Do you know what are the differences between Fantom and Solana? Read the full article to know details.
Solana vs Fantom: Identifying the Main Differences
Speed, security, and decentralization are chief elements that blockchain technology brings to the table in the financial industry. From the investor standpoint, learning more about potentially profitable assets is always the right call. So let’s review seemingly similar projects — Fantom and Solana. This way, you will find out the difference between them and decide which one is a better trade via an anonymous cryptocurrency exchange.
What Do We Know About Fantom?
Fantom is an open-source, Ethereum-compatible platform for decentralized applications (dApps). It was founded by Dr. Ahn Byung Ik in 2018, and its native coin is FTM. Fantom doesn’t use blockchain technology. Instead, the platform uses a directed acyclic graph (DAG) with vertices and edges instead of blocks. Fantom also employs the Asynchronous Byzantine Fault Tolerance (ABFT) consensus algorithm called Lachesis. It enables the processing of transactions in a particular order.
The Lachesis consensus mechanism requires users to have 500,000 FTM tokens to become a validator node. There are around 90 validators in the network as of May 2022. The current throughput of Fantom stands at only eight transactions per second (TPS) because of the small number of validators and Ethereum Virtual Machine (EVM) that Fantom leverages.
Users can stake FTM using MetaMask or the official wallet of the platform — Fantom Wallet. You can expect to earn up to 13.8% annual APY.
A Look at Solana
Solana is an open-source blockchain that aims to solve scalability issues through increased transaction speed. The project was founded by Anatoly Yakovenko in 2017. It employs a consensus mechanism called Proof-of-History (PoH) that creates a record of financial operations with time stamps indicated.
In the Solana ecosystem, new transactions are sent through a verifiable delay function (VDF). Besides, the platform uses a well-established SHA256 hash function. Solana network has 1,784 validator nodes as of May 2022. This number tends to fluctuate over time. Nowadays, Solana is one of the fastest cryptos on the market, with a 400 milliseconds block time and an average TPS rate of 3,000.
SOL is a native token of the Solana network. The PoH consensus mechanism allows users to stake SOL starting from the minimum amount of about 0.01 SOL. The most popular wallets that you can use to stake SOL are Exodus, Phantom, and Atomic wallets. The annual yield for Solana is 7%.
FTM vs SOL: Key Differences
Let’s make an FTM vs Solana head-to-head comparison to understand the pros and cons of each coin better.
|Main Characteristics||Fantom (FTM)||Solana (SOL)|
|Market capitalization||$1 billion||$15 billion|
|Structure||DAG smart contract platform||Decentralized blockchain|
|Average trading fee||$0.0000001||$0.00025|
|Current supply||2.55 billion tokens||339 million tokens|
|Supply limit||3.175 billion tokens||Does not have a fixed limit|
The first thing that you might have noticed is the difference in TPS. With the PoH mechanism and high throughput network, Solana priorities speed to a higher degree than Fantom. Moreover, Solana has a bigger market cap meaning that this crypto definitely not going to leave the market soon. Besides, the blockchain doesn’t have a supply limit but still has a token burn mechanism.
When it comes to transactions, the only edge that FTM has over SOL is close to zero trading fees. Still, from the investor’s standpoint, Fantom’s fixed supply limit is a beneficial aspect. It predicts the rise in price once all the tokens are mined.
Things in Common for Solana and Fantom
Both Solana and Fantom can be used for creating dApps and developing smart contracts. Their tokens fall under the ERC20 standard, meaning they are stackable, blockchain-based assets. Moreover, Solana and Fantom have proprietary custody wallets, which makes them less dependent on central entities for security.
Which One Is a More Attractive Investment Option?
Fantom and Solana are interesting projects with their vision of the future of finance. Solana has been the everyday crypto for many users due to its speed. However, Fantom is still a project on the rise with good prospects for long-term investors. Both coins are worth your attention and can be valuable additions to your crypto portfolio.
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