📖
Web3 Encyclopedia
  • Welcome aboard!
  • Source
  • 😀Evolution from Web 1.0 to Web 3.0
    • Web 1.0 Web 2.0 Web 3.0
    • Key Features
    • Current Limitations
    • Future of Web 3.0
    • Learn: What Is Web3?
    • Learn: Will Every Brand Have a Web3 Strategy?
    • Learn: Big Ideas in 2023
    • Learn: The Web3 Paradox: Why Scaling Usage Alone Won't Lead to Mass Adoption?
    • Learn: Is Web3 A Marketing Buzz or Tech Revolution?
    • Learn: What is the relationship between blockchain and Web3?
    • Learn:Empowering Women in Web 3.0: The Role and Contributions of Women in Blockchain, DeFi, and dApp
    • Learn: Web 3.0 and the Future of E-Commerce
    • Learn: 12 ways ecosystem projects can attract more developers
    • Learn: How Web3 is Impacting Education?
    • Learn: Web3 And The Future Of Digital Advertising
    • Learn: Web3’s impact on personalization, trust and engagement
    • Learn: Web3-Powered Identity Management -- Unlocking the Benefits of Decentralization
    • Learn: Why Web2 companies fail in Web3 while others made it?
    • Learn: To Identify or Not in a Web3 World?
    • 🤫[Insider Series] McKinsey x Web3
    • TL;DR 👀
  • 💲Blockchain Fundamentals
    • Why is Blockchain So Popular?
    • Introduction to Blockchain
    • Blockchain Misconceptions
    • Blockchain vs Bitcoin, Database, Cloud
    • Consensus Mechanism
    • Public and Private Keys
    • Hash Functions and Cryptography
    • Sharding
    • Types of Blockchains: PoW, PoS and Private
    • Understanding Cryptocurrency
    • Coins vs Tokens
    • Blockchain Trilemma
    • Legality
    • Learn : Google’s Cloud Based Blockchain Node Service
    • Learn: How Blockchain, Digital assets, and Web3 Unlock Financial Inclusion Globally
    • Learn: Will Chinese-Made Crypto Soar Higher?
    • Learn: What Does MiCA Mean for Crypto in Europe?
    • Learn: Unraveling the Intricacies of Blockchain Forensics and Asset Tracking
    • Learn: Promising blockchain use cases in healthcare industry
    • Learn: The Role of Blockchain in Authenticating and Provenance Art
    • Learn: Blockchain-Based Digital Identity: Benefits, Risks, and Implementation Challenges
    • Learn: The Future of Energy Supply Chains
    • Learn: Revolutionizing smart contracts and cryptocurrency
    • Learn: Nigeria goes blockchain
    • Learn: A Game Changer for Online Gaming?
    • Learn: Is blockchain technology ready for high-storage applications?
    • Learn: Will Blockchain Technology Mark a Turning Point in Fraud Prevention?
    • Learn: Why ZK-rollups need data availability?
    • Learn: How will generative AI disrupt blockchain?
    • Learn: A New Blockchain for Generative AI?
    • TL;DR 👀
  • 🏟️Web3 Utilities
    • Decentralized Applications (dApps)
    • Cross-chain Bridges
    • DAO
    • Artificial Intelligence
    • Learn: Is Community-building Essential for Web3 Startups?
    • Learn: ‘Decentralization Theater’
    • Learn: Crypto and AI- A yay or nay combination?
    • Learn: Dissecting the DAO
    • Learn: What is motivating Lido DAO to rise?
    • Learn: How to Turn Your Community Into a DAO?
    • Learn: The Key to Decentralized Decision Making
    • Learn: How Web 3.0 can disrupt the supply chain industry?
    • TL;DR 👀
  • 🪙Bitcoin
    • What is Bitcoin
    • Bitcoin's Blockchain Technology
    • UTXO Model and Transaction Fees
    • Bitcoin Mining and Mempool
    • Learn: What is bitcoin mining?
