DeFi Project: The Fantom Ecosystem
There are countless defi projects launching everyday in this space, each trying to solve a problem in blockchain. It’s pretty hard to keep up with them and what they have to offer. In this article, I will be exploring the Fantom ecosystem, its token and Use Cases. I am sure you will find it useful. Let’s get right into it.
What is fantom?
Fantom is a secure,scalable Layer 1 blockchain. It was founded by Computer scientist Dr Ahn Byung Ik and Micheal Kong in 2018. It aims to be the solution to the blockchain trilemma making security, decentralization, and scalability a good balance. It’s also considered as an alternative to Ethereum due to its cheaper transaction fees and smart contract functionality.
How does Fantom work?
The major technology Fantom is operating on is the Lachesis and opera chain network.
Lachesis is the aByzantine Fault tolerance (aBFT) also known as the leaderless proof of stake. It’s the consensus mechanism adopted by the Fantom network. Transactions can be confirmed almost immediately and will continue to work even when ⅓ of the nodes are faulty. This method is faster and helps secure transactions better than the other blockchains.
The opera chain layer is responsible for the deployment of decentralized applications on the network. This layer supports Ethereum virtual machine(EVM), the technology used in Ethereum to create smart contracts that supports dapps.
Fantom ecosystem overview
There’s a lot the Fantom network has to offer in the blockchain and DeFi ecosystem to incentivize users to build on their network. This includes;
Cross chain Bridge.
In every protocol built in this space, Interoperability is necessary in order for blockchains to transfer value, information and assets to each other. Bridging is the connecting link between different blockchains. The Fantom ecosystem is not lacking in this aspect as there are bridges connecting to over 8 blockchains namely Ethereum, Binance Smart Chain, Polygon e.t.c. The cross chain bridge increases cash flow into the network and creates a more decentralized ecosystem.
Decentralized apps (Dapps)
Fantom network was launched with big dreams to bring more developers in their network. The incentives created for developers to build apps of relevance was worth $1B. The opera chain layer makes building on Fantom easy for the average developer. This led to the creation of over 200 Dapps on the Fantom network ranging from Decentralized exchanges, oracles, lending protocols, and investments. This brought huge growth to the ecosystem in a little period of time.
The Fantom blockchain explorer is one of the key features of the platform. It can be used to check more information about tokens,transaction volume, hash rate and other important metrics. It works for ERC20, ERC1155, ERC 721, BEP 20, and other tokens. The interface is also easy to navigate as it was built by the developers of etherscan (Ethereum blockchain explorer). If you have used ethescan before, you should have no problem with FTM explorer.
The Fantom Token ($FTM)
It’s the native token of the Fantom protocol. It’s used to secure the network via staking. FTM can be used as an ERC 20 token on Ethereum and BEP 2 token on Binance. It has been listed on notable centralized exchanges like Binance, FTX, Bybit e.t.c.
Current price: $0.35879
All time high: $3.46
All time low: $0.00190227
Market cap: $911,590,800
Total supply: 3,715,000,000 FTM
Use Cases of the $FTM
- Staking : is an important part of blockchain security. FTM is used to secure the network and earn rewards in the form of APY(Annual Percentage Yield) which is about 13%. Liquidity staking is an added advantage on the platform. It’s the rewards gotten from staking used as collateral in other DeFi protocols.
- Payments of fees: FTM token is used for payment of transaction fees between users and smart contract creation on the network.
- Virtual shopping : Fantom network has made virtual shopping easy for its holders. They partnered with a crypto e-commerce brand, Shopping.io, to allow users purchase goods and services from retailers like Amazon,eBay and Walmart.They are one of the first cryptocurrencies to achieve that feat making cryptocurrencies more adoptable amongst them consumers.
- On-chain Governance: FTM can also be used to give opinions on how the network is being run, vote on proposals, and create new proposals. It’s a great way to give everyone an equal chance to improve the network and be involved in the development of the Blockchain.
The Fantom ecosystem has done so well for itself in the past years. They are trying to solve high transaction costs and serve as an alternative to Ethereum. It has enough potential to be one of the leading Blockchain in a couple of years. However, there is still room for improvement on the network.
This is an educational series and not a guide to making a buy bias. Make sure you do your research before buying any token.
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