Inside Fantom’s Strategy to Build a Decentralized Tomorrow

9 months ago 3

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Blockchain technology is paving the way for decentralized solutions, and Fantom is emerging as a key player, redefining the paradigms of speed, efficiency, and scalability.

Michael Kong, CEO of Fantom, recently shared insights with BeInCrypto into the company’s strategy to construct a decentralized tomorrow. He emphasized the role of Fantom Sonic and the network’s approach to achieving consensus.

Addressing Scalability With New Tech

A relentless pursuit of innovation has marked Fantom’s journey into the blockchain industry. Kong elucidated that the release of Fantom Sonic aims to “dramatically improve” the Lachesis consensus protocol. This enhancement allows Fantom to process over 2,000 transactions per second with a one-second confirmation time.

Such performance surpasses Ethereum’s and sets a new industry standard for transaction speed and efficiency.

“There is a tradeoff between increasing the number of validators and the network’s performance. On average, the more validators in the network, the longer it takes to achieve consensus. However, the release of Fantom Sonic dramatically improves our Lachesis consensus protocol… Even if the number of nodes increased dramatically, confirmation times will still likely be very low,” Kong told BeInCrypto.

At the core of the protocol’s architecture is the Proof-of-Stake (PoS) mechanism. It is safeguarded by a consensus model requiring two-thirds of the total staked FTM for transaction confirmation.

With approximately 1.4 billion FTM currently staked and a total value locked (TVL) of $67.46 million, the network ensures security against potential threats, reinforcing its reliability and trustworthiness.

Moreover, Fantom Sonic, the network’s new tech stack, introduces a Fantom Virtual Machine (FVM). According to Kong, it aims to reduce storage requirements and enhance transactions per second throughput significantly.

Compatible with Solidly and Vyper programming languages, it facilitates a transition for developers familiar with Ethereum, fostering a more inclusive and adaptable ecosystem.

“The new mechanism will have Proof-of-Safety, liveness, and robustness. Additionally, we plan to implement ‘horizontal scaling’ to maintain great performance even if there is a notable increase in nodes,” Kong added.

The upcoming launch of Fantom Sonic on the mainnet signifies a leap forward, promising to elevate network performance to unprecedented heights. Fantom’s long-term vision includes exploring new theories and scaling solutions to accommodate increasing nodes without compromising performance.

How to Achieve Real Decentralization

Addressing the topic of decentralization, Kong shared that there is “no correct level of decentralization.” He highlighted the expectation for a more evenly distributed staking system as the network grows.

This model promotes a more secure and decentralized environment while keeping validators motivated by economic incentives to maintain network integrity and trust.

“Like many other networks, the number of staked tokens is unequal across validators. While we anticipate more nodes joining the network, some nodes will still have significantly more staked FTM than others. That said, validators have an economic interest in maintaining trust in the network,” Kong added.

Therefore, Fantom’s strategy extends beyond technological advancements, focusing on community and validator engagement. The anticipated reduction in the cost of running a validator node under Fantom Sonic aims to democratize network participation, inviting smaller validators to contribute to and benefit from the ecosystem’s growth.

Looking ahead, Kong anticipates significant advancements in zero-knowledge proofs and technologies poised to enhance network security and scalability further. He concluded that collaboration with the right team is paramount for success in the cryptocurrency industry.

“The most important advice I can give is to work with the right people – those with the skills you need for your project, honesty, integrity, and the ability to be a team player. Without the right people, it will be far harder to make the kind of impact you want,” Kong emphasized.

As blockchain technology regulations evolve, Fantom remains proactive in navigating the legal environment.

Indeed, the protocol ensures that dApp partners and developers have the necessary support to thrive within compliant frameworks. Its strategy for building a decentralized tomorrow reflects its leadership’s vision. Also, a commitment to fostering a secure, efficient, and inclusive digital future.