    • What are Hard Forks and Soft Forks
    • What is SegWit and the Lightning Network
    • Bitcoin Ecosystem
    • Can Bitcoin be Destroyed? Game Theory and Network Attacks
    • Learn: Crypto token supplies explained
    • Learn: What is crypto tax-loss harvesting, and how does it work?
    • Learn: Can Crypto Go Green? How to Invest in Eco-Friendly Cryptocurrencies
    • Learn: Why Did FTX Collapse? Here’s What to Know.
    • Learn: How Sam Bankman-Fried swindled $8 billion in customer money?
    • Learn: How much is Bitcoin worth today?
    • Learn: The Costs of Running a Bitcoin Node In Nigeria
    • Learn: Has 2022 Left Any Crypto Positives?
    • Learn: How Crypto Exchanges Can Be Free of Risk?
    • Learn: Greed, Lies and FTX: Is Crypto a Force for Good or Evil?
    • Learn: Is Crypto a Cultural Movement?
    • Learn: What are the consequences of crypto’s ongoing regulatory process?
    • Learn: Beyond the Crash and Embracing NFTs?
    • Learn: Understanding crypto bag holders and their mindset
    • Learn: Inscriptions: Just A Fad, Or A Real Threat To Bitcoin Becoming Decentralized Money?
    • Learn: How Bitcoin Ordinals Can Change the Future Of Mining?
    • Learn: What is a supernet?
    • Learn: Bitcoin Miners Celebrate 10 Years Since First ASIC, What Changed Since Then?
    • Learn: Bill Vs. CBDC – Why This US Congressman Wants To Block The Fed From Issuing A Digital Dollar?
    • Learn: Why Bitcoin Will Blow People’s Minds In 2025?
    • Learn: How the Howey Test Sheds Light on Cryptocurrency's Regulatory Gray Area
    • Learn: Cryptocurrency vs AI: A Complex Debate
    • Learn: Where the U.S. Government Went Wrong in Regulating Crypto?
    • Learn: The Nostr Privacy Paradox
    • Learn: Do algorithmic stablecoins have a future as centralized coins are under scrutiny?
    • Learn: Is Bitcoin Set To Revolutionize The Financial World With Its Superior Purchasing Power?
    • Learn: What is Shibarium, and what does it mean for Shiba Inu?
    • Learn: What is a crypto dusting attack?
    • Learn: Is the Adoption of Central Bank Digital Currencies (CBDCs) the Future?
    • Learn: How Artificial Intelligence Could Revolutionize Crypto?
    • Learn: What’s next for EU’s crypto industry as European Parliament passes MiCA?
    • Learn: Why the EU Has MiCA and the U.S. Has Securities Law Confusion?
    • Learn: Six New Projects Looking to Mitigate Bitcoin Mining’s Energy Footprint
    • Learn: Who on Crypto Twitter chose not to pay for a blue checkmark?
    • Learn: What is the wash-sale rule in Crypto?
    • Learn: What is Pepecoin and can it flip memecoins Dogecoin and Shiba Inu?
    • Learn: Can you recover stolen Bitcoin from crypto scams?
    • Learn: What the ‘anti-mining bill’ means for the crypto industry in Texas?
    • Learn: Does the US have a crypto ‘tax loophole’ problem?
    • Learn: How users can stay protected?
    • Learn: How Crypto Revolutionize Cheaper and Faster Transactions?
    • Learn: Can NFTs and CFDs be BFFs?
    • Learn: A PR expert’s tips for memecoin projects
    • Learn: Why politicians aren't convinced about the Digital Euro?
    • Learn: How A 90-Year Old TA Theory Predicted The Sudden Bitcoin Boom?
    • Learn: Social Trading Platforms and CFDs: A New Paradigm in Investment
    • Learn: How could the Chinese economic crisis impact Bitcoin and crypto?
    • Learn: How do they compare: Bitcoin IRA vs. traditional IRA?
