What is cryptocurrency Fantom (FTM) and how does it work?

What Is Fantom (FTM)? 

The Fantom Foundation describes Fantom as “a high-performance, scalable, and secure smart-contract platform.” 

The platform encompasses distinctive components.

The Fantom Opera blockchain serves as the foundation. It’s an open-source directed acyclic graph network that is compatible with the Ethereum Virtual Machine so it can run existing smart contracts and create new contracts that interact with contracts on Ethereum.

Fantom transactions are validated by Lachesis, a leaderless Proof of Stake system that employs a custom asynchronous byzantine fault-tolerant consensus mechanism. ABFT validations are faster and less expensive than those that establish consensus through Proof of Work or conventional Proof of Stake schemes. ABFT systems finalize transactions in seconds instead of minutes.

Each Fantom-based dApp runs on its own blockchain network. These blockchains can have custom tokens, economies, and governance rules. They all benefit from the Lachesis consensus mechanism and they can interact with dApps running on different Fantom blockchain networks. This is why Fantom sometimes describes its platform as a network of networks.

An EVM-compatible virtual machine allows Opera blockchains to execute Ethereum smart contracts and to integrate with Ethereum-based dApps.

The Fantom utility token, FTM, is used for rewarding validators, executing financial transactions, securing governance rights, and paying network fees. FTM is available on major cryptocurrency exchanges, including Kriptomat.

The Fantom decentralized finance system comprises three components:

• fMint lets you mint fUSD, a stablecoin that’s pegged 1:1 to the U.S. dollar. fUSD coins can be freely interchanged with FTM. 
• fSwap is a decentralized exchange that supports conversion among more than 175 synthetic tokens, including fBTC and fETH.
• fLend lets you earn interest by lending FTM and fUSD to the Fantom liquidity pool. You can also use fUSD funds as collateral for purchasing and trading synthetic tokens.

Finally, Fantom provides a wallet designed for holding FTM, fUSD, and synthetic tokens. Fantom DeFi transactions can be executed directly from within the wallet.

How Does Fantom Work? 

Fantom’s components are modules that can be linked together by dApp developers. All of the platform’s components have stand-alone utility as well as integration links that allow them to be clicked together into applications on the Fantom smart contract platform at low cost.

One way of understanding the Fantom platform is to think of it as a full-service ledger for dApps. Every dApp has a user interface, a database of some kind, and custom code to perform calculations and other functions. And every dApp benefits from a reliable, distributed, decentralized ledger for validating and recording transactions. Fantom provides the ledger – not with a simple blockchain and an API, but with a full suite of utilities and tools that provide an easy-to-use interface developers can use to implement dApps.

Developers who use conventional blockchains face what is known as the blockchain trilemma, which requires them to balance transaction speed, security, and decentralization. Ledgers based on Bitcoin, Ethereum, and other widely used platforms can optimize one or two of these factors, but not all three.

Fantom says its ABFT consensus protocol provides full security and decentralization while supporting much greater transaction speed and lower costs. Simple FTM transactions are finalized in about one second and cost just $0.0000001.

Who Are the Founders of Fantom?

Fantom was founded in 2018 by Ahn Byung Ik, a South Korean computer scientist. Before founding Fantom, Ahn served as president of the Korea Foodtech Association and created a successful Yelp-like platform called SikSin.

Ahn left Fantom in 2019. Since February 2019, Fantom has been led by the Fantom Foundation, a registered Cayman Islands corporation. The Fantom Foundation is a team of 28 engineers, scientists, researchers, designers, and entrepreneurs. 

Fantom FTM

Buy

Bitcoin BTC

Buy

Ethereum ETH

Buy

XRP XRP

Buy

Fantom’s FTM initial coin offering was held in June 2018. Fantom sold 40% of the total supply of 3.175 billion tokens, raising $369.65 million.

What Makes Fantom Unique?

Fantom’s single-minded focus on supporting dApp development gives it a distinctive place within the cryptocurrency world, especially for developers. The FTM utility token has value, but it’s really there to reward validators and make transactions run smoothly. 

The unique aspect of Fantom is its rich ecosystem of modular tools, all of which can be snapped together to share information and speed development. Every element of the Fantom platform has been designed with decentralization and interoperability in mind.

Fantom is also committed to openness. For example, the platform’s source code is available via open-source licensing at Github. Anyone can create building blocks using Fantom code and APIs.

In operation, Fantom supports open participation. Anyone can run a node on the Opera blockchain. That requires a 3.175  million FTM stake, but that doesn’t limit your participation. Just delegate one FTM or more to a validator node and you can start earning rewards.

