Fantom (FTM) ecosystem: A beginner’s guide to the highly scalable blockchain protocol
What is Fantom (FTM)?
Fantom is a DAG-based (Directed Acyclic Graph) smart contract platform for decentralized applications (DApps). So, is Fantom centralized or decentralized?
Fantom is a highly scalable, decentralized, permissionless and open-source platform used to build crypto DApps. DAG is a data modeling and structuring technology whose networks comprise vertices and edges, unlike blockchains, which are made up of blocks. As a result, crypto transactions are represented by vertices and are stacked on top of one another.
Simply said, a blockchain system resembles a chain whereas DAG’s design resembles a graph. Dr. Ahn Byung Ik of South Korea founded the Fantom Foundation in 2018, and the smart contract project has since grown to become one of the most popular blockchains for DeFi transactions.
It was created to address the shortcomings, including the lengthy transaction times of prior blockchain platforms like Bitcoin and Ethereum. FTM is the Fantom network’s native coin, which can be used for governance activities, compensating validators and providing network security.
This beginner’s guide on Fantom blockchain protocol aims to educate the community about the Fantom ecosystem by explaining how the Fantom Network works, how to buy Fantom (FTM) and the differences between FTM and Polygon (MATIC).
What is so unique about Fantom?
Traditional blockchain systems, such as the Bitcoin blockchain, aren’t designed for scalability; rather, they prioritize security and decentralization. A transaction on the Bitcoin network, for example, can take anywhere from 10 to 15 minutes. This makes scaling the network in terms of transactions difficult.
The Fantom team aims to fill this gap by utilizing a leaderless proof-of-stake (PoS) protocol that is used to protect the network (i.e., the blockchain does not compromise security or decentralization). Moreover, a transaction on the FTM network takes 1–2 seconds to complete. Also, the transaction costs are far lower than those of Bitcoin.