Why Fantom (FTM) Is A Good Cryptocurrency to Invest In
Fantom is one of the fastest and cheapest blockchains to use and it’s ecosystem is growing rapidly. Serious investors should be paying attention to Fantom and it’s FTM token.
In this post we’ll look at why Fantom (FTM) is a good cryptocurrency investment, how to buy Fantom (FTM) and price predictions.
What is Fantom (FTM)?
Fantom is a decentralized, open-source smart contract platform for decentralized applications (dApps) and digital assets.
As an alternative blockchain to Ethereum, Fantom aims to provide more scalability and lower costs. On Fantom, money transfers take around 1 second and cost around $0.0000001.
Fantom has also been described as a DAG (Directed Acyclic Graph) based smart contract platform.
Fantom uses an Asynchronous Byzantine Fault Tolerant (aBFT), Proof-of-Stake (PoS) protocol to secure the entire network.
Asynchronous Byzantine Fault Tolerance (aBFT) is a mechanism that enables a decentralized, trustless network to function even in the presence of malfunctioning or malicious nodes.
Fantom’s mainnet went live in December 2019, and the network aims to provide a good balance between scalability, security, and decentralization.
Fantom had it’s token sale on 15th & 16th of June, selling it’s token FTM for $0.043. The price of FTM is currently $2.44, so that’s a 55x return for early investors.
If you want to learn more about Asynchronous Byzantine Fault Tolerance (aBFT), read the next few paragraphs. If not, go straight ahead to the next section “Fantoms FTM Token”.
What is Asynchronous Byzantine Fault Tolerance?
Before we can understand Asynchronous Byzantine Fault Tolerance, we need to understand how Byzantine Fault Tolerance works. Byzantine Fault Tolerance is described using a hypothetical scenario named the “Byzantine General’s Problem”.
Four Byzantine Generals plan to attack a city. Each of these generals and their armies are occupying a different side of the city, so they are separated from each other. This makes direct, coordinated communication impossible.
In order to plan an attack or retreat, they need to send out their own messengers to share their plans with each other.
But there are serious issues with the trustworthiness of this approach:
- What if any of the messengers are captured and replaced with enemy messengers?
- What if one or two of the generals are traitors and they send messengers with information meant to misinform?
- What if one or two of the messengers themselves are traitors and intentionally spread false information?
It becomes clear that there is a trust issue here.
How can these generals come to a consensus (total agreement) on whether to attack or retreat from the city they are surrounding?
Byzantine fault tolerance is a solution to this problem and it ensures that you can trust that the network is going to act fairly.
Byzantine Fault Tolerance is when nodes in a decentralized network are guaranteed to agree on the timing and order of transactions.
Nodes will come to an honest consensus, even if there are nodes maliciously trying to prevent that consensus (even as much as 1/3) by delaying transactions or other means.
This is the “fault tolerance” of the network, in other words, how many nodes the network can tolerate acting maliciously, whilst still being able to come to an honest consensus.
Asynchronous Byzantine Fault Tolerance (aBFT) improves on Byzantine fault tolerance, by overcoming one of it’s main challenges which is timing.
Many forms of Byzantine fault tolerance assume there is a maximum threshold of message latency when coming to a consensus. This means that many BFT systems place an upper time limit on receiving messages.
An aBFT network removes this assumption by allowing some messages to be lost or delayed infinitely, whilst assuming that an honest node’s messages will get through eventually.
Since the time limit is removed, it’s assumed that messages from honest nodes will always be found.
This is a very complex topic but you can learn more about the topic here.
Fantoms FTM Token
Fantom has its own cryptocurrency called FTM and it works in the following ways:
- Staking – Users stake FTM to secure the network. In return they earn additional FTM as a passive income.
- Payments – FTM is used for sending payments on the Fantom network. Money transfers on Fantom take 1 second and cost $0.0000001.
- On-chain Governance – Users can vote on proposed changes and improvements by staking their FTM. The FTM you stake, the more voting power you get.
- Network fees – FTM is used for network fees, such as transaction fees and fees to deploy smart contracts or to create new networks.
How Does Fantom Work?
Fantom uses a custom made “leaderless” PoS consensus protocol named “Lachesis” to secure the Fantom network and ensure fast transaction speeds and high security.
Lachesis is an Asynchronous Byzantine Fault Tolerant (aBFT) consensus mechanism, meaning that network data can be processed at different times.
