Podcast Summary
In this podcast, Michael Kong, CEO and CIO of the Fantom Foundation, discusses the unique value proposition of Fantom within the blockchain landscape. He highlights Fantom’s speed, scalability, and its recent optimization that has significantly reduced storage requirements and increased transaction throughput. Kong also discusses Fantom’s economic model, the importance of transaction fees, and the future of Fantom in the blockchain market.
Key Takeaways
Fantom’s Unique Value Proposition
- Speed and Scalability: Fantom’s core value proposition lies in its speed and scalability, achieved in a permissionless environment through its consensus mechanism. The recent optimization of its technology stack has resulted in significant reductions in storage requirements and increased transaction throughput, with over 2,000 transactions per second achievable on the Fantom network.
- Ethereum Compatibility: Any application built on Ethereum can be deployed on Fantom, operating in a more efficient and scalable manner. This compatibility is crucial as most smart contract developers are familiar with deploying on Ethereum, which is expected to remain the biggest chain for a long time.
Fantom’s Economic Model
- Transaction Fee Model: The economic model of Fantom’s consensus mechanism is based on approval state, where nodes continuously participate in voting to confirm transactions. Validators receive fees for their participation in the network, with the fees distributed proportionately based on their stake. A portion of the transaction fees goes to the gas monetization program, where developers of popular applications receive a share of the transaction fees generated by their applications.
- Network Sustainability: Economic sustainability for a blockchain is defined by the ability to generate transaction fees and create a network that can handle a high volume of transactions at a low cost. The sustainability of a blockchain network depends on both the technology’s scalability and the demand for popular applications on the network.
Future of Fantom
- Addressing Scalability Issues: The current bottleneck for Fantom’s growth is the scalability of the mainnet and the size of data stored on the chain. However, new technologies like Sonic are being developed to address these issues.
- Exciting Developments: The most exciting thing happening in the Fantom ecosystem is the development of new technology that has exceeded expectations in solving scalability and storage problems. The recent test launch has shown that the network can handle a high volume of transactions and has a much lower time to finality compared to existing technology.
Sentiment Analysis
- Bullish: The overall sentiment of the podcast is bullish. Kong expresses optimism about the initial results of their new technologies and the future of Fantom. He believes that their technology will be a game-changer, allowing for popular applications and large-scale transactions with a great user experience.
- Neutral: Kong acknowledges the current challenges facing Fantom, such as scalability issues and the size of data stored on the chain. However, he also mentions that solutions are being developed to address these issues, indicating a balanced view of the situation.
