Fantom (FTM) Explained : Next hotbed for DeFi?

Boxmining

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Description

Fantom is a Directed Acyclic Graph (DAG) based smart contract platform that uses a proprietary proof-of-stake mechanism called Lachesis to validate transactions. It’s designed to be extremely fast wit...

Fantom is a Directed Acyclic Graph (DAG) based smart contract platform that uses a proprietary proof-of-stake mechanism called Lachesis to validate transactions. It’s designed to be extremely fast with exceptionally low fees, highly secure and infinitely scalable – solving all three of crypto’s elusive trilemma limitations. 0:00 Introduction 1:29 What is Fantom? 3:29 Native Token $FTM 4:36 Fun Fact #1 4:54 Advantages of Fantom 7:08 Disadvantages of Fantom 8:55 Fun Fact #2 9:08 Incentive Program & Conclusion Nathan's Youtube Channel: https://www.youtube.com/c/Cryptonauts Gemmy's Youtube Channel: https://www.youtube.com/c/CryptoGems1 ●▬▬▬▬▬▬▬Recommendations▬▬▬▬▬▬▬● 📖 Guides, tutorials and insights: https://boxmining.com/ Recommendation List: https://www.cryptoatlas.io/Boxmining 🌼Buy & Sell Bitcoin: https://join.swissborg.com/r/michaeOQZM 🔒Hardware Wallet: http://boxmining.co/ledger 👍🏻Brave Browser: http://boxmining.co/brave 📲Bybit Exchange (Most powerful): https://partner.bybit.com/b/boxyt 📲Binance Exchange : http://boxmining.co/binance ●▬▬▬▬▬▬▬▬▬▬Community▬▬▬▬▬▬▬▬▬● Boxmining clips: https://www.youtube.com/channel/UCjFy3VBgOZanySOLhQu6GaQ Boxmining News Website: https://www.boxmining.com/ Telegram Announcements: https://t.me/boxminingChannel ●▬▬▬▬▬▬▬▬▬▬▬Social▬▬▬▬▬▬▬▬▬▬▬● Twitter: https://twitter.com/boxmining Discord: https://discord.gg/9qCpqpZm8G Facebook: https://www.facebook.com/boxmining ●▬▬▬▬▬▬▬▬▬▬Disclaimer▬▬▬▬▬▬▬▬● I'm not a professional financial adviser and you should always do your own research. I may hold the cryptocurrencies talked about in the video.

AI Analysis

Fantom (FTM) is a powerful smart contract platform designed to tackle crypto’s persistent trilemma of decentralization, security, and scalability. It stands out by using a unique Directed Acyclic Graph (DAG) architecture combined with a proprietary proof-of-stake mechanism called Lachesis. This innovative approach aims for extremely fast transactions, exceptionally low fees, robust security, and infinite scalability, positioning Fantom as a strong contender in the DeFi space.

Here’s a deeper dive into what makes Fantom tick:

* What Fantom is All About:
* Fantom is built on a Directed Acyclic Graph (DAG) structure, which is different from traditional blockchains like Bitcoin and Ethereum. This design allows for more flexible and potentially faster transaction processing.
* It uses a special proof-of-stake mechanism called Lachesis, which is at the heart of its transaction validation.
* The core of Lachesis is an Asynchronous Byzantine Fault Tolerance Consensus (ABFT). This means that unlike synchronous systems where all nodes must agree simultaneously, Fantom's network nodes don't all need to process or agree on information at the exact same time. As long as a majority of validators reach consensus, a transaction can be validated and moved forward, making it super efficient – they even call it the "Gossip Protocol" because of how quickly information spreads and gets confirmed.
* Fantom operates on a multi-layered system: Layer 1 is the fundamental "Opera Core" layer where the Lachesis consensus happens. Layer 2 handles smart contract programmability and is compatible with Ethereum Virtual Machines (EVM), which is a big deal for developers. Layer 3 provides API integrations for decentralized applications (dApps) and developers, making it easy to build on top of Fantom.