    • Learn: Why Tokenized Assets Are Safer During a Banking Crisis?
    • TL;DR 👀
  • 🛢️Ethereum
    • Bitcoin vs Ethereum
    • What can Ethereum do?
    • What is Ether (ETH)?
    • What's Unique About ETH?
    • What are Smart Contracts?
    • Energy Consumption?
    • Ethereum Virtual Machine (EVM)
    • Pros & Cons of Smart Contracts
    • Decentralized Applications (dApps)
    • Ethereum Token Standards (ERC-20, ERC-721 and ERC-1155)
    • Evolution of Ethereum
    • How to Get Your First Ethereum
    • Learn: Next Ethereum Upgrade — Shanghai Upgrade
    • Learn: Tipping Scale for Crypto Adoption: Usability vs. Accessibility
    • Learn: Major Publicly Traded U.S. Bitcoin Miner Files For Chapter 11 – Impact On The Market?
    • Learn: 5 altcoin projects that made a real difference in 2022
    • Learn: How Tether Can Be a More Stable Stablecoin?
    • Learn: Are the Ethereum Killers Still Deadly?
    • Learn: What Ethereum Tech Trends Are Weathering the Bear Market?
    • Learn: How Ethereum’s token burns are making it a deflationary cryptocurrency?
    • Learn: A few things to know about Ethereum's Shanghai Upgrade
    • Learn: The Role of Enterprise Ethereum
    • Learn: Understanding Layer 2 Scaling Solutions for the Ethereum Network
    • Learn: The Battle of Giants: Bitcoin vs Ethereum
    • Learn: Cryptography, Smart Contracts and Distributed Networks
    • Learn: The Memecoin Grift and How It Threatens Ethereum Culture
    • Learn: What Is Ethereum’s ‘Data Availability' Problem, and Why Does It Matter?
    • TL;DR 👀
  • 👛Wallet
    • What is a Blockchain Wallet?
    • Hardware / Software Wallet
    • How to Get Your First Cryptocurrency
    • Setting up Metamask Wallet
    • Learn: How to connect the Avalanche network to MetaMask?
    • Learn: How to pass on your crypto when you die?
    • Learn: What are hierarchical deterministic (HD) crypto wallets?
    • Learn: Pros and Cons of Digital Wallets
    • Learn : How Web 3.0 Wallets Are Redefining Digital Asset Security?
    • Learn: Open source: Buzzword or real security for crypto wallets?
    • TL;DR 👀
  • 🌕New & Rising Protocols
    • Binance
    • NEAR
    • Solana
    • Fantom
    • Polygon
    • Cardano
    • Polkadot
    • Cosmos
    • Harmony
    • Cronos
    • Optimism
    • Terra
    • Who Will Win the L1 Wars?
    • Learn: New Layer 1 Blockchains Are Expanding the DeFi Ecosystem But No Eth Killers Yet
    • Learn: Is an Increased Focus on Layer-2 Scaling and ZK Technology Justified?
    • Learn: What Are the Stakes in the SEC vs. Ripple Case?
    • Learn: What is The Graph, and how does it work?
    • TL;DR 👀
  • 📈Decentralized Finance (DeFi)
    • CEX vs DEX
    • CeFi vs DeFi
    • Algorithmic Stablecoins
    • Airdrop
    • Liquidity Pool
    • Impermanent Loss
    • Swapping
    • Wrapped Token
    • Arbitrage Opportunities
    • Staking
    • Yield Farming
    • Total Value Locked (TVL)
    • Gas Fees
    • Lending & Borrowing
    • Useful Tools
    • Activity: Uniswap & Pancake Swap
    • Learn: Automated Market Makers (AMMs) in DeFi
    • Learn: Crypto Moving towards ESG: What Is Regenerative Finance (ReFi)
    • Learn: What Is dYdX? Understanding the Decentralized Crypto Exchange
    • Learn: It's A Wrap - DeFi in 2022
    • Learn: Why DeFi should expect more hacks this year?
    • Learn: The Security Challenges of DeFi
    • Learn: The Promising Future of Decentralized Social Media on Web 3.0
