What is Fantom (FTM) crypto and how does it work? All you need to know about FTM

What is Fantom (FTM) crypto?

Fantom is a decentralized and open-source platform designed for digital assets and decentralized applications (dApps). It offers a faster and more cost-effective alternative to Ethereum, employing a robust proof-of-stake consensus mechanism. Fantom ensures a stable equilibrium of security, decentralization, and scalability. Notably, transactions on the Fantom network have absolute finality, unlike Ethereum-based blockchains, enhancing security. Additionally, its highly scalable consensus mechanism bolsters decentralization and security.

Who is responsible for the creation of the Fantom Network?

Fantom was founded in 2018 by the Fantom Foundation, established by Computer Scientists Dr. Ahn Byung Ik and Michael Kong. Michael Kong currently serves as the CEO and CIO of the Fantom Foundation. The headquarters of the Fantom Ecosystem is currently located in South Korea. The network was designed to be a scalable smart contract platform for developers to build DeFi applications, offering enhanced scalability and decentralization as an alternative to the Ethereum Blockchain.

How does Fantom (FTM) work?

The Fantom network operates through two consensus mechanisms: Directed Acyclic Graph (DAG) and Lachesis. DAG enables rapid transaction confirmation for users on the platform, while Lachesis secures the various chains within the ecosystem. 

Lachesis employs the Byzantine Fault Tolerance algorithm, enabling nodes to autonomously create blocks, thus enhancing network transparency and guarding against potential malicious attacks. This decentralization ensures full freedom, which is further protected by the Byzantine Fault Tolerance algorithm.

Pros and Cons of Fantom (FTM)

Here are some of the key pros of utilizing the Fantom network:

• Rapid transactions: Leveraging DAG technology, the network can validate up to 300,000 transactions per second without requiring data from previous transactions, unlike other blockchains.
• Fast transaction confirmation: Fantom processes transactions within one to two seconds, significantly faster than other cryptocurrencies like Bitcoin and Ethereum.
• Low transaction costs: Transaction fees on the Fantom network are notably low, around $0.00001.
• Interoperability: Fantom is compatible with the Ethereum Virtual Machine (EVM), enabling popular Ethereum applications to function seamlessly on the Fantom network.
• Stability: Fantom cryptocurrency can be easily exchanged with stable currencies like USD at a stable exchange rate.
• Tiered governance: The network is governed by a multi-tier community utilizing transparent on-chain voting for decision-making.

However, there are some cons to consider:

• Reduced security: The DAG system may offer lower security compared to traditional blockchain technology.
• High inflation rate: Initially, Fantom experiences a 5% inflation rate, which is expected to decrease as the user base grows. However, this hasn't been the case for the Fantom network.
• Competition: Fantom faces significant competition in terms of scalability and security from competitors like NEO, Ethereum, and Hashgraph.

Price of Fantom (FTM)

As of August 2022, the price of the FTM coin has been relatively stable, hovering around $0.34. However, it is noteworthy that this price is significantly lower, approximately 90.26% below its all-time high of $3.50. Fantom crypto holds a market capitalization ranking around the 40th position, indicating an above-average standing. However, the trajectory of FTM coin value has been declining since its inception, largely due to increasing inflation concerns.

What are the advantages of utilizing Fantom (FTM)?

FTM crypto stands out for its compatibility with Ethereum-based smart contracts, offering scalability suitable for industrial applications. Utilizing Fantom allows for the efficient use of Ethereum's Solidity language in a faster, cheaper, and more secure manner. With its potential growth in the DeFi sector, Fantom could emerge as a leading cryptocurrency in terms of market capitalization and trading volume.

FTM crypto serves multiple functions within the Fantom ecosystem, including payments, staking, governance, and covering transaction fees. It exists as a BEP-2 token within the Binance ecosystem and an ERC-20 token within the Ethereum ecosystem, providing versatility across different platforms.

How to buy Fantom (FTM)?

