If you’re looking for a new(ish) project in the world of cryptocurrency that has grand ambitions, consider Fantom (FTM) coin. This coin is creating a smart contract network which will be the backbone for smart cities.
By using its advanced Directed Acyclic Graph, or DAG, technology, Fantom wants to create a way for infinite scalability and almost instant transactions which come with a minimal cost. The project is also developing a high-powered virtual machine that offers secure and safe smart contracts.
The question is, can this project really achieve such lofty aims? And if they can, how do they plan to do so?
For the answer to these questions and more, read our Fantom coin review. We’ll tell you all you need to know about this project. How it works, the use of its tokens, and its leadership team.
What is Fantom?
Fantom uses distributed ledger technology to create and develop a DAG-based platform. This platform will be used to supply energy to smart cities and all the services of which it is composed. With it, Fantom wants to incorporate original methods of scalability, along with the ability to execute smart contracts securely and safely.
With its incredibly fast and high-performance network, this project believes it has the capability to become the IT backbone for smart cities as they begin to grow and develop. Fantom is creating a platform that will complete 300,000 transactions every second, plus has the ability to interact across several different service providers. As a result, the project believes it has the solution necessary to store an immense amount of data securely and safely.
It plans on achieving these lofty goals by being available to stakeholders both decentralized application (dApp) adoption, along with smart city smart contracts driven by massive amounts of data. Fantom sees its platform being used throughout a wide variety of markets and industries, including smart home networks, public utilities, healthcare, traffic control, environmental sustainability, and education.
How Does Fantom Work?
The Fantom project has its protocol architecture split up into three separate layers. Each layer has a distinct set of duties for which it is responsible. Fantom has defined these layers as the Opera Core Layer, Opera Ware Layer, and the Application Layer.
Let’s look closer at each of the layers in the Fantom architecture, along with how they behave and what they do for the protocol.
Opera Core Layer
The Opera Core is the bottom layer of the platform. Its primary responsibility is maintaining consensus throughout the nodes in the protocol. Additionally, this layer is responsible for event creation. Through the use of a DAG, it confirms transactions, while the nodes process them.
Every transaction that is confirmed is retained on each node in the platform, similar to what you expect from a blockchain. Even though the DAG technology doesn’t require that every transaction be saved on each node, Fantom does so anyway.
Fantom also uses a second node, which it refers to as a witness node. This node is used to confirm and validate transactions. Witness nodes are in place to check the validity of data stored by all nodes throughout the Fantom network. The witness nodes use Delegated Proof of Stake (DPoS) as its consensus algorithm to elect nodes used for validation purposes.
Opera Ware Layer
The middle layer of the protocol is called the Opera Ware layer. This layer’s responsibilities include issuing payments and rewards, as well as executing other functions on the network.
Opera Application Layer
Sitting at the top of the Opera architecture is the Application layer, which holds the APIs which are available to the public. Developers use these APIs to give their decentralized applications the ability to interact with Fantom’s Opera Ware layer. One interaction is particularly interesting. Fantom refers to it as its “Story Data.”
This Story Data is how Fantom manages and tracks all transactions which have occurred in the past. By comparison, Ethereum has limitations when it comes to keeping tracking of past transactions. With the Fantom network, every transaction and smart contract executed stores a minuscule piece of information, called the Story Data, which the project uses for tracking past transactions.
The functionality is very valuable in markets where storing records indefinitely are essential to business. For example, both the healthcare and supply-chain management industries are two markets which would benefit greatly from this type of technology.
Who are Fantom?
Fantom has a large development team, which is lead by a staff of 11 members, plus 8 resources in advisory roles. Outside of the core foundational members, Fantom has a team of 16 developers who contribute on a regular basis to the project.
Dr. Ahn Byung Ik is the founder and CEO of Fantom. He brings a Ph.D. in computer science to the table, along with experience as the president of the Korean Food-Tech Association. It’s no secret that Dr. Ahn has plenty of success in the start-up world, as he founded a service company called Point-I in 1998 and another business, SikSin, in 2010.
Fantom’s Chief Information Officer is Michael Kong, who comes to the team with several years of blockchain experience. He brings knowledge of smart contract development which served him well in his position as CTO for Block8, a blockchain incubator.
The remaining members of the Fantom team are comprised of many highly successful, experienced, and motivated individuals. Their diverse background includes areas such as finance, business development, cryptography, software engineering, and architecture.
In addition to a leadership staff with plenty of digital asset experience, Fantom also boasts excellent advisors. These include Steve Bellotti, Digital Currency Holdings COO, Cho Min Sik, Kakao board member, and Kim Hyeong Joo, the current Korean Blockchain Association president.
Fantom Token (FTM) and ICO
The Fantom token (FTM) is an ERC-20 based digital asset, used primarily for staking and rewarding Fantom witness nodes. Fantom also plans to use its FTM tokens as a way to appeal to users and contributors on the Fantom network.
