Key Takeaways
- Fantom (FTM) is a high-speed blockchain platform for developers to build decentralized applications (dApps) and smart contracts.
- Fantom tackles the challenge of balancing scalability, security, and decentralization, allowing faster transactions without compromising the other two aspects.
- The project aspires to be a powerful, secure, and user-friendly platform for developers to create next-generation dApps and for users to interact with them seamlessly.
What Is Fantom (FTM)?
Fantom (FTM) is a smart contract platform launched in 2018 that uses Directed Acyclic Graph (DAG) technology to address scalability limitations in traditional blockchains. The project strives to be a high-performance, secure, and scalable blockchain platform that advances innovation in the DeFi and dApp space.
How Does Fantom (FTM) Work?
Fantom is a blockchain platform designed to address scalability issues plaguing other blockchains, allowing faster transactions and lower fees. Here’s a breakdown of how the project works:
Underlying Technology
Directed Acyclic Graph (DAG)
Fantom utilizes a DAG structure alongside a Byzantine Fault Tolerance (BFT) consensus mechanism. This structure allows for parallel transaction processing, significantly improving scalability compared to traditional blockchains.
Lachesis Consensus Mechanism
This custom mechanism ensures agreement on the network’s state without requiring all validators to communicate directly with each other. It achieves fast transaction finality while maintaining security.
EVM Compatibility
Fantom is compatible with the Ethereum Virtual Machine (EVM), allowing developers to port existing smart contracts to Fantom with minimal modifications.
Fantom (FTM) Token And Tokenomics
Tokenomics
The FTM token is Fantom’s native cryptocurrency. It is used for:
- Transaction Fees
- Staking
- Governance
Token Details
Total Supply: 3,175,000,000 FTM
Circulating Supply: 2,803,634,835 FTM
Current Price: $1.24
Market Capitalization: $3,476,706,023
This information is current as of December 5th, 2024, and the token’s price, market value, and available supply may fluctuate.
Distribution
- Block Rewards (32.8%)
- Private Sale I (25.4%)
- Private Sale II (11.7%)
- Public Sale (1.6%)
- Seed Sale (3.2%)
- Founders & Team (7.5%)
- Advisors (12%)
- Strategic Reserve (6%)
Where Can I Buy Fantom (FTM)?
Binance – Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.
Bybit – This exchange is known for its derivatives and margin trading features, but you can also use the platform for spot trading.
KuCoin – KuCoin is a smaller exchange known for its competitive fees and support for many cryptocurrencies.
Is Fantom (FTM) A Good Investment?
Pros
- Speedy Transactions and Low Fees – Fantom boasts impressive transaction speeds, processing thousands per second with near-instant finality. Additionally, fees are a fraction of a cent, making it attractive for users compared to congested blockchains.
- Ethereum Virtual Machine (EVM) Compatibility – A major advantage is its compatibility with Ethereum Virtual Machine (EVM). This allows developers to easily port existing Ethereum-based applications to the Fantom network, fostering a more robust ecosystem.
- 30-Year Runway – The Fantom Foundation claims to have secured enough funds to support operations for the next 30 years without needing to sell any additional FTM tokens.
Cons
- Lower Market Cap – Compared to established players like BNB Chain and Solana, Fantom has a smaller market capitalization.
- Competition – The crypto space constantly evolves, and Ethereum is undergoing upgrades to address scalability issues. As Ethereum 2.0 improves, Fantom’s role as an alternative might become less prominent.
- Limited Use Cases – While Fantom holds promise for the Internet of Things (IoT) and smart city applications, these areas are still under development, limiting the token’s real-world use cases.
Fantom Is Rebranding To SONIC (S)
The Fantom Foundation has recently revealed the launch details of its new Layer-1 blockchain, Sonic Network. The transition will see current FTM token holders migrate to the new Sonic token, denoted as S, at a 1:1 ratio. This migration places Sonic Network as the upgraded version of Fantom, which is also called Fantom 2.0.
Final Thoughts
Whether Fantom (FTM) is a good investment depends on your risk tolerance and goals. Remember, this guide only provides a starting point for your research. Always conduct your due diligence before making any investment decisions.
