What is Fantom (FTM)? Should I invest in FTM tokens?

• Overview of Fantom (FTM)
• What is Fantom (FTM)?
• Fantom's mechanism of action
• Features of Fantom
• General information about the FTM . token
• What are FTM tokens used for?
• Basic information about the FTM . token
• FTM . Token Allocation
• FTM . token release schedule
• Prestigious place to buy, sell and store FTM tokens today
• What is the future of Fantom project, should I invest in FTM token?
• Advantages of the Fantom . project
• Disadvantages of Project Fantom
• summary

Fantom is also a project that stormed the market in 2021 with an impressive growth rate, reaching over 15,500%/year. If you are still not familiar with the project and the FMT token, please accompany TraderH4 to find out right in the article below!

Overview of Fantom (FTM)

First, we will learn an overview of the project, from the concepts, operating mechanisms, and outstanding features of Fantom. 

What is Fantom (FTM)?

Fantom is also one of the platforms compatible with Ethereum, similar to the platforms Polygon, Near, Avalanche… The only difference is that Fantom creates a new blockchain, allowing Dapps to deploy and operate. above it. This mechanism is somewhat similar to the Cardano platform. 

This allows the workload that needs to be done to be spread across the blockchains. Specifically, instead of just storing all information on one blockchain, causing pressure and limiting scalability, the platform will share hundreds of different blockchains. These satellite blockchains will be interconnected and use a consensus mechanism. 

Fantom's mechanism of action

To learn more about Fantom's mechanism of action. We will learn about Lachesis – consensus algorithm, aBFT – consensus protocol and DAG operating model. 

Lachesis . consensus algorithm

Lachesis is a consensus algorithm specifically for DAG networks. This algorithm is inspired and modified from the proof-of-stake (PoS) mechanism. 

• According to Lachesis algorithm, each validator has its own DAG containing transaction structure and time sequence. Therefore, the validator only needs to follow Fantom's own DAG structure and allows the validator to reach consensus completely independently.
•  The proof-of-stake verification method does not need a leader. All validators can verify transactions without having to match data. This is a very new point because each validator provides different sets of information. 
• Lachesis supports Fantom's Opera mainnet deployment. Uses Ethereum Virtual Machine (EVM) and it is compatible with Ethereum.
• Each Dapp developed on Fantom is separated into an independent blockchain and can be customized according to the needs of each Dapp. In particular, these Dapps also benefit because all blockchains can interact with each other. 

aBFT . consensus protocol

Fantom is a network that uses the PoS (Proof of Stake) mechanism, but has a consensus method called aBFT. The term aBFT means that each node can process information independently. 

• So the network can work even if some other nodes have incorrect information.
• Fantom's aBFT consensus allows transactions to be processed asynchronously. Increased transaction speed and throughput compared to synchronous BFT ledgers like those on the Ethereum and Bitcoin networks. 
• Fantom is its use of its own version of the aBFT system, which it calls Lachesis. This is a form of the aBFT system, using the DAG (instructed rotation graph) structure, instead of the current endless block chain. 

DAG . Technology

Most current blockchains will use an infinitely long structure and are locked together as shown on the left. Fantom again uses the DAG structure. A DAG can have multiple chains of transactions being processed at the same time. This makes Fantom highly compatible with other networks, solving the dilemmas of decentralized networks: Security and scalability.

In a nutshell, asynchronous Byzantine fault tolerance (aBFT) allows the network to achieve honest consensus that works even when only 1/3 of the active nodes are harmful.

Features of Fantom

Fantom is even favored by many as the “Ethereum killer” and is placed higher than both Solana and Cardano. So what is so special about this platform that people appreciate it so much? Here is the detailed answer. 

• Extensibility

As mentioned above, each network on Fantom operates completely independently of each other according to the DAG architecture. So performance is optimized and there are no bottlenecks or overloads. This has actually outperformed Ethereum, the first platform to open “smart contracts”, but encountered the problem of gas fees, expanding as the number of Dapps increased on the same infrastructure. This is similar to making multiple execution requests at the same time, the computer will hang, freeze or very slow. 

The scaling problem has been relatively thoroughly solved by Fantom by allowing multiple blockchains to be allowed to operate in parallel instead of just one infinite chain like the majority. Each blockchain operates completely independently of the other and can have its own custom tokens, tokens, and governance rules. But all of those mechanisms are tied into Lachesis, the aBFT consensus. 

So even though they operate independently, blockchains can interoperate and benefit from the achievements of speed and security technology. Each network is fully customizable for a specific use. Fantom is a network of networks.

• Security

Although initially developed on the Ethereum platform, Fantom still creates its own blockchain using the Proof-of-Stake mechanism. Lachesis, the consensus algorithm for DAG networks, can provide institutional-grade security for distributed networks. Security capabilities have been upgraded more than usual. Besides, Fantom is also a platform that provides absolute "finality". 

This means that transactions can never be reversed as in networks that are final, even if probabilistic. Fantom's consensus mechanism not only ensures security, but can also scale up to hundreds of nodes. 

• Open source

Fantom is an open source network with no licensing required. Therefore, anyone can become a validator node. Fantom's Opera chain has almost no limit of validator nodes. What you need to do is stake a minimum of 3,175,000 FTM into the network to be able to become a validator node. In case you do not have enough of this number, you can still participate in Fantom's security by delegating, at least 1 FTM for a validator node and receive rewards. 

• Fast speed, low cost

Fantom provides extremely fast transaction speeds by limiting decentralization in its consensus mechanism. This is done through Lachesis – an enhanced version of PBFT Practical Byzantine Fault Tolerance).

