages.
| Funding format | Distributions | Cost of 1 FTM in dollars | How much was raised (dollars) |
| Seed-investors | 3,15% | 0,016 | 1,6 million |
| First private sale | 25,35% | 0,031 | 24,8 million |
| Second private sale | 11,69% | 0,035 | 12,9 million |
| ICO | 1,57% | 0,04 | ~2 million |
| Total: | 41,76% | ~39,65 million |
The remaining number of coins was distributed among the project team (7.49%), consultants (12%), and reserves (6%). 32.75% were left for rewards for block creators.
Fantom FTM cryptocurrency: features and technical implementation
Fantom has several key features that make it stand out among thousands of other developments:
- Originality. DAG is not new, but Fantom was the first cryptocurrency to use DAG in decentralized applications.
- High scalability rates. Thanks to this feature, the blockchain can process a huge number of transactions. And the more nodes there are, the faster the procedure will go.
- Relevance. IoT solutions are developing very quickly and can shoot out at any moment.
- Simplicity. A simple Scala language is used for programming, making it easy to work with Fantom.
Principle of operation
The Fantom platform uses the decentralized Opera network. The advantage of Opera is that it allows a large number of transactions to be processed, increasing the scale of the blockchain. The chain includes three layers.
- The first layer contains the core for processing operations.
- The second layer contains the storage to support smart contracts and the rest of the components that are important for the functioning of the system.
- The third layer contains the applications that enable DApps to function.
These layers are basic, and they are based on the acyclic graph DAG. At the storage layer, transactions of participants who participate specifically in the data transfer are allowed. Transactions are performed because a request is submitted from the storage to the protocol that curates the transactions. Information about the participants in the operation is collected using a protocol that supervises historical data. Reputation points, smart contracts, and rewards are being considered. Through the reputation protocol, each participant’s points are updated. Next, the rewards protocol comes out so that each party receives a profit that corresponds to their reputation points.
The entire infrastructure kicks in thanks to aBFT’s internal engine, Lachesis. Lachesis is fast, secure, and scalable, unlike other methods of obtaining the appropriate level of consensus.
Transaction speed
One of the main advantages of Fantom is considered to be its high throughput. A transaction is considered completed within a second, so it can’t be undone or changed. Even compared to Polkadot, this is a lot – on that network, the speed is 2 to 5 seconds.
The throughput of the network is really high, but the opinion of many users is that this effect was achieved only at the expense of increased decentralization. And this is a vulnerable point of the system. After all, only 47 validators were active at the end of 2021.
Fantom coin: what is the FTM cryptocurrency and Opera Fantom
The Fantom Project has launched the Opera main net. It provides smart contracts and is capable of working with the Ethereum blockchain. FTM is a cryptocurrency, a native-type service coin. It maintains the functioning and security of the network through a staking procedure. And coins can be issued not only in Opera but also in ERC-20 and BEP2 formats.
Characteristics and price of Fantom cryptocurrency
The Fantom token has a limited total supply – the maximum number of coins is 3.175 billion units. Additional tokens cannot be generated. As of August 2022, 80% of the coins are in circulation, and the rest are in reserve to pay rewards.
| Parameters | Results |
| Place in CoinMarketCap rating | №63 |
| Circulating supply | 2,55 billion coins |
| Maximum price | $3,30 (16.01 2021 г) |
| Minimum price of the Fantom cryptocurrency | $0,001935 (13.03 2020 г.) |
The price of the Fantom cryptocurrency is $0.27 today.
By the way, holders have an opportunity to vote on how much to pay to validators. If the current conditions aren’t changed, there is every reason to believe that all coins will be in circulation by 2024.
What affects the rate of the cryptocurrency
Fantom tokens, like other cryptocurrencies, are highly volatile. But current price fluctuations can be explained by a variety of factors:
- How active is the popularization of the coin – publications in the media, social networks from media personalities.
- Bitcoin’s value fluctuations because it is the flagship of the cryptocurrency world.
- The launch of new DeFi projects and programs that allow passive income, and decentralized applications based on Fantom. The expansion of the Fantom ecosystem also has a positive effect on the exchange rate.
- Emergence in the new exchanges, technological developments, and updated protocols.
In addition, the general mood of the market and similar projects from competitors have an impact.
What is backing Fantom crypto?
