Ethereum being the second-largest coin after Bitcoin has some design limitations as more members join the blockchain. The cost of interacting with Ethereum has increased due to an increase in traffic.

Fantom cryptocurrency, on the other hand, is designed to create a platform (smart contract). This crypto platform will serve smart cities as their nervous system. Fantom is designed to create a suitable environment for Ethereum to improve.

Fantom project uses a directed acyclic graph (DAG) to provide minimum transaction costs on a continuous, scalable platform. This Fantom overview will talk about Fantom features that make it suitable to be an Ethereum helper.

Also, it contains some important information that helps the reader understand Fantom DeFi projects better.

How can you define Fantom cryptocurrency?

Fantom is a permissionless, open-source, and decentralised smart contract platform for digital assets and dApps (decentralised applications). It is a DAG and 4th generation blockchain platform for smart cities.

It offers DeFi services to developers using its consensus algorithm. Fantom, unlike Ethereum, offers developers and users current functionality and usability upgrades.

The foundation that oversees Fantom’s product offering was launched in 2018. However, Fantom’s Opera and Mainnet were both launched in December 2019. This network support several features like Fantom staking and P2P lending services; hence can absorb some Ethereum share in a few months in the DeFi market.

Additionally, it uses a native token system that aims at solving problems relating to smart contract platforms like transaction speed.

Fantom developers report having reduced the transaction speed to less than 2 sec. This will be the backbone for the upcoming smart cities’ IT infrastructure by handling more than 300 transactions per second. Fantom cryptocurrency platform is the solution to store numerous data volumes effectively and safely.

The main aim of Fantom is to offer lower costs and more scalability. Asynchronous Byzantine Fault Tolerant, the Fantom's infrastructure is made purposefully for network security preservation while maximizing speed.

The working principle of Fantom (FTM)

Is Fantom crypto a good investment? Learn from its multiple layers of operation! It is a delegated proof-of-stake blockchain containing serval layers: Opera core layer, application layer, and Opera ware layer. Each layer has its operation capability that sums up the total Fantom operation.

Opera core layer

This is the core and first layer in Fantom’s Lachesis protocol. Its main function is on the nodes to maintain consensus. Also, it uses DAG technology to confirm all transactions hence enabling the node to metachronously process the transactions.

Each transaction, after its processing, saves on every node in this network. The transaction operation in the Fantom network is similar to other saving transactions in a blockchain, but there is no need to save data on every node thanks to directed acyclic graph technology.

Fantom can maintain its validity through the Lachesis protocol by saving transactions on validating and witness nodes.

Application layer

This layer is responsible for keeping public APIs that make it possible for dApps interface by developers. The APIs ensure reliability and security during transaction connection in dApps.

Opera ware layer

This layer ensures the execution of Fantom functions. It is the middle layer. Another function is to issue payments, rewards and write the network’s story data. The story data helps the network to track all the past transactions. This feature is useful when infinite data is needed in the network.

The difference between Fantom and Salona (Fantom vs Solana)

This Fantom crypto Reddit answer will show the difference between Solana and Fantom and how they relate.

Fantom cryptocurrency uses the Asynchronous Byzantine Fault Tolerant consensus mechanism (it is a DAG). Smart contracts are compatible with Ethereum crypto and other EVM-based DTLs and can be written in solidity.

Solana, on the other hand, uses a consensus-based on proof of history (it is a blockchain). Smart contracts in Solana are not EVM compatible and are written in Rust. However, Solana uses VM, which is faster than EVM, but the challenge is porting existing dApps since learning Rust is hard and needs a complete rewrite.

Despite the difference obtained in the technical perspective of things, they both rely on powerful hardware and are fast. Fantom has a full transaction consensus leading to a faster block finality, while Solana has a higher TPS (throughput).

Investment-wise, Fantom cryptocurrency has more upside, but Solana has more room to move. No need to choose between Solana and Fantom since the two communities get along just fine.

What are FTM advanced smart contracts?

Fantom offers more features to Ethereum’s smart contract. For example, Fantom smart contracts can perform on given instructions efficiently to generate behaviour-based evidence and monitor accuracy in transactions.

Since the Fantom crypto launch date, the team has been taking advantage of its flexibility to develop very efficient Fantom DeFi projects. Just by considering the efficiency in Fantom DeFi projects, you will see what they mean by flexibility.

The Fantom DeFi projects claim to provide more features that suit all users. Therefore, users can borrow, mint, lend and trade digital assets directly from their Fantom wallet at no cost. The main tool used to design Opera Mainnet is the DAG-based Lachesis consensus.

The good side of this Mainnet is that it allows users to use the network to make smart contracts and supports EVM-compatibility smart contracts.

Fantom cryptocurrency supports several DeFi applications that include:

1. fMint - Synthetic assets information can be validated on Fantom. The synthetic assets include:

• Commodities
• Cryptocurrency
• National currencies

2. Ftrade - It makes it possible for users to trade Fantom-based assets without exiting the Fantom wallet.

3. FLend - One can give out and borrow digital assets and earn big interest by trading them and still not lose FTM exposure.

4. Liquid staking - DeFi applications take staked tokens as collateral. All FTM commissions can be converted (liquid) to other valuable assets when in the Fantom ecosystem.

What is a Fantom wallet?

It is a progressive website application that users keep their Fantom tokens and other tokens belonging to its ecosystem. Most of the time, it is called FTM’s native wallet for Opera Mainnet.

The fact that it is a progressive web application makes it easy for an upgrade on any platform. You only need a single codebase to upgrade, and no approval is needed from the third party.

It is perfect for new features integrated into the system. The Fantom wallet serves in different ways that include:

• Send FTM tokens
• Receive Fantom cryptocurrency tokens
• Claiming FTM tokens
• Staking
• Unstaking Fantom tokens

When you follow Fantom crypto news, you will realize that this platform brings many crypto solutions to the crypto community.

For starters, it offers lower transaction fees on services. Unlike other cryptocurrencies, Fantom reduces environmental risks, making it a perfect investment. Fantom cryptocurrency supports smart contracts and dApps.

Investors can benefit more from this supports hence increasing its popularity worldwide. The only work that developers have is to ensure continuous user operational support and transaction efficiency.

After going through this Fantom overview, you can now understand the working principle of the Fantom network and answer the question: is Fantom crypto a good investment?