* The FTM Token Explained:
* FTM is Fantom's native token and it's essential for securing and powering the network.
* You use FTM to stake, which basically means pledging your tokens to support validator nodes without actually giving them away (it's "non-custodial," so your tokens stay in your wallet!).
* These validator nodes get rewarded with a cut of the transaction fees for their work.
* FTM holders also get a say in the network's future through on-chain voting governance. Your vote's weight depends on how much FTM you hold, giving more power to those who are more invested in the ecosystem.
* While you can hold FTM on exchanges like Binance, if you want to participate in staking, you'll need to transfer your tokens to Fantom's native F-Wallet, which is available on desktop and mobile.

* Fantom's Surprising Growth:
* Fantom has seen incredibly fast adoption. Back in January 2021, there were less than 5,000 unique wallet addresses holding FTM. By September 2021, that number exploded to over 600,000! This shows a huge increase in people getting involved with the Fantom ecosystem.

* Why Fantom Rocks (The Advantages):
* Blazing Fast Transactions: Fantom aims for up to 300,000 transactions per second (TPS). While they're not quite there yet, they've hit an impressive 10,000 TPS on their testnet, and the mainnet comfortably handles around 20 TPS when there's no congestion. The key is their transaction finality, which is about one second – meaning your transactions are confirmed almost instantly, making it one of the fastest platforms out there.
* Sweet Staking Rewards: If you stake your FTM, you can earn a solid annual percentage yield (APY) ranging from 4% to 26%. Plus, it's non-custodial, so your tokens are always under your control, which is a huge peace of mind.
* A Thriving dApp Scene: Fantom already boasts a rich ecosystem with over 40 functional dApps and DeFi platforms. This includes popular decentralized exchanges like SpookySwap and SpiritSwap, and DeFi applications like Curve and Tune Finance, along with Fantom's own native finance application, Fantom Finance. All this active development means the network is constantly growing and evolving.
* Ethereum Compatibility: This is a massive win for Fantom! Its Opera network is fully compatible with the Ethereum Virtual Machine (EVM). This means that any dApps written in Solidity or Vyper (the main languages for Ethereum development) can easily run on Fantom, making it super attractive for developers looking for a faster, cheaper alternative to Ethereum.
* NFT Ready: Love 'em or hate 'em, NFTs are a big part of the crypto world, and Fantom supports them. You can mint NFTs on the platform, and there's a vibrant NFT marketplace with strong community participation.

* The Not-So-Great Parts (Disadvantages):
* Tricky Transfers: One pain point is that FTM has limited wallet support, which can make transferring purchased tokens from centralized exchanges a bit complex and, frankly, expensive. If your FTM is an ERC-20 token on the Ethereum network, bridging it to the Fantom network can cost about 30 FTM or 0.1% in fees. No one likes those bridging fees!
* Shrinking Staking Rewards: By design, the staking rewards on Fantom are programmed to decrease as more people join and actively stake their FTM. While this helps manage the token supply, it might make new users less excited about staking over time as rewards diminish.
* High Barrier for Validators: Becoming a validator node on Fantom is pretty exclusive. Initially, it required 3.175 million FTM, which was a hefty $63,000 when FTM was only 2 cents. But as FTM's price shot up to $1.50 (in September 2021), that requirement turned into a staggering $4.7 million! While they've since reduced it to 1 million FTM, it's still out of reach for most people, likely costing around $1.5 million at that price point. This centralizes validation power to those with deep pockets.

* Fantom's Impressive DeFi Footprint:
* Fantom has accumulated over $1.4 billion in Total Value Locked (TVL). This makes it the fourth largest EVM network by TVL, which is quite remarkable considering its overall market capitalization was only rank #44 at the time of the video. It shows just how much capital is flowing through and trusting the DeFi applications built on Fantom.

* Boosting Growth with Incentive Programs:
* A major factor driving recent interest in Fantom is its new grants program. This is a massive $370 million USD initiative designed to entice developers to build on the Fantom network. Developers can apply for grants equivalent to their project's TVL, up to 5 million FTM. This move is expected to significantly boost Fantom's market cap and trading volume by attracting top-tier projects and talent.
* Looking ahead, Fantom is primarily focused on making Lachesis transactions even faster and building more cross-chain bridges. These bridges will connect Fantom to other blockchains, further expanding its reach and interoperability within the broader crypto ecosystem.

