Fantom Vs. Polkadot – Everything You Need to Know
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Learning what makes Fantom (FTM) different from Polkadot (DOT) is a great way to gain a better understanding of the evolution of cryptocurrencies and the market as a whole. Both of these networks feature exclusive technologies that make each more scalable and secure than their predecessors. Here’s everything you need to know about Fantom vs. Polkadot.
What is Fantom?
Fantom is an advanced 3rd generation public blockchain ecosystem. The network was designed to provide infrastructure for tomorrow’s smart cities. In this way, the network would operate as the nervous system of these communities.
Fantom raised eyebrows when it entered service for multiple reasons. Primarily, it was among the first blockchains to integrate Directed Acyclic Graph (DAG) based smart contracts. Integrating this technology enables the network to scale vertically to meet the needs of the community.
The Fantom project gets support from the Fantom Foundation. This non-profit provides both technical and financial support to projects with the potential to expand the ecosystem. Notably, Fantom entered the market in 2018 and lists Michael Kong as its current CEO.
What is Polkadot?
Polkadot leverages a multi-chain approach to improve integration and scalability. The network was designed from day one to empower developers to create a decentralized network on top of the blockchain. The system improves interoperability between all networks using its relay chain features.
Notably, Polkadot enables developers to leverage the best aspects of other networks to create more immersive and helpful Dapps. The platform provides permissionless functionality along with a streamlined programming process that automates many of the most common tasks needed for Dapp development.
What Problems was Fantom Built to Alleviate?
Fantom was built to tackle the major issues in the market at that time. Primarily, scalability and cost issues were of the most concern in 2018. The Fantom network uses unique data structures that support instant transactions and simultaneously smart contract executions. The developers seek to support 300,000 tps on the network.
High fees are another major concern that Fantom helps to eliminate. The network has one of the smallest fee structures available to users today. This structure makes it ideal for Dapp users and developers alike. Fantom is ideal for payments, DeFi, supply-chain monitoring, and enterprise applications.
Fantom also tackles energy consumption concerns. Securing PoW networks is a major drain on the current electrical grid. Networks like Bitcoin are very energy intensive due to their structure. Fantom eliminates miners to provide more sustainability to users.
What Problems was Polkadot Built to Alleviate?
Polkadot was built to reduce a few pain points. The network tackles the issue of compatibility. There are many different systems in use today in the blockchain sector and few can communicate securely in a streamlined manner. Polkadot reduces compartmentalization and enables developers to leverage multiple network benefits at once.
The network empowers users through the use of its scalability and security. You can securely send data that leverages info from both private and public blockchains to accomplish your task. Consequently, Polkadot is known for its flexible architecture and programmability,
How Does Fantom Work?
Fantom can be broken down into three layers that operate together to create its ecosystem. These networks share compatibilities to make the process streamlined. The first layer is called the opera Core Layer. This layer is responsible for keeping the blockchain valid.
The Opera layer is where consensus is conducted and transactions confirmed. It’s also where validators and other network nodes reside. As such, it’s a vital component of the environment.
The Opera Ware Layer is responsible for writing story data to the blockchain. Fantom uses story data to record blockchain specifics and transactions to improve trackability. This layer is expandable using DAG tech to enable limitless data access. This layer is also responsible for all executive functions.
The Application layer is where the network interacts with other dapps and applications. It’s where you will find items like the network APIs for Dapp development. APIs are programs that connect computers securely.
The Fantom ecosystem is packed with DeFi features. For example, there is the fLend protocol which is a peer-to-peer lending system. There is also the fMint function that users can leverage to make digital assets with ease. Anyone can trade their Fantom assets using the fTrade feature.
How Does Polkadot Work?
Polkadot uses multiple layers to improve interoperability and functionality across the ecosystem, The network combines private and public chains using the relay chain. In the Polkadot universe, there are Parachains and Parathreads.
Parachains are sovereign blockchains. These networks can have disperate tokens, consensus, and governance systems in place. They are usually created to serve a specific role and can operate without affecting the Polkadot mainnet. There are currently a variety of parachains in service.
The second kind of network is called parathreads. These networks use a pay-as-you-go model to lower costs. This type of network is ideal for Dapps that only need blockchain access for minimal occurrences. This structure is more cost-effective and reduces network congestion.
The Relay chain is a critical component of Polkadots interoperability. All parathreads and parachains interact with the relay chain directly. The relay chain provides shared consensus and cross-chain capabilities when needed. Notably, all Polkadot transactions enjoy near-instant finality thanks to the platform's structure and consensus system.
Bridges Expand the Network
Polkadot uses bridges to connect its networks to other blockchains securely. Bridges make it possible for Dapp developers to leverage aspects like Bitcoins’ security in their applications. Notably, bridges give Polkadot near-infinite expandability.
DOT is the main utility token for the Polkadot ecosystem. This flexible digital asset can be sent globally in seconds as a cryptocurrency and can be staked to secure passive returns. Notably, DOT also holds a role in the network’s governance systems.
How to Buy Fantom (FTM) and Polkadot (DOT)
Currently, Fantom (FTM) and Polkadot (DOT) 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. Polkadot – Speed vs Interoperability
When you look a the debate of Fantom (FTM) vs Polkadot (DOT), it comes down to speed vs interoperability. Fantom provides lighting fast transactions and low fees which are a major draw to developers. On the flip side, Polkadot is also fast and can support interoperability across multiple networks simultaneously. For these reasons, these networks both serve vital roles for Dapp developers depending on their needs.
To learn more, make sure to visit our Investing in Fantom and Investing in Polkadot 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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