Fantom Vs. Hedera – What’s the Difference?
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Once you understand the differences between Fantom (FTM) and Hedera (HBAR), it will be easier to make an informed trading decision. Both of these networks leverage DAG technology to improve performance. As such, these networks compete in the enterprise blockchain sector. Here is everything you need to know about Fantom (FTM) vs. Hedera (HBAR).
What is Hedera?
Hedera (HBAR) entered the market in July 2017 as an enterprise-grade layer 1 DLT. Notably, Hedera isn't a blockchain but rather a new type of decentralized network called a hashgraph. Currently, Hedera is the only hashgraph network in use publicly, and provides high performance and low cost to the market.
Hedera was founded by Dr. Leemon Baird and Mance Harmon. The platform, which is based out of Texas, has secured some high-level partnerships since its launch. The platform raised eyebrows when it partnered with French AAA videogame developer Ubisoft. The network also partnered with HeadStarter to drive Web3 applications on the system.
What is Fantom?
Fantom (FTM) is a programable layer 1 blockchain that integrates Directed Acyclic Graph (DAG) based smart contracts. Like Hedera, Fantom provides high performance to the market with very low fees due to its technical structure. The protocol was designed to improve on earlier blockchains such as Ethereum.
Fantom's developers envision the protocol one day operating as the underlying infrastructure for tomorrow's smart cities. The network's transaction throughput and responsiveness make it ideal for these applications. Interestingly, the developers behind the project have dubbed the network as a “nervous system for smart cities”.
What Problems was Hedera Built to Alleviate?
Hedera's design helps to alleviate some of the biggest issues facing blockchain users today, such as centralization. In addition, Hedera provides super low fees compared to other networks. The protocol can send transactions at a fraction of the cost typical on networks like Ethereum. These low rates combined with the scalability of the network make it a powerful tool for businesses seeking to integrate DLT. Notably, Hedera can handle a throughput of 10,000 transactions per second.
Lack of Miner Input
Another problem that Hedera helps to remedy is a lack of node input. Many networks rely on miners and nodes but give these users very little say in their actions. In the Hedera consensus system, miners can choose the order of transactions. They can also choose to delay or stop them when required.
What Problems was Fantom Built to Alleviate?
Fantom helps to eliminate some of the onboarding confusion found in the market today. The protocol provides an all-in-one solution to those seeking to enter the decentralized economy. The system combines advanced DeFi with other passive income methods to produce ROIs.
Scalability concerns were on the top of the development list of demands. As a result, the network now surpasses much of the competition in terms of transaction throughout. The technical structure of the network enables it to scale vertically and offer a near-zero transaction fee structure.
Networks like Ethereum and Bitcoin are notoriously power-hungry due to their use of a Proof-of-Work consensus mechanism. Fantom's developers wanted to create a more sustainable alternative for users. Fantom offers a very low carbon footprint and requires much less energy to remain valid. The network seeks to remain carbon neutral as it expands.
Fantom was built to interact with the Ethereum ecosystem as part of its onboarding protocols. The system is 100% EVM compatible, which means that developers can extend or migrate their Dapps to Fantom without recoding. This approach is one of the main reasons why Fantom continues to see Dapp developers enter the network.
How Does Hedera Work?
Hedera is a Proof-of-Stake (PoS) distributed ledger. The protocol operates as the first hashgraph network in the market. This designation refers to the way the system groups transactions.
Hedera introduces a new token to the market called HBAR. This token enables developers to execute smart contracts, and for users to interact with network features. You can stake HBAR and secure passive returns using the PoS systems. Notably, the platform offers low lockup periods of 24 hours. There are only 50 billion HBAR slated for issuance over the life of the projects.
The HBAR Foundation is responsible for developing and nurturing the Hedera community. The non-profit can provide technical and fictional support to projects it deems a worthy cause. As such, the group has already helped multiple Dapps further develop.
Hedera uses a unique governance system. The Hedera Governing Council is composed of the 17 companies backing the project. The firms include Boeing, Deutsche Telekom, Google, IBM, LG Electronics, and Tata Communications. Notably, all council members have some form of partial ownership over the platform.
How Does Fantom Work?
Fantom operates as a layer 1 blockchain that supports full DeFi and smart contract capabilities. The protocol has proven to be ideal as a payments system and can support advanced enterprise applications. Fantom leverages multiple layers to provide scalability and security.
The system separates validation from applications as a part of this strategy. As a PoS network, users can stake their tokens as part of the validation process. Notably, Fantom introduces a tech called ‘Story Data' that improves the validation processes by enhancing the trackability of past transactions.
One of the coolest features of Fantom is the fMint option. This system makes it simple to create digital assets. You can create NFTs, stablecoins, tokens, and synthetic assets without coding using this protocol.
There is also the fLend p2p system. This option enables you to secure interest by lending out your unused crypto to other users.
Fantom relies on multiple tokens due to its diverse offerings. The main utility token for the network is FTM. You can use this token to pay fees and users and earn rewards through staking. There are also sFTMs which are synthetic assets that operate on the Fantom blockchain. Lastly, fUSD is the network's algorithmic stablecoin.
How to Buy Fantom (FTM) and Hedera (HBAR)
Currently, Fantom (FTM) and Hedera (HBAR) 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.
Fantom vs. Hedera – DAG Blockchains Battle it Out
There are some serious advantages that DAG tech brings to the market. It's interesting to see how both of these networks have implemented the technology differently with similar results. Now that you have a better understanding of Hedera (HBAR) vs Fantom (FTM), it's wise to keep an eye on both of these networks to see how this battle plays out.
To learn more, make sure to visit out Investing in Hedera and Investing in Fantom 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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