Fantom definitely presents itself as a compelling platform, especially given its focus on speed, low fees, and developer-friendliness through EVM compatibility. While the high cost to run a validator node is a notable drawback, the strong dApp ecosystem and massive developer incentive program suggest a very active and promising future for the network.

Transcript

Hey everyone, welcome back to the Box Mining Channel. I'm Nathan. I'm Jemmy. And today we're going to be talking about a project, it's called Phantom. So without further ado, let's get into it. With so many blockchain platforms claiming to be able to solve the crypto's dilemma of decentralization, security and scalability, it can be unclear what is real and what's just, you know, clever ghost chain marketing hype. Despite their spooky name, one platform that's definitely not a ghost chain is no...

Hey everyone, welcome back to the Box Mining Channel. I'm Nathan. I'm Jemmy. And today we're going to be talking about a project, it's called Phantom. So without further ado, let's get into it. With so many blockchain platforms claiming to be able to solve the crypto's dilemma of decentralization, security and scalability, it can be unclear what is real and what's just, you know, clever ghost chain marketing hype. Despite their spooky name, one platform that's definitely not a ghost chain is none other than Phantom with a native coin, FTM. This project has seen parabolic growth over the past two months with HODLers seeing more than a thousand percent increase in the FTM coin price. So what is Phantom? What's different about this ecosystem compared to the hundreds of other OTCs in development right now? And will this price dominance continue into the future? In this video, we'll deep dive into the fundamentals of Phantom, the pros and cons of the platform, and we'll also explore Phantom's roadmap for the future. So buckle your sheet belt. It's time to get spooky. So what is Phantom? Phantom is a directed acyclic graph or DAG based smart contract platform that uses a proprietary proof of stake mechanism called Lachesis to validate transactions. Yes, it's a lot, but stay with me here. It's designed to be extremely fast with exceptionally low fees, highly secure, and infinitely scalable, solving all three of crypto's elusive trilemma limitations. It does this through a type of proof of stake consensus algorithm, also known as, check this out, the asynchronous Byzantine Fault Tolerance Consensus, or ABFT for short. We should just stick to ABFT because that was really hard to pronounce. Blockchains like Bitcoin and Ethereum are synchronous. This means that transactions are written into blocks one at a time. While it is secure, this method suffers from noticeably slow confirmation times and transactions. With an asynchronous model like Lachesis, not all nodes have to agree or even process information at the same time. In fact, Phantom's Lachesis Consensus is often called the Gossip Protocol. Because as long as consensus is reached with the majority of validators, the network can validate a transaction and move on. And in fact, all of this exists on Phantom's layer one, known as the Opera Core layer. Anyone who's worked in hospitality will be familiar with the Opera name. It's the core software suite by Oracle that is used in hotels and restaurants. There's also a Phantom of the Opera joke in there somewhere, but I just can't find it. Layer 2 consists of smart contract programmability and Ethereum virtual machines, while Layer 3 provides API integration for dApps and developers. Living on the Phantom ecosystem is the platform's native token, FTM. FTM is used to both secure and power the network through a robust staking mechanism. The platform is also a validator token, or a collection of people who stake or pledge their tokens. This staking happens non-custodially, meaning that you don't actually give your tokens away, you just pledge them in support of a validator node. Each validator node is then rewarded proportionally by the fees that are gathered from each transaction. FTM can also be used in on-chain voting governance. When crucial design code changes are proposed, FTM holders are invited to vote on whether the new code will be adopted. The weight of your vote depends on the amount of FTM you hold at the time. FTM can be held on exchanges like Binance, but to participate in staking, you'll have to transfer your tokens to the native F-Wallet on desktop or mobile. FANTOM fun fact number one. FANTOM's adoption seems to be rapidly accelerating. In January 2021, there was a little under 5,000 unique FANTOM addresses. Fast forward to September 2021, and there are now over 600,000 unique wallet addresses of people holding FANTOM. So, the pros and cons of FANTOM. Advantage number