Perhaps the real elegance and beauty of blockchain technology lies in the manner in which its smart contracts are implemented to develop more secure, reliable, and advanced DApps (Decentralized Applications) and financial solutions. Fantom deserves a mention in such discussions. Let us do a deep dive of the platform today.
Fantom: Introduction and Purpose
Fantom operates as a single, but multipurpose platform that caters to several blockchain uses and solutions. It is also one of the many, operational blockchain networks that is built to provide an alternative to the Ethereum network, with Fantom mainnet having gone live in December 2019. Its network structure intends to give a steady balance of security, scalability, and decentralization to users.
Fantomâ€™s architecture consists of its aBFT (Asynchronous Byzantine Fault Tolerant) PoS (Proof of Stake) consensus mechanism that maintains the efficiency of all operations in the network and is designed to preserve network security while also maximizing speed. The architecture allows the Fantom network to work even if up to a third of its participants are compromised or acting maliciously. Nodes also perform their own consensus, and the final results are then compiled by the network.
The native utility token of Fantom, FTM, powers the Fantom network and is used for payments, fees, staking, and governance in its ecosystem. It has a maximum supply of 3.175 billion FTM coins, with more than 2.5 billion already in circulation. The remainder is set to be distributed as staking rewards by Fantom.
FTM currently ranks among the top 30 cryptocurrencies in the world with a price tag of around $2.25 per token, with more than $5 billion market capitalization.
Short term technical analysis
FTM started 2021 with a price tag of less than $0.02 and hit an all-time high of $3.48 in October 2021, delivering to early investors and traders windfall gains on their investments. In its most recent run, FTM rose from $1.18 to $3.15 again, rejecting after a double top formation that sent it crashing to the 0.5 fibonacci retracement of the rise at $2.15. It has now overcome resistance at $2.39 and must hold this level on the longer time frames to see $2.68 and higher.
Source: TradingView, Binance
FTM has also formed a cup and handle formation, so the current dip can be perceived as the handle, post which FTM could potentially rally to $4 or higher.
Fantomâ€™s approach to the DApps and DeFi landscape is fast, scalable, and innovative, with the main focus of solving the blockchain trilemma, that is, providing a balance between speed, decentralization, and security.
With its staking reward program structure and unique infrastructure, Fantom is pivoted to establish its place in the wider crypto and blockchain ecosystem and provide head-to-head competition to other similar alternatives with its speed and interoperability benefits.
Disclaimer: This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.