What is Fantom? FTM, Sonic and how the chain works
Fantom is an EVM-compatible layer-1 blockchain whose FTM token pays gas fees and secures the network through staking. It began migrating to Sonic in 2024.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
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The network is built for fast finality and compatibility with Ethereum tools.
What is FTM used for?
FTM is the native asset of the Fantom network. The list below shows its main jobs.
- It pays gas fees for transactions and smart contracts.
- It secures the chain when holders stake it with validators.
- It carries voting power in governance decisions.
How does Fantom work?
Consensus decides the order of transactions and how quickly they settle. Fantom built its own approach to avoid the delays of a purely linear chain.
Fantom orders transactions with Lachesis, its consensus protocol. Lachesis is an asynchronous Byzantine fault tolerant protocol, so it can agree on order even if some participants fail. It uses a directed acyclic graph, or DAG, to reach fast finality.
How is Fantom different from Ethereum?
Both Fantom and Ethereum run smart contracts, so developers can often reuse code. The main difference is how each network orders and agrees on transactions.
Who created Fantom and what happened?
Fantom was founded in 2018 by Ahn Byung Ik. The Opera mainnet launched in December 2019, and the migration to Sonic began in 2024. In 2023, the Multichain bridge exploit hit Fantom assets, and the Fantom Foundation reported a separate wallet hack. The SEC's 2023 lawsuits against major exchanges did not name Fantom.
Frequently asked questions
No. Fantom is the older network and FTM token, while Sonic is its successor with its own S token.
Wallets that support EVM networks often add FTM and Sonic. Check the wallet's documentation before you move funds.
US residents can usually use public blockchains, but state rules and taxes depend on activity. The IRS treats crypto as property.
The Fantom Foundation has rebranded as Sonic Labs, which supports the Sonic network. It does not control every app on the network.