Fantom has an ERC-20 token, but it can’t be used directly on the Opera blockchain. ERC-20 tokens that arrive in your Fantom wallet are automatically converted to Opera FTM. Fantom’s ERC-20 tokens are used on the Ethereum network. Fantom also supports BEP-2 tokens that run on the Binance blockchain.

Because of Fantom’s distinctive ABFT consensus algorithm, all transactions are concluded at very low cost.

How Many Fantom (FTM) Coins Are in Circulation?

The FTM coin was launched in a June 2018 ICO. The total supply of FTM coins is capped at 3.175 billion. tokens are currently in circulation.

Fantom made 40% of the total token supply available for sale at the ICO. The rest are reserved: 30% for market development, 15% for advisors and contributors, and 15% for Fantom project team members and founders.

How Is the Fantom Network Secured?

The Fantom ledger is secured by Lachesis, the project’s ABFT consensus algorithm. According to Fantom, Lachesis has four main benefits.

First, it is asynchronous. Nodes needn’t wait for other nodes to act before processing commands. This leads to greater throughput and better performance in executing and finalizing transactions.

Second, Lachesis is fully decentralized and leaderless. No participant plays a privileged role in validating or securing the network.

Third, Lachesis is secure. The ABFT consensus algorithm is specially designed to provide reliable information even when some nodes act maliciously.

Finally, Lachesis provides final confirmation immediately, with no need to wait 30 minutes or more for block confirmations.

How To Use Fantom

Fantom is of interest primarily to entrepreneurs and software developers who seek to create secure distributed applications. Every part of the ecosystem is attuned to the unique needs of dApp development.

That said, the FTM coin can also be of interest to investors. The coins provide entrance into Fantom’s PoS validation process, so you can earn rewards based on becoming a validator or delegating coins to an established validator. You can also use FTM to acquire fUSD, which can be used as collateral for acquiring and trading synthetic tokens.

How To Choose a Fantom Wallet

FTM coins and other Fantom assets can be stored in conventional wallets. Their compatibility with Ethereum ensures that keys will be secure in online, offline, and hardware wallets.

Fantom offers a free wallet as part of the Fantom project. This wallet’s user interface provides streamlined access to all parts of the Fantom ecosystem. 

The Fantom wallet performs automatic conversion of Fantom ERC-20 and BEP-2 tokens that run on the Ethereum and Binance networks.

Kriptomat offers a secure storage solution, allowing you to both store and trade your FTM tokens without hassle. Storing your Loopring with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling FTM, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

Fantom Proof of Stake

The Lachesis ABFT consensus mechanism is an enhanced PoS system. Anyone can be a validator by staking 3.175 million FTM. Users can participate in validation – including earning rewards – by staking one or more FTM to established validators.

The reward for staking tokens to a validator for 365 days is equivalent to a 13% annual percentage yield. Delegating without a long-term commitment earns a 4% APY.

Staked FTM are locked up and can’t be used for transactions, but Fantom users can employ them as collateral for minting sFTM that can be used in Fantom’s DeFi application. There is no charge for minting or repaying sFTM in Fantom’s DeFi world. 

Bottom Line

Fantom is a well-thought-out platform for developing and deploying dApps based on digital assets and smart contracts. Tools and components speed and ease the creation of dApps that run securely, quickly, and inexpensively.

The FTM coin is attractive mostly because of the role it plays within the Fantom ecosystem, but it can also be traded and used to generate passive income when staked within the Fantom PoS network.

Fantom FAQ

Here is practical advice about getting started with this unique cryptocurrency.

How to Buy Fantom

The best place to purchase FTM coins is at Kriptomat, the industry’s leading exchange for simple, fast, inexpensive cryptocurrency trading. Visit the How to buy Fantom page to see how easy it can be.

How to Sell Fantom

Selling FTM coins is fast, easy, and inexpensive at Kriptomat, especially if they’re stored in your Kriptomat wallet. Open an account in minutes, start trading in seconds.

What Is Fantom’s Price?

Kriptomat always provides the current Fantom price along with historical data, transaction assistance, and news about this fascinating currency.

The price of FTM is influenced by market factors, news reports, economic developments, and the general state of the world economy.

The current price is EUR and the 24-hour trading volume is EUR. 

FTM is currently ranked of all cryptocurrencies by total market cap, with a market cap of EUR. It has a circulating supply of FTM and a max supply of FTM.

Register now to get started with this unique dApp platform.

If you’re experiencing any issues or have any questions at all, please don’t hesitate to reach our Customer Support Team. We’re always here to help!