FTM bulls have been snapping up the DeFi platform’s utility token, fueling its mid-Jan. 2023 breakout above a long-term downtrend.
FTM/USD Hourly Trading Chart Source: TradingView
The token is currently up almost 24% on the day to about 62 cents as excitement builds around the project’s 2023 plans.
Fantom’s Quick Transaction Finality Improves Developer Experience
Fantom’s Lachesis asynchronous Byzantine fault-tolerant consensus mechanism finalizes transactions almost instantly and allows for synchronous RPC calls.
Cronje stresses that this experience is superior compared to proof-work blockchains. Developers in blockchain ecosystems with slow block confirmation times must poll the RPC for answers, hurting developers and user experience.
Fantom’s transaction finality also avoids the consensus problem encountered in proof-of-work chains where all nodes do not have the same perspective of the blockchain’s state. In a PoW chain, if two miners confirm two blocks within a short period, the second block may arrive at a node shortly after the first block. The node connects the second block to a secondary chain, resulting in two perspectives of the blockchain’s state. Over time, only one of these chains will become the main chain and confirm transaction finality. On Fantom, miners do not have to append multiple confirmed blocks to confirm a transaction’s finality.
The Yearn Finance founder noted that in Q2 and Q3 of 2023, Fantom developers could subsidize their users’ gas, a fee charged for executing transactions on the blockchain. This cost-reduction mechanism will reduce the barrier to entry for new users. Users can onboard using social logins instead of mnemonics and private keys.
Regarding funding, developers can create votable proposals to access funds from the Fantom Ecosystem Vault. Fifteen percent of all gas fees from smart contract transactions are part of the developer revenue share. Additionally, developers can access quadratic funding via Gitcoin. Quadratic funding uses a formula to allocate funds from a pool mainly to open-source projects with many or poor contributors.
Fantom will also host small, accessible hackathons in 2023 to broaden and strengthen the developer pool.
TVL Down 93% from ATH
Fantom is a smart contract blockchain with lower transaction costs than Ethereum. App developers can deploy their child networks customized for a specific use case while benefiting from the security and speed of the main chain, and each dApp can create its own tokenomics system. Additionally, applications written for the Ethereum Virtual Machine can benefit from Fantom’s quick transaction finality.
Fantom’s FTM token can be issued as an ERC-20 token on Ethereum and a BEP-20 token on the Binance Smart Chain. FTM holders can stake their tokens with a validator node by moving them to a Fantom wallet, where they can earn up to a 4% yield. Node operators must stake a minimum of 3,125,000 FTM tokens.
At press time, there is $590 million in total value locked on Fantom, down almost 93% from an all-time high of $8.1 billion in March 2022.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.