What is FTM? Everything About Fantom's Native Token

What is FTM? FTM also known as Fantom Native Token was established in the year 2018. Fantom is known as a level 1 blockchain which is an essential substitute for the low speeds and high costs of transacting through Ethereum. It is a blockchain network that is highly expandable and is powered by its native token. This blockchain platform is for crypto dApps, DeFi, and other enterprise applications. FTM is used for staking, voting, making payments, and covering transaction fees on Fantom. The three elements of decentralization, security, and scalability are commonly referred to as the “blockchain trilemma,” meaning a focus on two has often required a trade-off on the other. Fantom aims to overcome these tradeoffs and make improvements across all three with its innovative proof-of-stake (PoS) consensus mechanism known as Lachesis.

How does FTM work?

As we understood what is FTM, now let us navigate to learn how does FTM work:

• The Fantom network was built around four core principles i.e. modularity, scalability, open source, and security.

• Fantom’s modular architecture is highly tailored. For example, users can easily port Ethereum-based decentralized applications (dApps) to the Fantom mainnet, which is followed by Opera – the open-source blockchain developed by Fantom to rule its network.

• Fantom's applications are independent of each other, as such the performance and stability of one application are not affected by traffic on the wider network.

• This works on an Open source anyone can run a node and customize the underlying code of the Fantom protocol, which has been shared on GitHub.

• Fantom is secured by the mechanism called 'Lachesis consensus'.

How to buy FTM?

Outlining what is FTM? how it works? and   how to buy FTM?below:

• There are 2 ways to buy FTM tokens, fiat currency and crypto.

• You can use debit or credit cards or bank transfers to buy with money.

• If you want FTMs with crypto, you must use Ethereum, Bitcoin, BNB, or Tether

• You can buy this token from decentralized crypto exchanges.

• For your convenience, let’s take the example of KuCoin. You can follow the steps mentioned below to buy FTM using KuCoin.

• Sign in to an official KuCoin account or sign up if you do not have an account

• Enable 2-factor authentication from the security settings.

• Scan the barcode with your Google Authenticator app and enter the 6-digit verification code.

• Validate your email and submit an ID proof to validate your identity.

• Navigate to the ‘Assets’ menu and select Fantom(FTM).

• Then, move to the ‘Deposit’ menu on the left side of your screen and fund your account.

• Select ‘Markets’ from the trading menu and click ‘Trading’.

• Now you are all set to trade FTM tokens.

How to do Staking on Fantom?

Let us have a look on staking Fantom:

• On the Fantom website, navigate to the ‘Staking’ menu.

• Choose ‘Delegation’ from the drop-down menu.

• Select a reputable validator.

• Choose your Annual Percentage Rate.

• Enter there the FTM amount.

• Select the duration you want your assets to be locked up.

Some important note while staking:

• On staking, you will receive FTM tokens in return.

• You can stake/unstack tokens whenever you wish.

• 1 FTM is considered the minimum staking amount on this network.

• Upon availing of staking rewards, the delegation fee is 15%.

• When you unstake your FTM tokens, you get your funds after 7 days.

• The minimum number of days to lock your FTM holdings is 0 days.

• You can lock your FTM holdings for 365 days, thereby getting the maximum reward rate.

Storing your FTM tokens

Fantom does not encourage storing your Fantom native tokens on exchanges because of custodial risks. This can lead to losing out on staking rewards. You can use MetaMask, Ledger, fWallet (Fantom wallet), or any other relevant crypto wallet for storing your FTM assets.

Let’s take the example of the Fantom wallet to understand how to add an FTM token to your crypto wallet. You can install this crypto wallet on Google Chrome as an extension or even use it on your Android and iOS devices.

The steps to create a new account are:

Go to https://pwawallet.fantom.network/#/

Click on ‘Create Wallet’

Create an at least 8-character long password

Re-enter the password, tap on the checkbox, and download the keystore file

To access your crypto wallet from other devices, you can use the password and keystore file.

Tap on ‘View your private key’ and copy down your 24-word mnemonic phrase and your private key

Verify your 24-word mnemonic phrase

Press ‘Access your wallet’

Based on the understanding of what ID FTM is, here are a few advantages and disadvantages listed below:

Advantages of Fantom

High transaction speed: Lachesis consensus mechanism.

Notable scalability.

Compatibility with other platforms.

Energy proficiency.

Modular architecture.

Disadvantages of Fantom

It is less known compared to its competitors.

Centralized validation process.

Security issues.

Debugs.

Is Fantom a good investment? Well, in the crypto world, it is hard to be at big profits. Before you put your money in, make sure to research Fantom's technology, team, backers, and partnerships. Only invest what you can afford. Fantom is made for big business applications and crypto programs, which may sound promising. But like any investment, it comes with its risks and challenges. The cryptocurrency market is not regulated, so there's always a chance of scams or hacks. Stay informed about security threats and take precautions like using 2FA and avoiding certain wallets.

As for Fantom's future, it's trying to be more secure and eco-friendly than older cryptocurrencies like Bitcoin or Ethereum. It uses a different method called PoS and a special algorithm called Lachesis for communication.

FAQs

1) What is FTM used for?

FTM is used to pay fees for deploying Fantom smart contracts, creating new networks, or even transaction fees.

2) What is the use case of FTM coin?

FTM tokens have use cases such as including executing transactions, securing governance rights, and participating in decentralized finance (DeFi) applications.

3) What does Fantom FTM do?

It is used for voting, stacking, making payments, and covering transaction fees on Fantom.

 4) What does FTM offer?

FTM allows developers to build dApps and run smart contracts while also providing a native token (FTM) for staking and making payments.