Fantom (FTM) is a highly scalable, open-source, and decentralized Layer-1 smart contract platform. It is designed to be compatible with the Ethereum Virtual Machine (EVM) but with key differences. Fantom uses the aBFT Lachesis Protocol, which maximizes speed while ensuring security, allowing transactions to happen quickly with minimal congestion. The platform is known for its fast finality, low fees, and high bandwidth, making it suitable for decentralized finance (DeFi) applications, blockchain games, and the Internet of Things (IoT).
Fantom (FTM) is used for several purposes within the Fantom ecosystem:
Staking Rewards: FTM tokens are used to issue staking rewards on the network. Validators and stakers lock up their FTM tokens to secure the network and receive rewards in return.
Transaction Fees: FTM is used to pay transaction fees on the network, ensuring that transactions are executed efficiently and securely.
Governance: FTM tokens are used for on-chain governance, allowing stakeholders to vote on network-related decisions and propose changes to the ecosystem.
Network Security: The Proof-of-Stake (PoS) consensus mechanism, called Lachesis, relies on FTM tokens to secure the network. Validators need to stake a minimum of 3,175,000 FTM tokens to participate in the network.
DeFi Applications: FTM tokens can be used as collateral to mint sFTM, which can be used in Fantom’s DeFi applications such as lending, borrowing, and trading.
Smart Contracts: FTM tokens are used to set up and execute smart contracts on the Fantom network, which supports multiple decentralized applications (dApps).
Overall, the FTM token plays a central role in maintaining the integrity, security, and functionality of the Fantom ecosystem.
To store Fantom (FTM) tokens, you have several options:
Fantom Wallet (fWallet): This is the official wallet for the Fantom network. It allows you to create a new wallet or import an existing one, manage multiple wallets, send and receive FTM tokens, stake tokens, and participate in governance proposals. You can access it through a Progressive Web App (PWA) and set up a strong password to secure your wallet.
Ledger Hardware Wallet: Ledger offers advanced encryption and security features to protect your FTM tokens. You can use the Ledger Nano X, which supports staking and can be integrated with MetaMask for access to various decentralized apps (dApps). Ledger also allows you to recover funds via a mnemonic seed phrase if your wallet is lost or compromised.
MetaMask: You can add the Fantom network to MetaMask to interact with the Fantom ecosystem. This allows you to engage with hundreds of dApps and manage your FTM tokens. Ensure you follow the steps to configure MetaMask correctly.
Trust Wallet: This mobile wallet, owned by Binance, supports the Fantom mainnet and allows you to store, send, and receive FTM tokens. It is available for both Android and iOS devices.
Other Options: You can also use other wallets that support FTM, such as MyEtherWallet, which offers a user-friendly interface for managing your tokens.
Regardless of the wallet you choose, make sure to follow best practices for securing your wallet, such as storing your mnemonic phrase or private keys safely and using strong passwords.
To buy Fantom (FTM) tokens, follow these steps:
Choose an Exchange: Select a reliable cryptocurrency exchange that supports Fantom, such as Binance, KuCoin, Kraken, or Uphold. Each exchange offers different payment methods and fees, so compare them to find the best option for you.
Create an Account: Register on the chosen exchange's website or mobile app. You will need to provide your email address, mobile number, and other personal details. Verify your account by following the exchange's instructions, which may include identity verification and setting up two-factor authentication.
Add a Payment Method: Link a payment method to your account, such as a credit or debit card, bank account, or third-party payment processor. The available payment methods vary by exchange and region.
Buy Fantom: Navigate to the exchange's Fantom (FTM) page and select the amount you want to purchase. You can buy FTM directly with fiat currency or first purchase a stablecoin like USDT and then exchange it for FTM. Confirm your order and wait for the transaction to complete.
Store Your FTM: Once you have bought your FTM, you can store it in your exchange account or transfer it to a personal crypto wallet like Trust Wallet or Metamask for added security and flexibility.
Remember to always follow the specific instructions for your chosen exchange and be aware of any fees associated with your transactions. Additionally, consider the risks involved with investing in cryptocurrencies and ensure you understand the market before making a purchase.
