What is Fantom? Over the past decade, cryptocurrencies have modified many traditional paradigms. The discussion around Fantom crypto seems to be another common detail in cryptocurrencies. However, Fantom introduced a powerful improvement for the extension of DeFi applications and other web3 projects. Understanding how Fantom works and its features can help you learn more about its potential.

1、 What is a phantom?

Fantom can basically be understood as a layer 1 intelligent contract development platform with high performance, EVM compatibility and better scalability. Another important component in Fantom's design is the consensus mechanism, that is, Agkistrodon. With these components, Fantom can act as asynchronous, Byzantine fault-tolerant, and asynchronous layer 1 blockchain protocols. Agkistrodon plays a vital role in ensuring faster transaction speed, deterministic termination and reducing transaction costs. Interestingly, Fantom is still open source, unlicensed, and decentralized.

The design of Fantom FTM has been optimized to solve the problem of large-scale distribution of many services. For example, legacy financial systems, including consumer oriented solutions and back-end tools, require faster finalization and higher throughput. At the same time, they made innovations in security when experiencing the journey of blockchain transformation. Fantom can take advantage of Agkistrodon to ensure that digital asset transactions are executed seamlessly and at an unprecedented speed, while providing significant improvements. Most importantly, Fantom will not compromise on decentralization and security to ensure scalability.

About Fantom's modular architecture. It can promote the full customization of blockchain network digital assets, with unique features suitable for personal use cases. In addition, it ensures network security through totally leaderless proof of interest or PoS protocol. The asynchronous BFT consensus algorithm plays a role again. It has the ability to expand across different nodes, and is an open environment without permission, ensuring an exclusive level of decentralization. It is worth noting that Fantom does not use the authorized stakeholder consensus proving mechanism or any "master node".

2、 Why do I need Fantom?

The first thing you need to know about Fantom FTM is the network background. Bitcoin marks the beginning of the cryptocurrency era in 2009 and a milestone in technological progress. The emergence of Bitcoin has laid the foundation for a prosperous ecosystem of blockchain applications. On the other hand, Bitcoin faces certain limitations, such as scalability.

The consensus algorithm, a component of the Bitcoin blockchain, has become the biggest setback due to its design limitations. Similarly, many other blockchain networks have to deal with the trade-off between three important factors in the blockchain dilemma. These three elements are decentralization, scalability, and security. According to the blockchain dilemma theory, the blockchain network must exchange one component for the other two.

We need to take a look at the example of Bitcoin that emphasizes security and decentralization. Based on the blockchain dilemma, Bitcoin will have to make a compromise on scalability. Therefore, it is not an ideal choice for transactions requiring faster confirmation, such as asset transactions, daily payments and data transmission. At the same time, the concern about the high network congestion on the Ethereum blockchain network also requires alternatives with better scalability. Although the Layer 2 solution can be used as a solution scalability problem, the Layer 1 implementation needs to be improvised.

summary

What is a phantom? And why do we need phantom? The answer to these two questions. The conclusion about Fantom shows that it is a reliable alternative to the layer 1 implementation. You can notice how it solves the blockchain problem with the consensus algorithm and Fantom Opera chain. In addition, Fantom is not the implementation of blockchain. It is actually a DAG or directed acyclic graph, another type of distributed ledger technology.