What is Fantom (FTM)?Fantom is a Layer-1 cryptocurrency project created in 2018 with the goal of becoming a faster, cheaper, and more interoperable platform. It is compatible with the Ethereum Virtual Machine (EVM), the underlying network on which Ethereum projects are built. Fantom's native token FTM is not only used for transactions between users, but also has multiple uses and frameworks.
Fantom’s white paper was released on October 25, 2018, and was launched by the Fantom Foundation. The development team includes computer scientists and developers Jiho Park, Sang-Min Choi, Quan Nguyen and Andre Cronje, the latter of whom is the founder of Yearn Finance (YFI) people. Fantom's goal is to build a faster and more secure blockchain through the Directed Acyclic Graph (DAG) and Asynchronous Byzantine Fault Tolerance (aBFT) algorithm framework.
Since its creation, Fantom has gradually become one of the major cryptocurrency projects, especially in 2020 and 2021, with the rise of Layer-1 solutions such as Solana, Terra, and Cardano, Fantom has rapidly gained popularity due to its low cost and high scalability. Get attention. By January 2022, Fantom has surpassed BNB Smart Chain to become the third largest DeFi blockchain in the crypto field.
How does Fantom work?
Fantom Network, often referred to as Fantom Opera, runs under a Proof-of-Stake (PoS) consensus layer. Holders of FTM tokens can use it to operate nodes, verify transactions and earn rewards. The use of PoS makes Fantom a more optimized network, especially suitable for the development of decentralized applications (dApps), such as Curve, Sushi and other large decentralized exchanges (DEX) and lending projects.
DAG: The core pillar of Fantom Opera Fantom's DAG structure helps improve the efficiency of the network. DAG can be viewed as an updated version of the blockchain concept, which consists of multiple knots and vertical chains, offering significant advantages over the traditional linear blockchain model. Each node represents a specific transaction that is being processed simultaneously in its blockchain, allowing the network to operate in an asynchronous manner so that new operations and tasks can start and end at any time, allowing for fast confirmation of transactions, typically in less than a second. Completed within the clock.
Asynchronous Byzantine Fault Tolerance (aBFT)
Fantom's consensus mechanism is called Lachesis, and it is an important part of the entire system. Lachesis is characterized by being asynchronous, leaderless, and able to tolerate up to one-third of malicious nodes. The workflow is as follows:
Start the synchronization process of the node.
Execute the random selection algorithm to generate the next block.
Communicate between randomly selected nodes and synchronize the network through the DAG mechanism.
Verify the transaction information of the block and approve the use of new blocks through aBFT consensus.
What are FTM tokens? FTM is the native token of the Fantom network and supports the ERC-20 (Ethereum) and BEP-20 (BNB chain) standards. The main role of FTM in the network includes paying fees to verify transactions, participating in on-chain governance, and voting on project changes and updates.
FTM Token Economics
FTM's token supply is limited, with a total supply of 3.175 billion and a circulating supply of 2.54 billion. The distribution structure of tokens is as follows:
40% is allocated to investors in public and private offerings.
15% is allocated to consultants, with a three-month lock-in period.
10% is allocated to the founder and will be released two years after the online launch.
3.6% is earmarked for allocation to the protocol’s strategic reserve.
31.4% is used to reward nodes in transaction commissions and is expected to be distributed by the end of 2024.
Summarize
As a cryptocurrency project with great potential, Fantom (FTM) is bringing new possibilities to the decentralized finance (DeFi) field through its unique technical architecture and token economics. As the Fantom network continues to expand and develop, the value and application scenarios of FTM tokens are also expected to further increase. Whether you are an investor or a developer, Fantom offers a wealth of opportunities and challenges that are worthy of your attention.