Fantom Blockchain Overview
Layer 1 blockchains have been one of the hottest topics amongst the cryptocurrency community in 2021. As more L1s are endorsing themselves as the most superior technologies, the details regarding these technologies can be lost within the social media noise. This article will explore Fantom ecosystems’ capabilities and features that make it stand out from other L1 platforms.
On a comprehensive level, these new blockchain networks like Fantom aim to solve the trilemma issue within the blockchain, that is, the issue of not sacrificing security, decentralization, and speed as more transactions go through the network.
Fantom Network: Macro Overview
Fantom network had its main net launch in December of 2019, according to their main website, the number of transactions per day has grown by over a hundred times since January 1, 2021, with the number of unique addresses growing by twenty-nine times within that same time frame. Currently, there are 300,000 transactions per day with 145,000 unique addresses.
Fantom’s main DeFi advisor and software architect is Andre Cronje, the creator of Yearn Finance. He is currently the chairperson of the Technology Council of Fantom Foundation based in Seoul, South Korea. Multidisciplinary individuals within science, engineering, and research are currently engaged within the foundation.
“I don’t build for speculators” – Andre Cronje
The ecosystem possesses Ethereum Virtual Machine (EVM) compatibility so that Developers do not need to learn any new programming language to build on Fantom. Code on Ethereum can be mirrored on Fantom with ease due to the EVM which allows a “drag and drop” type of functionality. There are currently 40+ compatible decentralized applications that are built off similar programming languages to Ethereum that are tied to the Fantom network. Some of these well-known applications include SushiSwap, Curve, Superfarm NFT marketplace, Fantom fWallet, Fantom Safe, Fantom Explorer, The Graph, Chainlink, and Band Protocol, amongst others.
According to an article by DeFiCoins, while several of these dApps allow peer-to-peer lending services and staking, the overall goal of the Fantom ecosystem is to become the go-to IT infrastructure for the future development of smart cities. “The team foresees the platform to be useful across different sectors like smart home systems, healthcare, public utilities, traffic management, environmental sustainability, projects, and education.”
Fantom Network: Distinctive Capabilities
One of the most unique features of the Fantom network is its efficient consensus mechanism. They are able to prove truth with a block DAG consensus mechanism, so when transactions are validated on the Fantom network, it is not done through mining but done through the nodes that prove the truth. Both Fantom and Ethereum are using EVM which allows the same smart contract functionality, however, Fantom is able to execute these transactions in a much quicker and cheaper way. Fantom can process 300,000 transactions per second while ETH 2.0 will only process 100,000 transactions per second, even after the 2.0 upgrade is completed in 2022.
On Fantom’s website, they boast that they “are the first layer 1 network to enable all users to make and vote on improvement proposals in a fully decentralized manner.” The software may also be used by any corporate or government entity wishing to access the benefits of blockchain for their operations.
In conclusion, we get into this mindset where we compare different blockchains, however, the truth is that they are going to complement each other versus compete with each other due to the variations in consensus and capabilities that each network offers. Developers will choose the networks that work best for their solution. Bridging allows transactions from one network to the next network. Since both Fantom and ETH are EVM compatible, one will be able to seamlessly bridge transactions from one network to any other EVM coordinating network.
The future of Web 3 is interoperability. There are many use cases for trustless systems, and one chain will not have the ability to host all activities. This is a nascent technology with use cases not yet discovered. Layer 1 networks with unique capabilities will be fertile ground for new solutions.