/biz/ - Business & Finance

Fantom may *realistically* challenge Ethereum (especially for DeFi)

Why and how?

Consider the following:

To enable the very possibilities that define "DeFi", projects must ensure their projects are built to interact with each other.

And the majority of this necessary interoperability exists as an intricate web of smart contracts, wallets, interfaces, on-ramps, off-ramps, and a host of other tools and technologies *all built for Ethereum*.

Ethereum is DeFi's platform.

That said, DeFi now needs to scale beyond Ethereum's capacity.

Ethereum is DeFi's limitation.

Vying to address this need are several "Layer-2" solutions, competing projects, and Ethereum 2.0. But inherent to each is greater complexity.

Ideally, the ultimate solution would be to somehow speed up Ethereum's existing architecture WITHOUT adding complexity.

This is where Fantom comes in.

Fantom disentangles and separates "consensus" from "blockchain", creating two distinct layers. (Because "decentralized trust" represents the true core of crypto's promise, while specific blockchain architectures allow for the various of use cases.)

In doing so, Fantom's aBFT ("DAG"), permission-less, fast, scalable, consensus mechanism (Lachesis) operates "below" Ethereum's (or ANY blockchain's) architecture, enabling both a vast improvement today (sub 1 cent fees and <2 second finality) AND a clear upgrade path for the future (at both the consensus AND blockchain layers).

This approach allows any Ethereum project to easily move or expand its existing codebase, interfaces, and other components to Fantom's platform *while maintaining interoperability with other projects*.

Fantom has the "why and how" to address DeFi's limitations.

One more thing: Prior to becoming the most respected man in DeFi, long-time (and current) technical advisor Andre Cronje led Fantom's mainnet development (launched December 2019) with the explicit purpose of scaling Ethereum's architecture.

The "holy shit" moment is coming.