“The Decentralized Finance or DeFi is growing at a tremendous pace and Ethereum blockchain being the largest and the most problematic ecosystem in the space has led to the creation of other smart contract enabled DeFi protocols that provides greater speed of transactions at the fraction of the cost of Ethereum network. Fantom is a second generation smart contract platform offering high scalability and low fee.”
Fantom (FTM): The Origin
Fantom was launched in the year 2019 by South Korean Blockchain scientists due to the emerging problems of scalability and high gas fee in Ethereum. Fantom is an open source project and its source code can be viewed by anyone and its governance model allows users to suggest any changes for its improvement. Since its inception many projects have expanded from Ethereum to Fantom including Sushiswap, Nansen, USDT and USDC. FTM is the native token of Fantom.
What makes Fantom a DeFi Gem?
There are multitude of reasons that makes Fantom a DeFi gem and they are listed below:
Extremely Fast Smart Contract Interactions
The Fantom network boasts to have a smart contract interaction of less than 2 seconds making it one of the fastest second generation smart contract enabled platforms. This high speed transactions and low waiting time has made Fantom one of the most liked choices among the DApps and DeFi projects on the Ethereum ecosystem as they are being stifled by the high gas fee model of Ethereum.
Innovative Consensus Mechanism
Fantom uses an innovative self designed consensus mechanism known as Lachesis. It is an improved version of the proof-of-stake consensus mechanism that introduces a leaderless design that removes the need for network confirmation while building and executing transactions thus enhancing the speed.
The Fantom platform is completely compatible with the Ethereum Virtual Machine (EVM) thus providing developers on Ethereum to build DApps on Fantom with the familiar tools like Truffle and the languages like Solidity. This makes it easier for the developers to have an Ethereum like experience at a fraction of cost and time.
Extremely Low Fees
As Fantom is a second generation smart contract platform and uses the leaderless model of Lachesis, it can execute transactions without network confirmation thus preventing fees in the process. Fantom provides the developers with development tools at a fraction of cost that would otherwise incur on Ethereum.
Fantom: The Future
Fantom is Ethereum compatible and it can be considered as a wise move by Fantom developers as it can now work alongside the largest DeFi ecosystem of Ethereum rather than acting as a competitor. It has showcased it as a blockchain platform that is interoperable with multiple chains and can be used as an additional chain to these large cap market leaders. As long as these large market leaders such as Ethereum exist with their share of troubles, Fantom and such 2nd generation blockchains will thrive in their vicinity in the times to come.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
Photo by nxtgenvirte