The Fantom platform consists of several unique components. The Fantom Opera blockchain serves as the foundation and is an open-source directed acyclic graph network that can run existing smart contracts and create new contracts that interact with contracts on Ethereum, as it is compatible with the Ethereum Virtual Machine.
Lachesis validates Fantom transactions, which is a leaderless Proof of Stake system that utilizes a custom asynchronous byzantine fault-tolerant consensus mechanism. ABFT validation is a faster and less expensive alternative to establishing consensus through Proof of Work or conventional Proof of Stake schemes. ABFT systems can finalize transactions in seconds instead of minutes
Fantom Reduces Staking Requirement by 90%
The self-staking requirement for validators on Fantom’s layer-1 blockchain has been reduced by 90%, as confirmed by the Fantom Foundation.
The governance vote for this change was passed more than six months ago, and the foundation made the changes recently, as per the announcement made on January 15.
The foundation explained that an increase in the number of validators makes it harder for malicious actors to conduct an attack. Validators on Fantom work by bundling transactions and sharing them with other validators.
Finality occurs when at least two-thirds of network validators reach a consensus. With an increase in the number of validators, submitted transactions will reach validators more quickly. The foundation assured that the uptick in validator count will not slow down the Fantom network.
The foundation also clarified that lower staking requirements would not pose a security risk because a validator’s power to confirm transactions is proportional to its staking amount, not the number of validators it runs.
Fantom also added that a validator with 1 Million FTM staked would have the same power as twenty smaller validators, each with 50k FTM staked. FTM price has rebounded due to a bullish market and recovery from two major hacks.
In July, a sell-off of over $130 Million worth of assets on the Multichain network led to a loss of more than 10%. Also, hackers stole over $550,000 worth of crypto on October 17.
Technical Analysis & Prediction of FTM Coin Price
Short-term Fantom price prediction by CoinCodex suggested that the coin would rise to $0.470, but would later decline to $0.3655 during the start of 2024. The technical analysis carried out by the website was bearish, with 17 indicators indicating discouraging signals while 12 forecasted a buy. In the daytime frame, however, the uptrend is broken and the FTM price is trading at the level of $0.387. Moreover, the bulls have taken the support of the 150-Day EMA.
Summary
Fantom Foundation has reduced the self-staking requirement for validators on its layer-1 blockchain by 90%. This change was confirmed on January 15, six months after the governance vote. The increase in validators makes attacks harder. CoinCodex predicts a short-term price rise to $0.470, followed by a decline to $0.3655 in early 2024. Bulls have taken the support of 150-Day EMA.
Technical Levels
- Support Levels: $0.3884 and $0.2795
- Resistance Levels: $0.24391 and $0.5564
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
Source: https://www.thecoinrepublic.com/2024/01/28/fantom-blockchain-staking-requirement-reduced-ftm-bullish-entry/