    • Learn: Can CBDCs, Tokenized Deposits, Stablecoins and DeFi Coexist?
    • Learn: The Increasing Popularity of DeFi and Its Potential to Disrupt Traditional Finance
    • Learn: The future of DeFi is ReFi
    • Learn: DeFi aggregation
    • TL;DR 👀
  • 🙈Non-Fungible Token (NFT)
    • What are NFTs?
    • Case Study
    • Storage
    • Who are the Players?
    • NFT Marketplace
    • NFT Useful Resources
    • Activity: Mint Your Own NFT
    • Learn: How You Can Prevent Hackers From Stealing Your NFTs?
    • Learn: What Is an NFT Floor Price?
    • Learn: Should Bored Ape buyers be legally entitled to refunds?
    • Learn: China’s view of NFTs different from rest of the world’s
    • Learn: NFTs IRL: How Digital Collectibles Are Forging Offline Experiences
    • Learn: How NFT Brands Can Cut Through The Noise
    • Learn: How Web3 disrupts the music sector?
    • Learn: Unlockable content in NFTs
    • Learn: Why Meta Matters in NFTs?
    • Learn: Should NFT Marketplaces Become Centralized?
    • Learn: Hermès vs. MetaBirkins: The NFT Case That Could Have Major Trademark and Artistic Consequence
    • Learn: What are phygital NFTs, and how do they work?
    • Learn: What is NFT ticketing and how does it work?
    • Learn: Why Solana NFT marketplace is seeing less active users?
    • Learn: NFTs and Intellectual Property
    • Learn: How AI Is Changing Artistic Creation and Challenging IP Laws?
    • Learn: The Future of NFTs: Exploring Dynamic NFTs and Their Versatile Use Cases
    • Learn: NFTs in the event and ticketing industry
    • Learn: What is NFT rarity, and how to calculate it?
    • Learn: What happens to your NFTs when you die?
    • Learn: Dogecoin-Like Spike in Milady NFTs After Elon Musk’s Tweet, But Will It Last?
    • Learn: What are NFT royalties, and how do they work?
    • Learn: How developers aim to store crypto inside NFTs?
    • Learn: Generative Art NFTs: What Are They & Why Are They So Popular?
    • TL;DR 👀
  • 💗Metaverse
    • What is the Metaverse?
    • Metaverse Economy
    • Metaverse Companies
    • GameFi
    • Learn: Are We in the Metaverse Yet?
    • Learn: Can the Metaverse exist without blockchain?
    • Learn: Can the Metaverse Facilitate Sustainable Growth of Defi Systems?
    • Learn: What is the role of biometrics in the metaverse?
    • Learn: Can metaverse be the future court?
    • Learn: Metaverse Fashion Is on the Rise, but for Whom?
    • Learn: Sustainability in the Metaverse: Challenges and Opportunities
    • Learn: How To Build A Responsible Metaverse?
    • Learn: What is a VTuber, and how do you become one?
    • Learn: How proof-of-identity provides human experiences?
    • Learn: The “Metaverse” Next Frontier for Business: Impact And Challenges
    • Learn: The 5 Biggest Misconceptions About The Metaverse
    • Learn: Why culture and ownership are critical to the metaverse?
    • TL;DR 👀
  • 👾Career in Web3 (coming soon)
    • Developers
    • Moderators
    • Community Managers
    • UI/ UX Designers
    • Digital Fashion Designers
  • 🌱Sustainability (Coming Soon)
    • Industry Effort
    • Co-author
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On this page
  • What is Fantom?
  • Fantom Network structure
  • Fantom blockchain mainnet: Opera
  • Fantom staking, FTM token and DeFi suite
  • What's so special about Fantom?
  • Who’s building on Fantom?
  • The future of FTM
  1. New & Rising Protocols

