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After Bitcoin, Ethereum is the world’s second-largest blockchain and cryptocurrency. The use of Ethereum as a basis for blockchain-based product creation is one of the reasons for its success thus far. Ethereum, as a blockchain, has been used to create smart contracts and dApps and is at the heart of the current DeFi craze.
However, it appears like Ethereum is up against some competition in the form of Fantom, a newer blockchain whose native token has been one of the most popular crypto investments in recent weeks.
What is Fantom?
Fantom is a decentralized, permissionless, open-source smart contract platform for decentralized applications (dApps) and digital assets. It is one of several blockchain networks designed as a competitor to Ethereum. The Fantom blockchain mainnet launched in December 2019, and its network architecture aims to address the blockchain trilemma by maintaining a stable balance of scalability, security, and decentralization.
As with other Ethereum alternatives, Fantom aims to deliver greater scalability and lower costs than the legacy first-mover smart contract platform Ethereum 1.0 can. The infrastructure of Fantom is connected via its Asynchronous Byzantine Fault Tolerant (aBFT) Proof-of-Stake (PoS) consensus method, which ensures the network’s operating efficiency. The aBFT network topology is optimized for security while optimizing performance.
Its native FTM coin has grown tremendously in value, recently reaching a new all-time high of $3.48 in October 2021. It is built on Directed Acyclic Graph (DAG). Now, some analysts expect that FTM will hit the $4 (currently at $2.28) mark this month, owing to increased media attention as well as the potential of its native blockchain.
Why is Fantom so Popular?
With all of the attention Fantom and its native FTM currency are receiving; it’s worth looking into why they’re so popular and hailed as the blockchain industry’s future. To comprehend this, we must first examine the Fantom blockchain. The fact that Fantom is a blockchain geared for the implementation of smart contracts, decentralized applications, and enterprise applications is its strongest selling feature.
These are the same advantages that Ethereum provides to its users, but Fantom is being marketed as a newer and better version of Ethereum, with all of the benefits but fewer drawbacks like scalability and security. Given Ethereum’s dominance in the crypto market, the prospect of a new blockchain arriving and building on what it has already accomplished is enticing.
In fact, owing to their apparent potential to replace Ethereum in the market, some blockchains, such as Solana, are dubbed “Ethereum killers.” Ethereum’s native token, Ether, is the second most valued cryptocurrency on the market, after bitcoin.
If any token succeeds in replacing Ether, it might upend the greater crypto market and usher in a new era for the sector.
Will Fantom Burst?
The Fantom blockchain and FTM token are currently on fire, but there is a danger that the ‘bubble’ will burst and the token’s value will plummet. After all, we’ve seen various tokens, such as Shiba, Dubaicoin, and others, rise and fall in the recent year. What keeps FTM from going through the same ordeal?
However, it’s important to remember that FTM is backed by a truly revolutionary blockchain, not just hype. The underlying blockchain of FTM is one with immense promise, which is why people are buying it and raising its value.
Ethereum Vs Fantom
Because it provides the platform for most key blockchain-based companies, Ethereum has maintained its momentum in the blockchain industry for years. Ethereum has seen yet another triumph with the birth of DeFi, which has billions of dollars invested in it, and should DeFi and decentralized applications continue to see demand, Ethereum will have a strong position in the blockchain sector.
FTM’s hype is simply a wager that it can overtake or at the very least compete with Ethereum. If the actual blockchain is capable of delivering this, people will continue to invest in FTM, and the token’s value will rise. This is in stark contrast to a number of viral tokens over the last year that generated a lot of buzz but had no practical purpose and whose token value plummeted once the public realized this.
If Fantom is used more widely both inside and outside the sector, we may expect the bubble to not only stay intact but to grow. With this growth will come more innovative applications of blockchain technology and more amazing products and services for the final consumers, as well as a profit for FTM investors.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.