Fantom’s ICO was held in June 2018. At the time, the project sold 40% of its total supply of FTM tokens. These 3,175,000,000 tokens were priced at $0.04305 each, raising nearly $40 million during the ICO period.
Unfortunately, Fantom took a few months to distribute its tokens. By that time, the market was deep into its bear cycle. As a result, the initial price of the FTM token hovered around $0.02 each, which was essentially half the price at the ICO.
Since all cryptocurrencies were struggling during ‘crypto winter,’ the price of FTM dropped even lower. On the 4th of February, Fantom coin reached its all-time low, dropping to $0.003105. Since that time, FTM has shown significant recovery, increasing more than 2005 over the following months.
Purchasing and Storing Fantom Coin
Fantom is available for purchase on several different exchanges, including KuCoin, BitMax, and Binance. However, the most significant trading volume for FTM takes place on the Binance platform.
After you buy your FTM tokens, you should move them from the exchange and over to a secure digital wallet. With the launch of its BEP-2 tokens, FTM now has two types of tokens. That means you’ll need to know which one you’re buying so you can move them to the appropriate wallet.
The ERC-20 is the older of the two, however, it is still the most prevalent. As a result, you can keep those in any ERC-20 wallet, like MetaMask or MyEtherWallet. BEP-2 tokens, on the other hand, must be kept in a Binance chain wallet. You’ll have to create this wallet before you can covert the ERC-20 assets over to BEP-2 tokens.
Strengths and Opportunities
Fantom has done an excellent job of laying out plans for capturing market share. Its website shows many partners and relationships, including the South Korea Food-Tech Association, of which Dr. Ahn is the president. However, that means Fantom has a partnership with a company that leads a 200 billion dollar industry.
With his extensive experience in both the technology and food sectors, Dr. Ahn is leading Fantom down a path that allows them to build their environment with decentralized applications for several markets. These include delivery services, food reservations, and supply-chain management.
As a result, the team has expressed interest in leverage partnerships with the Food-Tech Association. This includes promoting its product to street vendors and retailers as a way to reduce costs associated with card and transaction fees. However, at this time, no system has been implemented.
With its DAG-based protocols, Fantom provides a scalability method that has been known to work while attracting potential investors. Projects like Nano, IOTA, Byteball, and others have all seen substantial returns on their ICOs due to the use of DAG technology.
One of the biggest value-adds that Fantom offers its investors and users is its integration of decentralized applications and smart contracts. Previous projects like Nano and IOTA did not offer this type of technology and have not yet integrated them into their own products. However, the past success of DAG-based projects gives reason to be confident in the future of the Fantom project.
Weaknesses and Threats
Two of the biggest threats to the Fantom project come in the form of other DAG protocol projects like Constellation and Hedera. Both of these options deploy architectures that are similar to Fantom in that they integrate smart contract capabilities into their platform.
Another problem the platform faces is the potential that they may not be able to maintain a firm grasp on their domestic market. As the project continues to progress, it is worth watching. How will Fantom respond to competitors and how will it drive adoptions from an enterprise perspective?
The biggest roadblock in the Fantom project is its lack of enterprise partnerships or clients. While many have been rumored, nothing official has been announced. Having an enterprise partner is crucial to Fantom’s scaling methodology. Developments in this area of the project are critical and need to occur sooner rather than later.
Is it Worth it to Invest in Fantom?
When it comes to Fantom coin, it’s important to remember that it is not the only project that makes use of DAG technology for scalability purposes. Both Nano and IOTA were some of the first projects to use DAG. Plus, we mentioned how both Hedera and Constellation are using an architecture that is similar to what Fantom is using by integrating smart contracts.
The appeal of Fantom is that it plans on adding value through its infrastructure by supporting decentralized applications and smart contracts. This gives Fantom an advantage over other projects like Nano and IOTA that didn’t launch with this type of functionality. However, the success of IOTA’s implementation of smart contracts gives investors hope that Fantom will see the same type of return.
There is also the potential for Fantom to take control of the market in regards to smart cities as they begin to grow and develop in South Korea. This isn’t necessarily a guarantee, as Fantom still needs to show significant progress and show investors that it can deliver on its timeline and roadmap. If the project can do so, it should have no problem retaining its hold on the market in South Korea.
Another appealing feature of the Fantom project is its ability to process high rates of transactions every second. That and the low fees associated with the platform are resulting in increasing adoption across several markets as it pushes closer toward enterprise integration.
With all that in mind, the Fantom team appears to have the experience, knowledge, and expertise necessary to become successful. It has plenty of connections within its industry, which should help them maintain a tight hold on the South Korean market. From our perspective, Fantom is definitely a project worth watching for the foreseeable future.