Fantom Vs. Solana – What’s the Difference?
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When discussing Fantom (FTM) vs Solana (SOL) scalability is a prevalent theme. Both platforms were built to compete with Ethereum and provide support for the latest DeFi functionalities. These networks may look similar from afar, but once you examine the details the differences become more obvious. Here's everything you need to know about Fantom vs Solana.
What is Fantom?
Fantom was built to one day become the infrastructure for tomorrow's smart cities. As such, the development focused heavily on scalability. The system was the first blockchain to integrate Directed Acyclic Graph (DAG) technology to improve performance. DAG is a computing system that optimizes performance by creating a more efficient data flow.
What is Solana?
Solana operates as a high-performance blockchain that supports full programmability. It includes an open-source infrastructure and the ability to support DeFi functions like staking and farming.
Solana entered the market in 2017, and was founded by Anatoly Yakovenko. The development team behind the project have held various positions at major tech firms like Dropbox. Solana's ecosystem has grown significantly since 2017, establishing partnerships along the way (i.e. Serum DEX).
What Problems was Fantom Built to Alleviate?
Fantom hopes to become a viable alternative to Ethereum by tackling both centralization and network congestion. The system is highly scalable to meet the needs of the growing crypto market, with the capability of handling 3000 transactions per second. The technical structure of Fantom makes it perfect for use across multiple industries requiring high transaction throughput.
Fantom was also built with sustainability in mind. Earlier blockchains have been called out for excessive energy consumption. For example, Bitcoin uses more electricity than select small countries – a level of consumption which many believe is not sustainable. As such, Fantom was designed from day one to be environmentally friendly, seeking to achieve a carbon-zero footprint.
The cost of transactions on most networks is on the rise. Ethereum, in particular, suffers from gas fees that can be more than the transaction, resulting in many users having quit the ecosystem. Fantom on the other hand offers an affordable option to consider, with users often paying near-zero fees.
What Problems was Solana Built to Alleviate?
Solana was also designed to provide top performance to the market. The network is capable of 29,171 transactions per second according to developers, which places its scalability above national payment processors like VISA and PayPal. This TPS rate is possible because Solana features the ability to scale proportionally by adjusting network bandwidth.
Solana developers have the freedom to create as they please with the protocol operating as pure code. As such, there are no central groups to block your transactions or confiscate your funds. The entire protocol operates in a trust-less, and distributed manner.
Lack of Passive Income
As a Delegated Proof of Stake network, Solana users can secure passive income easily. DPoS networks enable you to participate in the validation process without being a validation node. Instead, you delegate your tokens to a validation node. The rewards they receive get split between delegators based on the amount they contributed.
How Does Fantom Work?
Fantom functions through the use of three layers that work together. The Opera Core Layer handles consensus, and is where the Validator nodes operate to keep the blockchain secure and immutable. The Opera Ware Layer is the next, facilitating smart contract execution and more. The Application layer is where most people will interact with the system, and is where you can find the APIs and other communication technologies. These systems help to power the fMint, fTrade, and fLEND options.
fMint is one of the best features offered by Fantom. This interface was built to streamline the creation of blockchain assets. You can create regular tokens, NFTs (non-fungible tokens), and many more. The system leverages Fantoms standards to ensure all your creations enjoy full interoperability within the Fantom ecosystem.
Those seeking to trade their tokens can do so on the fTrade DEX. This Decentralized AMM has direct FTM trading pairs to help you save on conversion fees. The non-custodial network offers lower fees and more security compared to CEXs. Users can save on fees by paying using the FTM token.
You can secure passive returns by lending out your crypto to others using fLend. This system leverages large interest-bearing ending pools. Users can contribute to these pools and receive interest upon repayment. These systems have proven to be very effective since the interest obtained from the pool helps to offset any losses.
New crypto users will appreciate the simplicity of the fWallet. This non-custodial wallet provides access to the core processes every crypto user needs including the ability to store, send, receive, and stake. Users can send value to friends and family in seconds internationally using these systems.
FTM is the native utility token for the Fantom network, filling various roles. You can use FTM to send value like a cryptocurrency, as well as paying for fees, and reward distributions.
How Does Solana Work?
Solana leverages a Proof-of-Stake (PoS) blockchain, new cryptocurrency, and other advanced technologies to remain ahead of the competition. The network introduces the concept of Tower BFT to improve the consensus system. The upgrade enables validators to vote on ledger corrections. It also creates a record of the voters.
Solana leverages the Turbine blockchain broadcasting technology to separate data into smaller packets. This structure improves network performance. Currently, Solana has 2.34 block times and has been bench-tested at 50,000 tps using the gulf stream protocol.
SOL is the utility token for the network. It can be staked or used to pay for network functions like smart contract executions. SOL can be found on most major exchanges and is very popular in the market today.
How to Buy Fantom (FTM) and Solana (SOL)
Currently, Fantom (FTM) and Solana (SOL) 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).
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
Fantom Vs. Solana – Speed is the King
When it comes to Fantom (FTM) vs Solana (SOL), it's all about performance. Both of these networks want to be the next game-changing blockchains in the market. It will be interesting to see how the battle for supremacy plays out between these two networks over the coming years. For now, both have growing communities, making them wise to follow moving forward.
To learn more, make sure to visit out Investing in Fantom and Investing in Solana 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