Fantom vs Hedera | Which is Better? - OnChainUpdates

Today we bring you another battle of the blockchains and this time round it is between two of the most prominent decentralized layer 1’s, Fantom vs Hedera. We look into how they scale, their speeds, security and more to help you decide which blockchain to use and invest in.

Fantom vs Hedera

Fantom

Fantom Logo

Fantom is a well known layer 1 blockchain built for its decentralization, speeds and low transaction fees. Powered by a consensus algorithm called Lachesis which allows Fantom to handle high levels of transactions at a very low cost, this enabled Fantom to quickly rise to fame and be put in the same category as other “Ethereum Killers” such as Solana and Avalanche.

Transaction Speeds

Through Fantoms proof of stake (POS) consensus algorithm which they have named Lachesis, Fantom is able to process up to 10,000 transactions per second which places it in the upper ranks of the fastest layer 1 blockchains on the market.

Compare this to Ethereums 15 transactions per second you can see that Fantom is a vast improvement and is very impressive when it comes to transaction speeds. Match this with low transaction fees and Fantom is a very high performance and cheap layer 1 blockchain.

Transaction Fees

As Fantom runs of a proof of stake consensus algorithm fees are paid to the validators that are securing the network and enabling it to perform at a high rate. Validators can have a large number of stakers helping to make up the validator, the transaction fees paid to the validator are then divided up between the stakers.

When a transaction is made it requires processing power which reflects the energy consumed, due to Fantom running a very low energy consensus mechanism the fees for making transactions are a lot cheaper than alternative layer 1s such as Ethereum.

Phantoms transaction fees do fluctuate a little bit depending on factors such as network load however you can expect to pay an average of around $0.01 per transaction. This places Fantom right in the upper ranks of the cheapest and lowest energy layer 1 blockchains.

Team

The team behind a project can either make or break it, luckily in Fantoms case the team working behind the scenes have a wealth of experience in distributed ledger technology and blockchain experience.

Fantom is run by co-founders Michael Kong and Dr. Ahn Byung Ik, the team is also backed by a range of high profile investors and advisors including Bill Tai a serial entrepreneur and Blockchain investor Mike Novogratz.

Ecosystem

Fantom has a thriving DeFi ecosystem with a wide range of dApps that experienced their own mini bull run during 2021, this was in part due to one of Fantoms core contributors Andre who built protocols such as Yearn Finance.

Andre retired from developing on Fantom which caused a lot of unnecessary FUD however lately there have been rumors of him returning which would be a huge net positive for Fantom and its ecosystem.

Due to Fantoms fast transactions and low fees its DeFi ecosystem grew rapidly attracting swarms of keen investors giving the chain a total value locked (TVL) of $8 billion at its height in 2022, this placed Fantom in the upper ranks of largest blockchains via TVL.

Fantom TVL via DeFiLlama

Hedera

Hedera Logo

Hedera is a decentralized blockchain design to help users securely and efficiently create, store, and transfer data and value. Hedera is an enterprise grade public network that gives the users complete control over their own dApps and data while maintaining a high level of security and energy efficiency.

Hedera offers a range of services on the network such as token creation for fungible and non-fungible tokens such as NFTs, a consensus service which allows users to track assets on a supply chain, IP rights, identity credentials and more, and smart contract creation which is deployed in Solidity and Vyper.

Hedera Network Services

Transaction Speeds

While Hedera allows very fast transaction speeds for its native cryptocurrency HBAR only approved nodes are allowed to participate in approving transactions, this is quite different to other networks such as Fantom where there is a wide range of nodes that majority of users can participate in if they wish.

While this method of processing transactions is new it seems to be gaining traction as a few big names such as IBM and Boeing plan to act as nodes within the network.

Hedera uses its own unique process of grouping transactions which are called hashgraphs to process transactions much faster than most blockchain alternatives. While most blockchains nodes propose blocks to be added to the chain, Hederas nodes all communicate with each other to process transactions at speeds and it batches.

Hedera can process upwards of 10,000 transactions per second and a finality of just 3-5 seconds all while maintaining a high level of security and stability.

Transaction Fees

With Hedera being an enterprise grade blockchain offering multiple services such as token creation, smart contracts, file management and more the fee structure can get fairly confusing and it is relatively in depth, so for this articles sake we are going to go just of the fees to transfer crypto as that is the fee we mentioned for Fantom earlier.

Hedera has possibly the lowest fees of all blockchains boasting just $0.0001 per transaction.

Team

Hedera is founded by Pradeep Iyer who has a 4 decade history with entrepreneurship and startups, while Hedera is run by vice president Tasker Generes who has a deep history in IT and enterprise level infrastructure.

Ecosystem

With Hedera making it easy for users to create and control their own tokens, dApps and smart contracts Hedera has grown a thriving ecosystem that allows users to access financial services without relying on centralized systems.

While Hedera may not have a DeFi ecosystem as large as Fantoms by TVL it does have a more stable TVL still maintaining a steady uptrend even during the current bear market, Hederas TVL is currently sitting at $26 million.

Hedera TVL via DeFiLlama

While Hedera may not have a TVL as high as other blockchains such as Fantom, Hedera does have many more enterprise clients using the blockchain such as LG and a governing council that includes the likes of Google and IBM.

Does Hedera Have Potential?

Yes, most definitely. Hedera fills in the need for an enterprise level blockchain which is perfect for higher level applications and with the backing of big names such as Google and IBM Hedera could definitely be the blockchain that larger projects build on.

Is Google Involved In Hedera?

Yes. Google is on the governing council of Hedera alongside other big names such as IBM, LG and Ubisoft.

