What is Fantom?
Fantom (FTM) coin is the token of a high speed blockchain that has emerged to help address the speed and scalability issues that many blockchains face. In addition, Fantom announced the launch of Fantom finance, the first DeFi platform to be launched with the aBFT consensus mechanism.
Most common DeFi projects are based on the ethereum network, while this project is based on the Fantom (FTM) platform.
Fantom is the world's first DAG-based platform to solve the problem of third-generation platform expansion. The difference from existing platforms is the use of an improved DAG base protocol.
An important role of Fantom (FTM) is pledging (staking). As it has a real-world use case, FTM tokens may become a popular store of value token. FTM is needed to become a verifying node and thus receive revenue, much like a common PoS consensus mechanism.
What is the Purpose of Fantom (FTM)?
FTM is different from other DeFi tokens and has introduced a system to maintain the Lachesis platform protocol, which is excellent in terms of speed and fees. It is fast, and the fees are low.
The areas of application for Fantom are identity confirmation, evaluation queries, community management, item authentication, financial and asset management, content generation, and trading.
There may also be other applications for the platform that developers will find in the coming years.
Older public chains such as Bitcoin and Ether have a problem: the more nodes there are, the more decentralized they are, but the less speed and scalability they have. With DAG, the situation is the opposite and simply means that the more nodes that join the network, the faster they are – and scalability becomes infinite.
The Fantom project is also innovative compared to other projects as Fantom wants to use the highly secure Elliptic Curve Cryptography (ECC) technique to enhance the security of signatures and data transfer between nodes.
The advantages of ECC are its ability to ensure high security with short key lengths and to allow high-speed computation when signing. In addition, ECC makes it easy to design a secure cryptosystem by using the most efficient algorithm to solve the discrete logarithm problem.
How Does Fantom (FTM) Work?
Fantom is a DAG-based smart contract platform. Instead of packing all data into blocks, each user can submit data units (including, for example, transactions, consumption, etc...), and multiple users can submit data at the same time, meaning that the writing of data units is asynchronous and linked by reference relationships between data units (direct confirmation between nodes).
The Fantom project has made a number of technical innovations in an attempt to solve the "impossible triangle" of blockchain technology.
Fantom platform uses a new protocol called the "Lachesis protocol" to maintain consensus. This protocol will be integrated into the Fantom OPERA chain.
The aim is to allow a group of programs to be built on top of the Fantom (FTM) OPERA chain, allowing all users to enjoy instant transactions at almost zero cost.
Fantom Finance offers products: fMint, fSwap, and fLend:
- fMint, minting stable coins. This means that users can mint synthetic assets, fTokens, through fMint locked FTM tokens.
- fSwap, the exchange. fSwap supports trading of up to 176 synthetic assets that will be protected on-chain by the Opera network's proof-of-stake consensus. fSwap has the advantage of good depth, fast confirmation, and 0 slippages.
- fLend, lending, and borrowing. Users can borrow and lend through fLend, where different assets form a pool of funds and the lending rate is automatically adjusted according to market conditions, similar to Compound.
According to the foundation, these features are fundamental.
Fantom finance will offer on-chain transactions, lending, and pledging, and ensure security and speed. More importantly, users will not experience any delays or blockages in the platform.