Next, we'll explore the sequential procedure for purchasing FTM with BYDFi.

Step 1: Register for a complimentary account on the BYDFi website or mobile application

You have the option to sign up with BYDFi either through their mobile app or using your web browser. Here's how you can register with BYDFi using two methods:

Email registration:

1. Enter your email address.
2. Click "Send" to receive the verification code in your registered email inbox.
3. Input the verification code from the email.
4. Create a password.
5. Click "Get Started" to complete the registration process.

Mobile registration:

1. Select your country/region and provide your mobile number.
2. Tap "Send" to receive the verification code via SMS.
3. Enter the code received via SMS.
4. Set up a password.
5. Tap "Get Started" to finish the registration.

Step 2: Determine the desired amount of Fantom to purchase and proceed with the transaction

To purchase cryptocurrency with your chosen fiat currency on BYDFi, go to the "Buy Crypto" section on the main page. Keep in mind that fiat deposits are facilitated by third-party service providers, not BYDFi directly. You can select from 54 supported fiat currencies.

Next, choose the cryptocurrency you wish to purchase and input the desired deposit amount based on your preferred cash or cryptocurrency value, ensuring it meets the service provider's purchase limit conditions.

You can then select your preferred service provider for deposit, which may include Visa, Mastercard, SEPA, Apple Pay, or Google Pay transactions.

Once you click "Buy Now," you'll be redirected to the service provider's page to complete the KYC (Know Your Customer) process with them. It's important to note that the KYC record from BYDFi cannot be directly used for the service provider's KYC requirements.

Step 3: Assess fees and confirm your order

Please be aware that when buying crypto through BYDFi using fiat currency, you will encounter transaction fees from the service providers. It's essential to refer to the official website of the specific provider to ascertain the exact fees involved. Notably, BYDFi does not impose any additional transaction fees.

Step 4: Set up storage

Upon purchasing your crypto, you have the option to either store it in your personal crypto wallet or leave it within your BYDFi account.

Crypto assets held by BYDFi are safeguarded in offline, deep cold storage wallets, ensuring there's no single point of failure.

BYDFi implements multi-signature technology for both deposits and withdrawals, providing protection against potential attacks and the risk of losing access to keys or facilities.

In a worst-case scenario where the entire system, including the web server, transaction engine, and database, is compromised, the intruder would not possess enough keys to steal the funds since no private keys are stored on any of the cloud servers.

How to sell Fantom (FTM)?

You can liquidate your Fantom cryptocurrency through various cryptocurrency exchanges such as Binance or FTX. Follow these steps to sell your crypto assets:

Step 1: Log in to your account on the exchange platform.

Step 2: If your Fantom tokens are stored in an offline wallet, transfer them to the platform.

Step 3: Once the Fantom tokens are deposited for selling, select the sell option.

Step 4: Specify the quantity of Fantom you intend to sell and submit the sell order. Your cryptocurrency will be sold once the exchange matches it with a buyer.

Fantom price prediction

The 2022 FTM crypto price forecast appears optimistic, with expectations of reaching a maximum of approximately $3.65 by year-end and a minimum of about $3.20. The average price projection stands at around $3.38, indicating a positive outlook. Furthermore, forecasts indicate that the value of Fantom will continue to rise in 2023 and 2024, culminating in a new high in 2026.

The future of FTM

Fantom is actively engaged in several projects, with the latest addition being the FTM Incentive Program. The team is also developing various products to enhance competitiveness against other networks in the market. Furthermore, Fantom developers are working on the creation of their own blockchain.

In conclusion, Fantom crypto stands out as a faster and more cost-effective alternative to existing networks, presenting a potential challenge to Ethereum and Bitcoin. Its unique feature of independent nodes ensures uninterrupted operation even in the face of congestion. However, despite being highly scalable for crypto dApps, investing in Fantom carries risks inherent in the crypto market, including susceptibility to scams and hacks due to the lack of government regulation. Hence, thorough research is crucial before making any investments in crypto.