There are at present over 20,000 blockchain initiatives in the marketplace, every competing with the others to realize market share and dominance. And Because the onset of the crypto bear market, the value of those tokens have tanked throughout the trade.
For now, Fantom is among the many comparatively better-known chains. Its FTM token (No. 67 by market cap) is down 93% since its all-time excessive of $3.46 on October 28, 2021, and at present buying and selling at $0.22, based on CoinGecko.
However the down market and crowded discipline of competitors haven’t deterred the CEO of Fantom Basis’s hope for the long run.
“Competitors is sweet as a result of it will probably get you a greater outcome, higher expertise,” Fantom Basis CEO Michael Kong instructed Decrypt at Chainlink SmartCon in New York this week, including that as a result of crypto customers have gotten used to utilizing a couple of blockchain, a number of chains will survive into the long run.
“I feel sooner or later, you may not have 20 or 30 completely different chains… however I feel you may have just a few chains on the market, and I feel they’ll get a big market share,” Kong mentioned. “Individuals use a number of completely different blockchains, that is the case at the moment, and I feel that may proceed to be the case into the long run.”
Launched in December 2019, Fantom is a layer-1 blockchain aiming to offer a substitute for the excessive prices and low speeds Ethereum customers typically complain about and hoped that the now-completed Ethereum merge would resolve. Layer-1 protocols like Bitcoin, Ethereum, and Solana make the most of their very own blockchain, permitting decentralized purposes to be constructed atop their protocol.
On September 15, Ethereum accomplished its long-awaited transition from the energy-intensive proof-of-work consensus algorithm to the extra environmentally pleasant proof-of-stake consensus mechanism.
However ETH is down 320% since then, and Kong believes many within the Ethereum neighborhood did not fairly perceive what the merge would imply.
“I feel lots of people have been anticipating, wrongly, in the neighborhood, that the Ethereum merge would considerably enhance community throughput or considerably make the expertise much more scalable. However the Ethereum Basis repeatedly got here out and mentioned no, the aim of the merge is to mainly take away the proof-of-work element of the chain.”
For Kong, the misconceptions surrounding the merge had extra to do with the neighborhood’s pleasure and fewer with any mistake by the Ethereum Basis in managing expectations.
The merge was “not about growing scalability, not about lowering gasoline charges dramatically,” Kong mentioned, regardless of what Ethereum flag-wavers might need hoped. Any disappointment individuals have within the aftermath “wasn’t actually the fault of anybody, particularly, or the Ethereum Basis, who have been simply telling individuals the reality,” he added.
And as for a way Fantom can compete with Ethereum and different chains? “We nonetheless have our aggressive benefit, at the very least in the interim, in terms of our means to course of transactions asynchronously,” Kong mentioned.
What considerations him most shifting ahead is the alarming recent rhetoric from regulators. “I feel the massive unfavorable in the intervening time is the regulatory uncertainty,” he mentioned. “I feel that is what’s scaring lots of people [in the industry].”
Kong pointed to the latest actions of the SEC, which claimed that every one Ethereum transactions fall below U.S. jurisdiction, and the CFTC, which sued Ooki DAO and its founders final week.
“To me, the regulatory uncertainty about who’s supposed to manage what, just like the SEC and the CFTC publicly disputing with each other, is actually what might damper innovation, and actually trigger individuals to assume twice about blockchain expertise and never need to get into any hassle,” he mentioned. “And so it type of has a little bit of a chilling impact on the trade.”
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