With Lachesis, Fantom can process transactions in seconds at a very low cost. The Lachesis algorithm allows Fantom to focus more on speed and less on decentralization. This is different from BTC, a project that is more about security and decentralization than speed or scalability.

• Strong support for the DeFi ecosystem

Fantom is also probably one of the few platforms that strongly support the DeFi ecosystem . At one point, Fantom's TLV locked value peaked at over US$12 billion and rose to 3rd place based on TVL (total locked). Not only compatible with Ethereum, Fantom can also be compatible with most of today's leading DeFi applications such as Curve, Yearn Finance, etc.

General information about the FTM . token 

Next we will learn about Fantom's FTM token in detail. 

What are FTM tokens used for?

FTM is Fantom's native token, used for the following purposes: 

• Join staking to become a validator node, verify transactions
• FTM is also a currency to pay for transaction fees in the network
• Join the network management system

Basic information about the FTM . token

• Ticker: FTM
• Blockchain: Ethereum
• Smart Contract: 0x4e15361fd6b4bb609fa63c81a2be19d873717870
• Token standard: ERC-20
• Token type: Utility token
• Total supply: 3,175,000,000 FTM
• Circulating supply: 2,545,006,273 FTM

FTM . Token Allocation

The plan to allocate 3.175 billion tokens is as follows: 

• Seed Sale: 3.15%
• Private Sale: 37.04% 
• Public Sale: 1.57% 
• FTM Project Advisor: 12% 
• Project's development team:7.49%
•  Block Rewards: 32.75% 
• Reserve: 6% 

FTM . token release schedule

Prestigious place to buy, sell and store FTM tokens today

FTM is developed on the Ethereum platform, according to the ERC-20 standard, so you will have quite a few options to store this token. 

• Common types of ETH wallets are: My Crypto, Myetherwallet, Metamask.
• Hot wallets on exchanges: Binance , KuCoin , Gate.io , Huobi …
• Cold wallets: Trezor, Ledger.

Besides, this token has been listed and supported for trading on many exchanges today. Therefore, buying and selling FTM is also very simple. Some typical exchanges such as: Binance, Huobi Global, Kraken, OKX, MEXC... The trading pairs with FTM are also quite diverse: FTM/USDT, FTM/USD, FTM/EUR, FTM/RUB, FTM/BTC, FTM/USDC, FTM/XRP…

What is the future of the Fantom project, should I invest in FTM tokens?

Fantom is a platform using Directed Acrylic Graph (DAG) technology, supporting Dapps to solve problems of transaction speed, scalability, and transaction costs. Those are all tough problems that many platforms in the blockchain space are struggling to find solutions to. In the future, if Fantom attracts a large number of Dapps, it is likely that this platform will grow strongly, ranking right behind Ethereum and Polkadot.

Even so, we cannot advise whether or not to invest in FTM tokens. It is entirely your personal investment decision. Below are the advantages/disadvantages of Fantom that we have compiled, with the aim of assisting you in the analysis and evaluation process. 

Advantages of the Fantom . project

• Fantom has built a trusted blockchain and is moving towards becoming the leading platform for Dapps and NFTs.
• Fantom is a highly secure platform: The nodes participating in Fantom's validation form a global Proof-of-Stake network, without intermediaries. So the possibility of being hacked is extremely small. 
• The Fantom blockchain is highly scalable: Fantom can process thousands of transactions per second thanks to its DAG chain architecture and advanced consensus protocols.
• Fantom has impressive compatibility with Ethereum: Ethereum is the number 1 platform for Dapps today but gas fees, network speed, scalability are becoming major barriers. So this is an opportunity for developers. They can deploy and run Ethereum Dapp on Fantom.
• Can Stake FTM Tokens and Earn Rewards: In addition to trading, trading directly and making profits as a speculator, you can also conduct Stake FTM tokens, authorizing nodes to earn rewards. 
• Fantom (FTM) is still in the early stages of development so it is still undervalued. In the future when the market recovers, MarketCap increases, the value of FTM tokens will also be many times higher. 

Disadvantages of Project Fantom 

Although Fantom (FTM) has some advantages, the project also faces many challenges as follows: 

• Andre Cronje – Fantom's soul-breather left the project.
• Platform coins are losing heat : Last year was a successful year for Altcoins, FTM alone increased more than 155 times. This year, however, even the next boom may not be the same. Layer 1 coins will cool down, gradually reducing their attractiveness. Only truly valuable platforms can find a foothold in today's highly saturated niche. 
• Fierce competition between platforms: Not only is the general cooling down, but Fantom is competing for market share with many other platforms, notably Ethereum with 7 years of experience in the field of Smart Contracts of blockchain. 
• In addition, Fantom is not the only platform that offers all kinds of fast transaction speeds and low costs. Solana (SOL) is one of the out-of-the-box platforms that can process at least 50,000 transactions per second and also charges 1% fees. It seems, DOT, Solana have outperformed Fantom in many aspects such as: cash flow, developers, applications, users...

• Fantom's network is unstable : Fantom is promoted as using the most advanced technology platform. But in reality, that's not exactly the case, Fantom has frequent congestion times, causing the transaction speed to slow down many times, along with significantly increased transaction costs.
• Fantom does not have large funds to invest in : This is probably also a disadvantage of Fantom. Large funds will help the project develop community, better products. Especially the market maker's role, in keeping the price and pushing the price of the token, helps to make the ups and downs more stable, instead of letting the community complete this task. 

summary

Thus, we have finished sharing about the Fantom project as well as the FTM token. Hopefully, through the article, you were able to somewhat grasp the basic information about the Fantom project and make your own decisions to invest in yourself. Every investment decision has potential risks, so you need to consider it carefully. Good luck!

• Revealing the reason why Fantom can hardly increase the price as expected