In the wake of the influx of new chains, populations on Layer 1 and Layer 2 are expanding, bringing upgraded solutions to the blockchain ecosystem. Among these, Fantom, a DAG-based platform, has emerged as a competitive smart contract platform challenging Ethereum.
During TheNewsCrypto’s exclusive interview at the Token 2049 event in Singapore, Fantom Foundation’s CEO Michael Kong revealed the platform’s unique advantages in the dynamic and competitive blockchain space. Kong emphasized that Fantom’s primary focus is on challenging the trends of both EVM and non-EVM ecosystems through new upgrades, and innovating in the GameFi sector.
Fantom Foundation CEO Michael Kong with TheNewsCrypto Chief Strategy Officer Nitin Gupta
In the realm of Layer 1 blockchain, how does Fantom differentiate itself from others, especially amidst the rise of Layer 2 solutions?
Michael Kong (MK): Fantom is indeed a Layer 1 blockchain, and what sets us apart is our commitment to not compromise between performance and security. Many other Layer 1 and Layer 2 solutions sacrifice security for faster transaction times, higher throughput, and lower costs. Our approach aims to minimize performance impacts on security while maintaining a high level of decentralization.
For example, some L1 blockchains create shard chains, which can complicate development as they require managing their own chain and application security. Fantom simplifies this process, allowing developers to focus on building applications while leveraging our ongoing technological advancements to speed up the chain.
Are you claiming that Fantom is more scalable than other blockchains, and is Fantom compatible with Ethereum or planning to become Ethereum-compatible?
MK: Yes, Fantom is compatible with the Ethereum Virtual Machine (EVM). This means that the process of writing and deploying smart contracts on Fantom is similar to Ethereum, using familiar smart contract languages like Solidity or Viper. While maintaining EVM compatibility, we are also developing our own smart contract technology stack to provide significant scalability advantages on the Fantom network.
Developers will continue to deploy contracts in a manner similar to Ethereum but using commands customized specifically for Fantom. Our optimizations in the smart contract stack have made processing faster and drastically reduced over 90% of on-chain storage requirements.
Considering that Layer 2 and EVM both rely on Ethereum as a base, could you explain the main differences between EVM and Layer 2 solutions?
MK: Layer 2 solutions and EVM-compatible chains typically utilize the Ethereum Virtual Machine (EVM). The main difference lies in how Layer 2 solutions connect with Ethereum through bridging or scaling technologies to facilitate asset transfers between the two networks. However, whether it’s an EVM chain or Layer 2, they operate as independent chains, confirming transactions and managing data.
When using Layer 2, you’re not entirely dependent on Ethereum’s security properties but on the security of Layer 2 itself. This means that while L2 interacts with Ethereum, it has its own security measures and transaction ordering, distinguishing it from the Ethereum base layer.
Can Layer 2 be said to rely on the security of Layer 1 while providing scalability?
MK: Layer 2 solutions do not fully rely on Layer 1 security. They submit batches of transactions to Layer 1, which provides some security for these batches, but the internal ordering and security within the batches are determined by Layer 2 itself. Essentially, security and transaction ordering primarily come from Layer 2 rather than Layer 1.
In the rapidly evolving blockchain space, many projects focus on specific areas like NFTs or gaming. What are the main focuses of Fantom?
MK: Fantom is a versatile smart contract platform suitable for various use cases. While it has gained recognition in DeFi, it is versatile enough for applications beyond DeFi. Gaming is an area where Fantom is demonstrating potential. For instance, a game called EstforKingdom recently launched on Fantom quickly became a top game, highlighting the platform’s potential in gaming. Fantom aims to cater to diverse application needs and adapt to evolving trends.
How do you view the development of blockchain games, especially in terms of integrating with traditional games, emphasizing improved user interaction and engagement rather than just profit?
MK: Absolutely! Blockchain games are evolving towards greater user interaction and entertainment, moving away from a singular focus on profit. The power of blockchain games lies in users having true ownership of in-game assets and NFTs. Unlike centralized games, where third parties can censor or seize assets, blockchain games are managed by transparent smart contracts enabling peer-to-peer interactions. This fosters a sense of ownership, freedom, and interoperability, which I believe is the future of gaming.
From the perspective of developers and creators, what challenges and opportunities does blockchain NFTs bring, especially in competition with cheaper alternatives?
MK: Blockchain NFTs offer unique advantages like true ownership, transparency, and interoperability. While anyone can create NFTs, their value depends on market demand and scarcity. Traditional game items have historically sold for significant prices even before blockchain. The key challenge and opportunity lie in creating NFTs that are usable and attractive. Some NFTs may hold value due to scarcity, while others may serve as common assets. Ultimately, the market determines the worth of these digital artifacts.
Interoperability seems to be a significant goal in the blockchain gaming space. How do you envision achieving interoperability in blockchain games without compromising the uniqueness of in-game assets?
MK: Achieving interoperability without compromising uniqueness is indeed a challenge. However, blockchain NFT standards allow for interoperability without sacrificing uniqueness. Not all NFTs need to interact with every game or smart contract. Developers can design NFTs to interact specifically with compatible smart contracts or games while maintaining their uniqueness. The key is striking the right balance where NFTs can be used across multiple games while preserving their distinctiveness.
What are Fantom’s future plans, and what can our readers expect?
MK: Fantom’s future focus is on rolling out our new smart contract technology to enhance scalability and performance. We’ve already made significant improvements in storage size and throughput on the mainnet. Our goal is to provide a highly scalable platform where popular applications, including games, can operate smoothly without scalability issues. Users and developers can expect a more efficient and developer-friendly Fantom network in the coming months.
Disclaimer: The information provided in this interview article is for informational purposes only. It is not intended to provide investment advice, financial guidance, or recommendations for specific decisions. Readers are encouraged to conduct their own research.
