Fantom Vs. Avalanche – What’s the Difference?
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To understand the key difference between Fantom (FTM) and Avalanche (AVAX), you need to look deeper into each project's goal and purpose. Avalanche is a popular multi-chain DeFi ecosystem, whereas, Fantom seeks to provide a decentralized infrastructure to power future smart cities and other web3.0 applications. Both projects are popular and show potential. Here is everything you need to know about Fantom vs. Avalanche
What is Avalanche?
Avalanche was built to provide some advantages to developers and users. For one, the network leverages a multi-layer approach to reduce fees, improve interoperability, and provide more programmability to the market. The system also provides users with a reliable and direct p2p electronic value transfer option.
Avalanche enables developers to create dApps from a variety of different approaches. The network enables the use of multiple virtual machines including the EVM. This strategy opens the door for more developers to join the market and create more flexible and helpful dApps.
What is Fantom?
Fantom is an all-inclusive DeFi ecosystem. The protocol provides options for both developers and users seeking access to the latest functionalities in the market. Fantom leverages some unique protocols to remain ahead of the competition. For one, it is the first Directed Acyclic Graph (DAG) based smart contract platform.
The use of DAG technology improves scalability across the board. The developers wanted to ensure the network remained scalable to fulfill its goal of mass adoption. The team went as far as to label the blockchain the “nervous system of tomorrow's smart cities.”
What Problems was Avalanche Built to Alleviate?
Avalanche was built to tackle issues that are most common to developers and users today. The network reduces fees and offers users a streamlined experience compared to earlier networks. Avalanche is incredibly scalable with the network showing sub-second transaction times. Notably, Avalanche has the capabilities to scale vertically. The network is currently clocked at 6500 tps, making it faster than most networks in operation today.
Avalanche seeks to reduce inflationary concerns for users by introducing a deflationary fee structure. All AVAX fees get burned, which reduces its overall supply within the market. This action drives up demand, resulting in higher value for the tokens. This fee structure combined with the network's super low gas fees has helped it to capture more of the Ethereum market over the last year.
What Problems was Fantom Built to Alleviate?
Fantom was built to alleviate some serious concerns for crypto users today. The protocol was designed to be highly scalable, with the ability to do so exponentially as a result of its DAG structure. This structure also enables Fantom users to enjoy near zero fees on transactions.
Fantom helps to reduce onboarding for Ethereum developers by integrating an EVM-compatible structure. Developers can create using their favorite options from Ethereum which makes it easier to get more developers to use the network. Additionally, the energy-efficient structure makes the protocol more sustainable than its competitors.
How Does Avalanche Work?
Avalanche is multi-layered in its design, making use of three distinct blockchains – each working in tandem to provide users with a positive experience.
One of the best things about Avalanche is that developers can bake regulatory compliance directly into their networks and tokens. The handling of regulatory compliance networks is achieved through use of what Avalanche calls its ‘X-chain'.
The C-chain is another vital part of the ecosystem, which mimics developer features found on the Ethereum network. As such, it enables Ethereum developers to effortlessly migrate or expand their operation onto the Avalanche network. Leveraging a separate blockchain for these options improves the entire network's capabilities, and is a unique structuring within the market.
All administrative options are handled by the P-chain. This is the layer that handles the creation and monitoring of other blockchains built atop Avalanche. The network provides control and transparency to the entire system. This layer also enables users to stake AVAX and secure passive returns.
How Does Fantom Work?
Fantom operates as a peer-to-peer blockchain that leverages multiple layers to remain decentralized and secure. The first layer of Fantom is called the Opera Layer. Its job is to maintain consensus across all of the networks and the mainnet. As such, this layer has high interoperability and includes access to various tools to improve your monitoring capabilities.
The next layer is called the Opera Ware Layer. This protocol is used to track all past transactions across the network and its subnets. This structure improves the performance of the entire blockchain because it leverages a technology called story data to improve performance.
The Application layer is where most people will interact with Fantom. This layer handles options like APIs and other developer-centric features.
The fLend protocol offers users access to a p2p DeFi lending pool. Users can lend out their crypto and retain ownership of their assets while securing returns. The lending pool generates interest to help offset any late payments. Also, the network incorporates a balance system that calls in loans early if provided collateral loses value.
How to Buy Fantom (FTM) and Avalanche (AVAX)
Currently, Fantom (FTM) and Avalanche (AVAX) are each available for purchase on the following exchanges.
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.
Binance – Best for Australia, Singapore, UK, & USA residents. Canadian residents are prohibited.
Discount Code: EE59L0QP for 10% cashback off all trading fees for non-USA residents. USA residents: Trade $100 & Earn $10 in 30 days after account registration.
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.
They offer trading access to over 190 countries including Australia, Canada, Europe, and the USA. (Excluding New York & Washington state).
Fantom Vs. Avalanche – Two Advanced Networks Battle for Supremacy
Avalanche (AVAX) vs Fantom (FTM) share a lot of characteristics such as the use of multiple layers to improve the responsiveness of the protocol. These systems are growing in popularity due to their low fees and overall added programmability. As such, both networks have the potential to be an upending force in the market moving forward.
To learn more, make sure to visit our Investing in Fantom and Investing in Avalanche guides.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com
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