Fantom refers to highly volatile assets that aren’t backed by anything. But still, there are some regulators of the Fantom cryptocurrency rate. In particular, limited issuance. That way, coins won’t depreciate. Furthermore, a relatively stable rate is provided by the support of Fantom Foundation, large cryptocurrency exchanges, and investors who are interested in the technology.
How the Fantom cryptocurrency is used
FTM tokens are a full-fledged working tool for the network, which allows the project to function in the way it is wanted.
| Purpose | Explanation |
| Ensures network security | Opera operates using Proof-of-Stake (PoS) and aBFT. For the network to work adequately, stakers and validators must block cryptocurrency in their account. In return, a person will receive tokens, a reward for the work done. |
| Used as a payment instrument | Coins can be used to make transfers. And it is profitable not only for large companies but also for private holders. The network has a high throughput, and the commission fee is approximately $0.0000001. |
| Participates in network management | The network can be managed based on solutions that most validators and stakers agree with. Voting takes place within the network and is completely transparent. However, the number of tokens is still important because one vote is one FTM token. |
| Tokens are used for network fees | Paying minimum fees is mandatory to protect the network from spam transactions. If this isn’t done, the ledger will be filled with junk data, which reduces the overall productivity of the system. Examples of network fees are transaction fees, etc. Although the fees are small, they make breaking into the network unnecessarily more expensive than protecting it. |
How to get Fantom cryptocurrency today
Today you can buy Fantom or earn these tokens. Mining in the classical sense isn’t possible in this case, but there is staking.
Fantom ftm mining: staking and working as a validator
Fantom ftm mining isn’t possible in the classical sense of the process in question. But users can take part in staking. Simply block the currency you already have in your account and get rewarded for it. You can also become a validator by running your own consensus node. Another option is to delegate coins.
For example, let’s look at how you can become a validator.
- Make sure you have at least one million FTMs in your account. This is the minimum filling of the account.
- In return, receive a reward of 15% of the amount invested (per year). In addition, validators receive rewards from delegates.
- To get started, you need to connect to Amazon Web Services’ commercial, public cloud.
Next, the holders communicate with the validator, setting the period during which these funds will be blocked. The minimum period is 14 days, and the maximum is a year. The benefit depends on the duration of the blocking. Blockless stakes are available, but the percentage is much less – about 4% per year. The minimum threshold for staking is 1 FTM.
Fantom cryptocurrency wallet
FTM tokens can be stored on any of the cryptocurrency wallets that support the ERC-20 standard. It doesn’t really matter what kind of wallets they are. Coins can be stored in hardware, mobile, or desktop wallets. Tokens can also be stored on web wallets. It is allowed to use multi-platform wallets that support additional features such as high-speed transactions, etc. The main thing is that the Fantom wallet should support the necessary functions and be secure.
Sometimes choosing a wallet is a very difficult task. Firstly, you need to know the features of all types of wallets and choose the one that meets your needs. Secondly, you need to choose just one service among many solutions, and to do this, get acquainted with the project, find reviews, and do some test operations using a small amount of coins.
Often not wanting to understand the intricacies of software (desktop and mobile) wallets, users stop at web solutions because funds are available immediately from the browser. Also, the easy-to-understand interface more often inclines to web services. An example of such an online service is https://fantomwallet.network/.
An intuitive interface, good user ratings, and reliable protection of funds – are three criteria that characterize the positive side of this service.
Making money with DeFi
The ecosystem is designed so that users can profit from several tools at once:
- FMint. You can mine fUSD with Fantom. When the coins are mined, make a reverse exchange. To use this way of earning, you need fWallet.
- fLend. In this case, holders are required to provide FTM/fUSD coins to put them into liquidity pools. In return, they will receive %.
In addition, you can use fSwap. Earnings are quite stable, and the fact that you can earn directly from your wallet is convenient.
Fantom: prediction of investment profitability
The investment attractiveness of Fantom is high, partially because the price of Fantom isn’t even close to its maximum yet. There is also no reason to believe that the coin’s price will fall seriously in the near future. At least in the long term, investing in Fantom is profitable.
Trading
Traders have access to spot trading on more than 30 platforms. It is also possible to take part in margin trades on major exchanges such as FTX, Binance, KuCoin, OKEx, and others.
