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Understanding Fantom's Sonic Upgrade

Fantom, lauded for its ultra-fast transaction speeds, is bringing high-speed action to a whole new level with its Sonic upgrade. This is more than just a technical adjustment though, it’s a deep rework meant to fundamentally reset the entire network’s purpose and potential to greatly enhance performance and possibilities. The Sonic upgrade aims to solve some of the biggest challenges facing blockchain technology today: speed, scalability, and cost.

About that combat though, it’s much improved due to a few major factors. Sonic’s unique consensus mechanism, called Lachesis, improves efficiency by prioritizing transaction validation based on their importance. This results in increased security and improved efficiency. The unique architecture is built to scale with an exponential number of transactions while maintaining top speed and security. This paves the way for Fantom to engage in true competition against traditional payment processors such as Visa.

Sonic is completely compatible with today’s Ethereum Virtual Machine (EVM)-based infrastructure, tools, and of course contracts. This is a game-changer for developers. It means they can easily move their decentralized applications (DApps) to the Fantom network without having to rewrite their code. This frictionless transition attracts more developers to create on Fantom, diversifying and enhancing the ecosystem.

The Need for Speed: Comparing Fantom to Ethereum

In the ever-evolving world of blockchain, timing is critical. Bitcoin and Ethereum have led the charge toward this world of decentralized finance (DeFi). Too often, they encounter issues such as slow transaction speeds and high costs, especially during peak times. Fantom addresses these issues head-on. Fantom’s transaction finality speed is quite consistent at 1-2 seconds, which makes it a great fit for applications that need real-time responsiveness.

Ethereum, by contrast, only processes ~15-30 TPS on its base layer. Layer 2 solutions like Optimism have gone a long way in addressing this, but even they can’t compete with Fantom’s finality speed. Fantom’s blockchain can handle thousands of transactions per second within that same 1-2 second window. This delta is no small matter, particularly for DeFi applications where speed and cost-effectiveness in transactions are paramount.

The effect of this greater speed is pretty profound. Where it would take multiple minutes to clear a transaction on Ethereum or Bitcoin, Fantom clears transactions in two seconds. Fantom’s developers claim that the new Sonic upgrade has cut this time to just under a second. Compared to Ethereum, Fantom has a greater speed advantage. This makes it a compelling option for users and developers who are looking for a quicker, more effective blockchain experience.

DeFi Yields: Opportunities with Fantom's Sonic

This UX improvement through the Sonic upgrade goes beyond just speed. It unlocks new opportunities for higher DeFi yields. Through a protocol called Sonic, the platform increases transaction speeds while decreasing associated costs. This dramatically simplifies the process of taking part in DeFi activity across the Fantom network and increases earning potential!

Through Sonic, users can experience higher DeFi yields on Fantom. This directly converts to larger returns on investments, with many such opportunities going as high as 90% APY. The increased yields can bring in more liquidity to the Fantom ecosystem. This creates greater liquidity for users to enter and exit positions, lowering the risk of impermanent loss. Sonic Fantom’s Sonic ecosystem offers an alternative, effective, scalable infrastructure for DeFi Applications. Its high-performance network and low fees make it an appealing option for developers. This allows for faster and cheaper transactions.

Don’t forget when yields are higher, it’s usually because there’s more risk. These risks may consist of exposure to underlying farmed token price volatility, smart contract risks and possible impermanent loss. Maximized yield farming will allow investors to increase their earnings significantly. Through implementing some powerful tactics such as Silo V2 Loop Lending, Euler + Rings Protocol, Shadow DEX Liquidity Provision.

Getting Started with Fantom: A Practical Guide

Here’s a step-by-step guide to get you started:

  1. Open an account: Find a cryptocurrency exchange that supports Fantom (FTM) and open an account. This usually takes just a few minutes.
  2. Choose a Fantom wallet: Select a wallet to store, send, and receive FTM tokens. The Fantom wallet’s user interface provides streamlined access to all parts of the Fantom ecosystem.
  3. Buy Fantom (FTM): Purchase FTM tokens on major cryptocurrency exchanges like Kriptomat.
  4. Stake FTM tokens: Stake your FTM tokens to a validator for a period, like 365 days, to earn a reward. You can earn a reward equivalent to a 13% annual percentage yield.
  5. Use fLend: Lend FTM and fUSD to the Fantom liquidity pool through fLend to earn interest.

Key Benefits of Fantom's Sonic

Here is a summary of the key benefits of Fantom's Sonic upgrade:

  • Enhanced Consensus Mechanism: Lachesis optimizes transaction validation, improving both security and efficiency.
  • High-Performance Architecture: Designed to handle high transaction volumes without compromising speed or security.
  • EVM Compatibility: Allows developers to smoothly transition and port their DApps without altering codebases.
  • Reduced Node Storage Needs: Testnets have shown up to 90% reduction in storage needs for validators compared to the Opera mainnet.
  • Cost Efficiency: Up to 96% reduction in costs for operating large-scale RPC nodes, and 10x faster node synchronization compared to Opera.

Fantom’s Sonic upgrade is just the latest example of how to push blockchain technology forward. Regardless, Fantom is positioning itself as an alternative to top crypto players. It achieves this by making transactions faster, cheaper and expanding the scope of the DeFi landscape. As always, do your own research before investing in any cryptocurrency or DeFi platform. Do your due diligence and know what you’re getting into!