Fantom

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Last updated 2 years ago

What is Fantom?

Fantom Network structure

While independent Fantom nodes will occasionally communicate with one another about transactions and events, they do not confirm finalized blocks or the overall state of the network. This architecture results in a system that processes transactions quickly and achieves finality within seconds. Fantom stresses that its PoS mechanism is leaderless, which means there are no block leaders and no participants have a special role in its operation. Anyone can join or leave the node network at any point, and all nodes hold equal weight in the consensus protocol.

Fantom blockchain mainnet: Opera

To provide scalability to the whole ecosystem and avoid network congestion, applications built on Fantom effectively use their own independent blockchains. Because each dApp gets its own blockchain, each can be configured to meet its particular needs. Tokenization, tokenomics and governance are all modular pieces to the puzzle that can be customized by each dApp as needed without affecting the underlying structure of Fantom’s Lachesis consensus layer.

However, each independent dApp blockchain remains plugged into the Lachesis PoS consensus protocol, and thus benefits from its underlying speed and security. With Lachesis as the common thread tying these independent blockchains together, all Fantom dApps benefit from inherent interoperability, and can easily communicate with one another. With these features in mind, Fantom is working to make a case for why dApp developers should make the switch from Ethereum to Fantom.

Fantom staking, FTM token and DeFi suite

Fantom’s native utility token — FTM — powers the entire Fantom blockchain ecosystem. FTM tokens are used for staking, governance, payments, and fees on the network.

Anyone can participate in Fantom staking with a minimum stake of 1 FTM by moving their FTM to a Fantom wallet address. When doing so, ERC-20 FTM tokens and BEP-2 FTM tokens will automatically be swapped for Opera FTM coins. Also, to operate a validator node on Fantom’s permissionless network, validators must stake at least 3,125,000 FTM.

  • fUSD: a Fantom-based stablecoin that’s pegged to the U.S. dollar

  • fSwap: a synthetic asset decentralized trading platform

  • fLend: a liquidity pool from which users can lend or borrow

Fantom’s approach to the DeFi and dApp landscape is innovative — as is the structure of its staking reward program. Further proposed use cases for Fantom’s highly scalable smart contract platform are dApps related to supply chain management, payments and smart city programs, although its permissionless nature means its actual use cases will likely far exceed these prescribed categories.

With its first-of-kind complex and unique infrastructure, Fantom’s approach to fast, scalable dApp development is still establishing its place in the wider blockchain ecosystem.

What's so special about Fantom?

Some developers, like those building Loopring, Abritrum and Optimism, opted to build layer-2, or L2, solutions to speed up the Ethereum experience without getting rid of Ethereum’s security.

Who’s building on Fantom?

The future of FTM

The future of FTM will be determined by the victor of the L1 wars. Right now, Ethereum is losing ground to emergent rival Layer 1 blockchains, like Solana, Fantom and Avalanche.

Time will tell whether the crypto industry becomes a winner-takes-all market where a single blockchain dominates, or if crypto will indulge in a multi-chain future where blockchains become application-specific.

Source

Fantom is a decentralized, and open-source smart contract platform for and digital assets — one of many blockchain networks built to provide an alternative to . The Fantom blockchain mainnet went live in December 2019 and its network architecture intends to provide a viable solution to the by providing a steady balance of scalability, security, and decentralization.

Like other Ethereum alternatives, Fantom intends to provide more scalability and lower costs than the legacy first-mover smart contract platform is able to provide in its iteration. A unique element of the Fantom crypto platform is that users can create and deploy their own independent networks instead of relying solely on Fantom’s main consensus layer.

Each application built on Fantom operates on its own unique blockchain. While operating on its own blockchain, each Fantom dApp also enjoys the security, speed and of the parent Fantom blockchain. Further, independent blockchains are modular in structure, which allows developers to configure them to their particular project’s use case.

Fantom Network is best conceptualized as a parent network composed of individual child networks that host dApps of all shapes and sizes. Fantom’s infrastructure is tied together through its consensus mechanism, which maintains the operational efficiency of the entire network. The aBFT network structure is designed to preserve network security while maximizing speed.

