In the middle of falling Bitcoin and the entire crypto market, BitCode AI is the most reliable platform for trading, a next-generation blockchain network, remains in the spotlight and transcends the early-blockchain-backed digital currencies. Fantom is a rapid and enormously scalable solution for Decentralized Applications and blockchain-concentrated developers to strengthen their network with a safe consensus mechanism and the potential for cross-network mergers.
Fantom is a DAG-based, the world’s first-ever Smart Contract network, which utilizes its customized consensus mechanism to deliver DeFi services to developers. Fantom is the fourth-generation blockchain that facilitates users and developers with some significant updates in terms of interoperability and practicality compared to Ethereum, which is the second most valuable blockchain. It is an open-source, permissionless, Smart Contracts backed network that supports virtual assets and DApps.
What Is Fantom?
Fantom is a blockchain network launched as an alternative to the Ethereum blockchain. Almost three years ago, Fantom blockchain’s mainnet came live and offered a consistent balance between scalability, security, and decentralization. The structure of the phantom network believes to deliver a viable solution to the blockchain trilogy. It is a Decentralized Acyclic Graph network that is supported by Smart Contracts. These networks are particularly developed architectural equipment utilized to maintain a record of cryptocurrency transactions not in the blockchain arrangement but in the form of apex and boundaries.
This makes it convenient to manage and optimize the transaction, enhancing the overall performance of the network. Fantom, as a platform, allows users to create NFTs and DApps and offers Smart Contract solutions. Providing fast transaction services to organizations in general, Fantom specializes in reducing the transaction time to just two seconds. FTM is the native token of Fantom that utilizes the Smart Contracts to establish an affordable and coherent way to scale ledger transactions.
How Does Fantom Work?
Fantom utilizes the latest and upgraded consensus mechanism to minimize transaction times and increase the efficiency of Smart Contracts. This new mechanism is known as Lachesis, and it offers high congestion management ability to the network while also optimizing the Proof-Of-Stake protocol. The development team of Fantom is striving to enter into the decentralized solutions space with the phrase; to provide compatibility among all transaction entities worldwide. The Lachesis consensus is the Asynchronous Byzantine Fault Tolerance mechanism launched by Fantom to overcome different shortcomings of the POW and POS algorithms.
Lachesis has the potential to process the transaction at an adjustable speed and tolerate up to a third of rouge users who behave maliciously without causing any threat to the whole network. Unlike the time-taking validation needed by the POW, the ABFT process aims to go beyond the consensus of other BFTs and is intentionally structured to reduce transaction times and maintain scalability. Consequently, the Lachesis consensus mechanism yields a finality transaction that is efficient in terms of time and capable of successfully validating a transaction in a time of less than one second. Therefore, the Lachesis consensus mechanism heavily depends on the POS mechanism.
Salient Features Of Fantom
- Fantom utilizes a permissionless protocol and an ABFT to achieve speed, security, and decentralization.
- It achieves scalability by acting as a highly intensive DAG network.
- Fantom uses the Ethereum network’s virtual machine known as the EVM to allow access to Smart Contracts to its users.
Use Cases Of Fantom
- You can use FTM tokens for crypto staking and having regular gains by blocking rewards on the platform.
- One can also utilize the FTM coins as a governance token for making autonomous decisions.
- The token holders also use Fantom to participate in faster transactions at the global level as FTM ensures instant transactions.
Pros & Cons
Pros
- A huge number of institutional investors and venture capitalists support Fantom (FTM).
- Fantom tokens are incredibly operational, and one can use them for crypto staking, value transmission, and governance mechanisms.
- From July 2021 to date, Fantom tokens have reimbursed 1350 percent to the investors of FTM.
Cons
- There exist multiple obstacles for Fantom in terms of the creation of Non-Fungible-Tokens and Crypto Staking while competing with the leading cryptocurrencies, such as Ethereum.
- Fantom is not yet fully established and faces continuous and vital changes in its value over the shorter term.