Today we bring you another battle of the blockchains and this time round it is between two of the most prominent decentralized layer 1’s, Fantom vs Hedera. We look into how they scale, their speeds, security and more to help you decide which blockchain to use and invest in.

Fantom vs Hedera

Fantom

Fantom Logo

Fantom is a well known layer 1 blockchain built for its decentralization, speeds and low transaction fees. Powered by a consensus algorithm called Lachesis which allows Fantom to handle high levels of transactions at a very low cost, this enabled Fantom to quickly rise to fame and be put in the same category as other “Ethereum Killers” such as Solana and Avalanche.

Transaction Speeds

Through Fantoms proof of stake (POS) consensus algorithm which they have named Lachesis, Fantom is able to process up to 10,000 transactions per second which places it in the upper ranks of the fastest layer 1 blockchains on the market.

Compare this to Ethereums 15 transactions per second you can see that Fantom is a vast improvement and is very impressive when it comes to transaction speeds. Match this with low transaction fees and Fantom is a very high performance and cheap layer 1 blockchain.

Transaction Fees

As Fantom runs of a proof of stake consensus algorithm fees are paid to the validators that are securing the network and enabling it to perform at a high rate. Validators can have a large number of stakers helping to make up the validator, the transaction fees paid to the validator are then divided up between the stakers.

When a transaction is made it requires processing power which reflects the energy consumed, due to Fantom running a very low energy consensus mechanism the fees for making transactions are a lot cheaper than alternative layer 1s such as Ethereum.

Phantoms transaction fees do fluctuate a little bit depending on factors such as network load however you can expect to pay an average of around $0.01 per transaction. This places Fantom right in the upper ranks of the cheapest and lowest energy layer 1 blockchains.

Team

The team behind a project can either make or break it, luckily in Fantoms case the team working behind the scenes have a wealth of experience in distributed ledger technology and blockchain experience.

Fantom is run by co-founders Michael Kong and Dr. Ahn Byung Ik, the team is also backed by a range of high profile investors and advisors including Bill Tai a serial entrepreneur and Blockchain investor Mike Novogratz.

Ecosystem

Fantom has a thriving DeFi ecosystem with a wide range of dApps that experienced their own mini bull run during 2021, this was in part due to one of Fantoms core contributors Andre who built protocols such as Yearn Finance.

Andre retired from developing on Fantom which caused a lot of unnecessary FUD however lately there have been rumors of him returning which would be a huge net positive for Fantom and its ecosystem.

Due to Fantoms fast transactions and low fees its DeFi ecosystem grew rapidly attracting swarms of keen investors giving the chain a total value locked (TVL) of $8 billion at its height in 2022, this placed Fantom in the upper ranks of largest blockchains via TVL.

Fantom TVL via DeFiLlama

Hedera

Hedera Logo

Hedera is a decentralized blockchain design to help users securely and efficiently create, store, and transfer data and value. Hedera is an enterprise grade public network that gives the users complete control over their own dApps and data while maintaining a high level of security and energy efficiency.

Hedera offers a range of services on the network such as token creation for fungible and non-fungible tokens such as NFTs, a consensus service which allows users to track assets on a supply chain, IP rights, identity credentials and more, and smart contract creation which is deployed in Solidity and Vyper.

Hedera Network Services

Transaction Speeds

While Hedera allows very fast transaction speeds for its native cryptocurrency HBAR only approved nodes are allowed to participate in approving transactions, this is quite different to other networks such as Fantom where there is a wide range of nodes that majority of users can participate in if they wish.

While this method of processing transactions is new it seems to be gaining traction as a few big names such as IBM and Boeing plan to act as nodes within the network.

Hedera uses its own unique process of grouping transactions which are called hashgraphs to process transactions much faster than most blockchain alternatives. While most blockchains nodes propose blocks to be added to the chain, Hederas nodes all communicate with each other to process transactions at speeds and it batches.

Hedera can process upwards of 10,000 transactions per second and a finality of just 3-5 seconds all while maintaining a high level of security and stability.

Transaction Fees

With Hedera being an enterprise grade blockchain offering multiple services such as token creation, smart contracts, file management and more the fee structure can get fairly confusing and it is relatively in depth, so for this articles sake we are going to go just of the fees to transfer crypto as that is the fee we mentioned for Fantom earlier.

Hedera has possibly the lowest fees of all blockchains boasting just $0.0001 per transaction.

Team

Hedera is founded by Pradeep Iyer who has a 4 decade history with entrepreneurship and startups, while Hedera is run by vice president Tasker Generes who has a deep history in IT and enterprise level infrastructure.

Ecosystem

With Hedera making it easy for users to create and control their own tokens, dApps and smart contracts Hedera has grown a thriving ecosystem that allows users to access financial services without relying on centralized systems.

While Hedera may not have a DeFi ecosystem as large as Fantoms by TVL it does have a more stable TVL still maintaining a steady uptrend even during the current bear market, Hederas TVL is currently sitting at $26 million.

Hedera TVL via DeFiLlama

While Hedera may not have a TVL as high as other blockchains such as Fantom, Hedera does have many more enterprise clients using the blockchain such as LG and a governing council that includes the likes of Google and IBM.

Does Hedera Have Potential?

Yes, most definitely. Hedera fills in the need for an enterprise level blockchain which is perfect for higher level applications and with the backing of big names such as Google and IBM Hedera could definitely be the blockchain that larger projects build on.

Is Google Involved In Hedera?

Yes. Google is on the governing council of Hedera alongside other big names such as IBM, LG and Ubisoft.

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