Fantom operates atop a bespoke "leaderless” PoS consensus mechanism dubbed '' that secures the Fantom Network and ensures both transactional speed and security. Lachesis is an aBFT consensus mechanism, which means that network data can be processed at different times, and the network can tolerate as much as one-third of participants engaging in faulty or malicious behavior without causing undue harm to network processes.

Lachesis also boasts near-instant finality. This means that are confirmed and finalized within only a few seconds, without the need to wait for laborious block confirmation as experienced in networks. By avoiding the relatively lengthy block confirmation process, this aBFT system is much faster and more scalable than many of its counterparts.

Diving deeper into how Fantom’s Lachesis functions, we see how each network node contains its own , which records the chronology of 'event blocks' and respective transactions, with each node achieving internal consensus independently. Confirmed batches of event blocks are then compiled into finalized blocks that are confirmed on the wider Fantom network. Finalized blocks, which form the base layer Fantom blockchain, are composed of confirmed event blocks from the independent nodes.

The Lachesis consensus apparatus servers power Fantom’s mainnet deployment platform — — which hosts dApps operating on the network. Opera is a and open-source environment for development that boasts the full range of smart contract capabilities that Ethereum has due to its support of the Solidity programming language and integration with the . Applications built on Fantom can be designed to be interoperable with platforms built on Ethereum, while still maintaining the transactional efficiency of the Fantom network.

A proprietary known as the will eventually be released for native Fantom-based development alongside continued support for the EVM — a strategy meant to entice Ethereum-based dApp developers to make an easy transition to building applications on Fantom.

There is a total supply of 3.175 billion FTM coins, with 2.5 billion in circulation as of September 2022 The remainder will be distributed as Fantom staking rewards. FTM is available as a native mainnet coin, an in the Ethereum ecosystem and a in the Binance ecosystem.

Fantom provides a fairly dynamic and lucrative staking structure for users. Users can stake their FTM at-will with a validator node for a 4% staking reward, which is a common staking model. However, users can also take advantage of Fantom’s Fluid Rewards by choosing to lock up FTM for a predetermined time — ranging from two weeks to a year — to secure higher reward rates of as much as 12% APY.

Fantom also employs a feature called , whereby stakers can mint sFTM at a 1:1 ratio to their staked FTM to be used as collateral in Fantom Finance — a suite of DeFi apps provided by Fantom — thus allowing users to get more use out of their staked FTM. Some of the DeFi offerings that Fantom provides include:

Fantom’s success is best understood in the context of the so-called L1 wars. Ethereum is slow and expensive to use, and will remain so (assuming activity remains the same) until to the protocol are implemented. That could take a couple of years. This is too late for people who want to make the most of decentralized finance protocols today, but who find ETH native DeFi apps too expensive to use.

Other blockchains decided to replace Ethereum entirely — Ethereum is known as the base layer, L1 or layer 1. Solana, Avalanche, and Fantom are the leading horses in this race.

💸 : allows for synthetic minting, liquid staking, decentralized lending and trading.

🧙‍♀️ : A decentralized automatic market maker. Think Uniswap but on Fantom. Its token, amusingly, has the ticker “BOO”.

⛓️ : a cross-chain router protocol.

💱 : A decentralized exchange with little slippage. Solidly was created by Andre Cronje, the inventor of Yearn Finance. It operates on a (3,3) model, like OlypmusDAO.

👻 : A decentralized lending protocol.

🌕
permissionless
decentralized applications (dApps)
Ethereum
Blockchain Trilemma
Ethereum 1.0
finality
Asynchronous Byzantine Fault Tolerant (aBFT)
proof-of-stake (PoS)
Lachesis
transactions
proof-of-work (PoW)
Byzantine Fault Tolerant (BFT)
Directed Acyclic Graph (DAG)
Opera
permissionless
Ethereum Virtual Machine (EVM)
software development kit (SDK)
Fantom Virtual Machine
ERC-20 token
BEP-2 token
annual percentage yield (APY)
Liquid Staking
upgrades
Polkadot
Fantom Finance
SpookySwap
Multichain
Solidly
Geist Finance
Gemini
Fantom
Decrypt