Due it’s aBFT mechanism it can always ensure an honest consensus, even with up to one third of nodes engaging in faulty or malicious behaviour.
Lachesis is the technology which provides the Fantom network with near-instant finality. This means that on average, transactions on Fantom are confirmed and completed within one second.
Fantoms Lachesis protocol, which uses the aBFT mechanism, makes it faster and much more scalable than many of its Byzantine Fault Tolerant (BFT) counterparts.
Each Fantom network node also contains its own DAG which record their own event blocks and respective transactions. Confirmed batches of event blocks are bundled into finalized blocks and confirmed on the main Fantom network.
The Lachesis protocol powers Fantoms mainnet platform called “Opera”, which is where Fantom compatible dApps will be deployed and hosted.
Opera is an open source, Ethereum Virtual Machine (EVM) compatible platform with smart contract support via Solidity (Ethereum’s coding language) and the EVM.
Due to Opera being EVM compatible, applications built on Fantom can be designed to work with Ethereum based platforms, whilst still benefiting from Fantoms instant speeds and low fees.
Fantom is planning to release a software development kit (SDK) called the Fantom Virtual Machine (FVM) for the development of native, Fantom based applications.
Whilst the Fantom Virtual Machine will be available to developers, they will continue to support the EVM.
This will make it easier for Ethereum developers to eventually transition over to building applications on the Fantom blockchain.
Why Fantom (FTM) Is A Good Investment
Fantom (FTM) is a good investment for many reasons:
- Fantom has a growing ecosystem which includes Defi, NFT’s, DEX’s and more
- The team behind Fantom have partnered with Binance to create a centralized exchange for Fantom based tokens
- Fantom is one of the fastest and cheapest blockchains to use
- Fantom is a fast growing blockchain platform that has seen rapid adoption by users
Fantom (FTM) is a cryptocurrency that should be considered by any serious investor as it has all the right components for a successful blockchain platform. Below I’ll go into more detail.
Fantom have partnered with Binance to build their own exchange
During the 2021 Fantom Developer Conference in Dubai, it was revealed that Fantom is creating a native cryptocurrency exchange powered by the Binance Cloud.
This was announced by Harry Yeh, the Founder and Managing Partner of Quantum Fintech Group, one of the most-trusted cryptocurrency hedge funds for high-net worth investors.
According to Harry Yeh, this exchange will enable better limit orders for Fantom based assets, better liquidity and the use of ‘high-frequency trading’ (HFT) and bots for a better trading experience.
Fantom’s exchange will be a centralized platform like Kucoin and Binance, meaning that it will be easier to buy and trade cryptocurrency, unlike using a DEX which can be a bit complicated for some people.
Upon release, the following Fantom cryptocurrencies will be supported on the Fantom exchange:
- SpookySwap (BOO)
- Spirit Swap
- Tomb, Tshare, Tbond
It can be assumed that FTM will be a main trading pair for every cryptocurrency that is traded on Fantom’s exchange. This will increase its demand and value, which in turn will increase the price of FTM.
Fantom is one of the few projects creating their own centralized exchange, which will help in making FTM a blue chip cryptocurrency for investors.
Fantom grew from $0.022 to a peak of $3 in 2021 which is over a 136x return for investors in only one year.
Here’s how much you would have made investing in Fantom (FTM) in only one year:
- $5,000 invested in Fantom (FTM) would have made you $680,000 in only one year
- $10,000 invested in Fantom (FTM) would have made you a millionaire, with a $1.36 million return in only one year
- $25,000 invested in Fantom (FTM) would have made you $3.4 million in only one year
Fantom (FTM) Price Prediction
The FTM is currently floating around $2.50 and with a marketcap of $6.9 billion, Fantom (FTM) can definitely reach $22.50 in the long term, which is a 10x price increase.
In the short term, it’s very possible Fantom (FTM) will reach $10, likely within a year or two.
How to Buy Fantom (FTM)?
You’ll see more information about each exchange below:
Kucoin – One of the best exchanges where you can buy FTM and other cryptocurrencies directly with cash. This exchange is available for all users from any country in the world including the USA.
Bitpanda – If you live anywhere in Europe, this is the best exchange where you can buy FTM and other cryptocurrencies with cash due to their large selection of tokens. This exchange is only available to people who live in Europe for now.
If you have any questions or would like to see certain subjects mentioned in this guide or future articles, leave a comment in the section below.
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