one. High transaction speed. FANTOM claims that the network will eventually be able to handle up to 300k transactions per second. Well, they aren't there yet, but they have managed 10,000 transactions per second on the testnet and over on the mainnet. It's taking away uncongested at around 20 transactions per second. They have managed to dial down transaction finality to around one second, making it one of the fastest confirmation layer platforms available. FANTOM number two. For participating in node validation, FTM holders that stick their tokens can receive reward ranging from 4% to 26% APY. As an added bonus, FTM's staking mechanism is non-custodian, meaning you don't have to hand over your tokens when staking. They remain in your wallet the whole time. FANTOM number three. Rich debt ecosystem. FANTOM has a rich ecosystem with over 40 functional debts and DeFi platforms. There are decentralized exchanges like SpookySwipe and SpiritSwipe. DeFi applications like Curve, Tune Finance, as well as FANTOM's native finance application, FANTOM Finance. Active development means that FANTOM will continue to grow as more and more people use the network. Is that advantage number four? Or number three? Number four? A lot of advantages, huh? So many advantages. And other advantage is that it's EVM compatible. FANTOM's Opera network is fully compatible with EVM or Ethereum Virgin Machine, meaning that any dApps written in Solidity or Viber run seamlessly on FANTOM. So the final advantage I could think of is that it supports NFTs. Well, love them or hate them. Million dollar JPETs, otherwise known as non-fungible tokens or NFTs, are here to stay whether you like it or not. FANTOM supports NFT minting and has a massive NFT marketplace with loads of community participation. Okay, so that's the advantages. Now move on to the fun part, the disadvantages. So, there's a advantage number one. Convoluted Transfer Process. As FTM has limited wallet support, transferring any purchased tokens from centralized exchanges can be complex and potentially expensive. FTM can exist on the Ethereum network as an ERC-20 token, but the transfer from FTM to ETH will cause like 30 FTM or 0.1% in bridging fees. Boo! Bridging fees. It sucks. Disappointation of a team. Diminishing Staking Rewards. By design, the Staking Rewards are programmed to diminish as small and more people join and actively stack their FTM to validation nodes. While this does help to slow the release of the remaining fixed supply, it does disincentive adoption, especially as the network grows. So, moving on to the last disadvantage, restrictive FTM data node requirements. When FTM first went live, FTM required 3.175 million FTM to be an active node. That was a lot easier when FTM was worth around, you know, 2 cents. And setting up a node costs around 63k US dollars. With FTM recently crossing $1.50 in September 2021, the price shoots up to $4.7 million. FTM have recently reduced this requirement to 1 million FTM, but it still remains out of most of people's reach. Yeah, it's still pretty expensive. A million dollars. I know, right? Fun fact number two. With over $1.4 billion total value locked, FTM is currently the fourth largest ETM network in the world, despite the mean rent number 44 file market cap. On top of everything else we've covered, another thing which has driven solid interest into the project recently is the announcement of the FTM grants program. This is a $370 million program in USD to incentivize developers to build on FTM. Developers will be able to apply for grants equivalent to the amount of TVL in their project up to 5 million FTM, a move that will definitely boost market cap and trading volume. While Fantom hasn't said much in the way of roadmap development, they have made it clear that they are focusing on reducing Lachese's transaction speed even further and building more cross-chain bridges to include other blockchains in the network. So that's it. Thanks a lot for tuning in, guys. Me and Jemmy put some time into making this video, so if you enjoyed it, please leave us a like and subscribe for more videos like this. And let us know what you think. Is there anything that you want us to cover? Is there anything that you're excited about? Please let us know. We're teaming up to do a bunch of content together because, as you know, we're in a new dream team over here. So, yeah, I mean, just let us know what you think. And we really want to interact more with you guys. So please let us know. All right. Talk to you soon. Excuse me. Excuse me. Yes. What's going on the line of service we've done with that –aleb. Here we go. Excuse me. Yes! Here we go. It are certainly sorts of cool things. We bear a better road. licence on Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home Home