What is Fantom (FTM)? Explanation of this layer-1 coin
Fantom (FTM) is a blockchain designed to be faster, cheaper, and more scalable than many existing networks. The platform allows developers to build smart contracts and decentralized applications (dApps) without high transaction fees or delays.
In this article, you will learn what Fantom is, how the network works, and why it is often mentioned as one of the fastest layer-1 blockchains. You will also discover which alternatives with similar features are available at Coinmerce.
In short
- Fantom (FTM) is a layer-1 blockchain focused on speed, scalability, and low costs
- It uses the Lachesis consensus mechanism for fast transactions without a central authority
- Fantom supports DeFi, NFTs, and smart contracts
- Coinmerce does not offer FTM, but similar networks are available
- Alternatives with comparable features include Avalanche, Polygon, and Arbitrum
What is Fantom (FTM)?
Fantom (FTM) is a layer-1 blockchain developed to enable fast, scalable, and low-cost transactions. The network aims to solve the limitations of older blockchains such as Ethereum, where transactions can sometimes be slow and expensive.
Fantom uses a unique technology called Lachesis, a consensus mechanism that increases the speed and efficiency of the network. This allows transactions to be processed almost instantly while maintaining security and decentralization.
The goal of Fantom is to provide a platform where developers can build decentralized applications (dApps) that are user-friendly, fast, and scalable. Thanks to its low costs and high throughput, Fantom quickly became popular within the world of DeFi (decentralized finance) and other blockchain applications.
Although Fantom itself is not available at Coinmerce, there are similar projects that fulfill the same functions and can be traded at Coinmerce. These alternatives are discussed further below.
Price and history of Fantom (FTM)
Fantom was founded in 2018 by the South Korean Fantom Foundation, led by founder Ahn Byung Ik and technical director Andre Cronje, who later became known as an influential developer within DeFi.
The launch of the mainnet, called Opera, took place in December 2019. From that moment on, the network could operate independently and developers were able to build dApps.
The price of FTM experienced strong fluctuations in the years that followed. During the bull market of 2021, the price of FTM rose significantly due to the growth of DeFi applications built on Fantom. During this period, Fantom ranked among the top 30 cryptocurrencies by market capitalization.
As with many projects in the crypto market, the price later declined when the market corrected. Nevertheless, Fantom remained an important platform for developers seeking scalable and fast solutions.
The volatility of FTM shows that market fluctuations affect layer-1 projects, but also that there is lasting interest in alternative infrastructure alongside Ethereum.
What is Fantom used for?
Fantom is designed for building applications that benefit from high speed and low transaction costs. The network supports smart contracts, just like Ethereum, but processes transactions faster thanks to its DAG-based consensus.
DeFi and applications on the network
Many DeFi applications are active within the Fantom ecosystem, including decentralized exchanges (DEXs), lending platforms, and yield farming projects. Well-known examples include SpookySwap and Geist Finance.
In addition to DeFi, there are also applications for NFTs, supply chain management, and identity verification. Developers can easily migrate and deploy dApps on Fantom using the Solidity programming language, which is also used on Ethereum.
This compatibility makes the network attractive to developers looking for a faster and cheaper environment for their applications.
Speed and cost as key focus
A major advantage of Fantom is its transaction speed. Thanks to the Lachesis mechanism, the network can process thousands of transactions per second with a finality of approximately one second.
Transaction fees are generally below $0.01, making the network suitable for applications involving microtransactions or high volumes.
Because of these characteristics, Fantom has become popular among developers seeking efficiency without sacrificing decentralization.
How does Fantom work in broad terms?
Fantom uses a Directed Acyclic Graph (DAG) instead of a traditional blockchain structure. Rather than blocks being added linearly, multiple transactions can be processed in parallel.
The consensus mechanism, Lachesis, is based on Asynchronous Byzantine Fault Tolerance (aBFT). This means the network can continue to operate securely even if part of the nodes are unreliable.
Transactions and network logic
Each node in the network can independently validate transactions. This increases speed because not every transaction has to wait for global approval. Transactions are later synchronized through the DAG structure.
This approach makes Fantom energy-efficient and effective, as it does not rely on mining or proof-of-work. As a result, users can perform transactions without the network slowing down, even at high volumes.
Ecosystem and adoption
The Fantom ecosystem consists of developers, users, and DeFi projects. In 2021, the network grew rapidly, partly due to low costs and collaborations with various protocols.
The Fantom Foundation stimulates growth through grants and partnerships. This has led to integrations with wallet providers, bridges to other networks, and collaborations with companies in the fintech sector.
Although activity has declined since 2022 due to broader market trends, Fantom remains active in developing new features and improving its infrastructure.
Coinmerce does not offer FTM: which alternatives suit fast smart contract networks?
Coinmerce currently does not offer FTM, but there are several layer-1 and layer-2 networks with similar characteristics that are available.
These alternatives focus on high speed, low costs, and smart contract support, making them attractive to users seeking the same benefits as Fantom.
Alternatives to Fantom at Coinmerce
Avalanche (AVAX)
Avalanche is a layer-1 blockchain that, like Fantom, focuses on speed and scalability. The network uses its own consensus protocol that can process thousands of transactions per second at low cost.
Avalanche supports multiple subnetworks and provides room for DeFi, NFTs, and institutional applications. Thanks to its high performance, Avalanche is often seen as one of Fantom‘s main competitors.
Polygon (POL)
Polygon is a layer-2 solution built on top of Ethereum that makes transactions faster and cheaper. The network is compatible with the Ethereum Virtual Machine (EVM), making it easy for developers to migrate dApps.
Although Polygon is technically not a layer-1, it offers many of the same advantages as Fantom, with added scalability and a large ecosystem of partners and projects.
Arbitrum (ARB)
Arbitrum is a layer-2 scaling solution that uses rollups to process transactions off the Ethereum chain. This reduces costs and increases transaction speed while maintaining Ethereum‘s security.
For users looking for speed and low fees, Arbitrum offers an alternative that aligns with Fantom‘s vision while operating within the secure framework of Ethereum.
Frequently asked questions
What is Fantom (FTM)?
Fantom is a layer-1 blockchain focused on speed, efficiency, and low costs. It uses the Lachesis mechanism to confirm transactions almost instantly.
What is Fantom used for?
Fantom is used for DeFi applications, NFT projects, supply chain management, and other smart contract use cases. The network supports developers building scalable applications.
Is Fantom a layer-1?
Yes, Fantom is a layer-1 blockchain. This means it has its own network and consensus mechanism, without relying on other blockchains.
What are alternatives to Fantom?
Alternatives to Fantom include Avalanche, Polygon, and Arbitrum. These networks offer similar speed and functionality and are available at Coinmerce.
What is the difference between Fantom and Avalanche?
Fantom and Avalanche are both layer-1 blockchains focused on scalability and speed. The main difference lies in their consensus mechanisms: Fantom uses Lachesis (aBFT), while Avalanche uses its own Avalanche protocol. Both networks support smart contracts and DeFi applications, but Avalanche has broader adoption and a more extensive infrastructure.