Fantom's Evolution: From Technical Innovations to Ecosystem Expansion
Jessie A Ellis Sep 24, 2023 13:03
Fantom continues to innovate despite facing challenges in its DeFi ecosystem. With planned technical upgrades and a focus on growing its developer community, the network aims for a robust and diversified blockchain ecosystem.
Key Takeaways
According to Messari's report, Fantom is a Layer-1 blockchain with smart contract capabilities, focusing on DeFi, NFTs, and gaming.
The network uses an aBFT consensus mechanism and an EVM-compatible state machine.
Despite market downtrends, Fantom has seen growth in daily transactions and active addresses.
The network is planning significant upgrades, including a new StateDB storage system and Fantom Virtual Machine (FVM).
Fantom's DeFi ecosystem experienced a setback due to a Multichain bridge exploit but is recovering with new initiatives.
Background and Technology
Founded in late 2019 by Andre Cronje and Michael Kong, Fantom aims to address blockchain scalability and usability issues. It uses an asynchronous Byzantine fault-tolerant (aBFT) consensus mechanism known as Lachesis and an EVM-compatible state machine called Opera. The network achieves sub-second finality (~900 ms), offering advantages like transaction certainty, better user experience, and energy efficiency, according to Messari.
Network Activity and Ecosystem
Fantom's network activity has seen several cycles since its launch. Despite a broader market downtrend, average daily transactions and active addresses have grown year-to-date compared to late 2021. The Fantom ecosystem comprises DeFi protocols, NFT marketplaces, and gaming applications. Initiatives like the Gas Monetization program and Ecosystem Vault aim to attract developers and grow the ecosystem.
DeFi and Security Challenges
Fantom hosts about $94 million in total value locked (TVL) as of now, a significant drop due to a Multichain bridge exploit in July 2023. The network is taking measures to recover, including collaborations with Axelar Network and Layer Zero to provide additional bridging liquidity.
Upcoming Technical Improvements
Fantom plans to introduce a new StateDB storage system and Fantom Virtual Machine (FVM) in the coming months. These upgrades aim to increase the network's scalability and efficiency. Additionally, account abstraction is on the roadmap to improve wallet management and user experience.
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