- Yearn Finance goes multichain with Fantom: it’s the second big deal for the blockchain since the beginning of 2021
- Decentralized finance is profiting from the innovations brought by blockchains that solve the problem of transaction speed.
Fantom focuses on smart contracts execution to provide the DeFi space with faster solutions. The team behind the project assesses that they brought the execution speed to less than 2 seconds.
The purpose of Fantom Foundation is to solve the blockchain trilemma by providing a faster, more scalable and safer technology. For this reason, the Foundation developed a new consensus algorithm known as Lachesis.
Lachesis is, in technical terms, an aBFT consensus algorithm. Differently from Nakamoto and Proof-of-Stake consensus, an asynchronous Byzantine Fault Tolerance algorithm doesn’t need to limit the number of nodes to improve scalability and security. This makes a blockchain far more decentralized in respect with the most common consensus algorithms.
Lachesis also doesn’t need nodes to wait to confirm blocks, and this allows transactions to be executed in less than two seconds, further improving scalability and security.
This consensus was built to be easily integrated with open-source projects like Cosmos SDK and Ethereum, to improve its usability.
Even though the actual integration between Yearn Finance and Fantom happened on October 7, the Fantom Foundation waited until yesterday to publish a press release via GlobeNewswire. The CMO of the foundation, Simone Pomposi, states that Fantom is a leader bringing blockchain technology to a new level and highlights other achievements of the Fantom Foundation. Earlier this month the foundation also launched two new projects: Artion, an NFT platform, and Geist, a decentralized lending platform.
The Future For Fantom
Fantom is attracting the interest of DeFi platforms. Not only Yearn Finance, but also Curve.
To fund its project, the Fantom Foundation launched a token sale in 2018. The ICO raised $39,650,000 thanks to FTM. FTM can have more than one definition, in the sense that it can be considered both a coin and a token.
A token, because traders and investors can buy FTM as an ERC-20 – thanks to the integration with Ethereum, as a BEP2 token – because of the integration with the Binance Smart Chain, and as a coin – the only version that can be used on Fantom’s mainnet, OPERA.
In any case, the token uses a Proof-of-Stake mechanism, and nodes need to hold at least 3,175,000 FTM to validate transactions.
The solidity of the project, combined with a relatively low maximum supply of 3,175,000,000 FTM (80% already in circulation) and a mechanism that acts on reducing the offer, may positively influence the price of this altcoin – currently at around $2.