Blockchain technology has undoubtedly revolutionized the way we conduct financial transactions. However, Fantom co-founder Andre Cronje believes that the current state of blockchain technology is outdated and in need of a significant upgrade. In an interview with Decrypt, Cronje expressed his desire to give blockchain technology a much-needed facelift, stating that it is "stuck in the eighties." He emphasized that during that era, the internet and technology were predominantly used for financial applications because digitizing financial transactions made economic sense. However, with today's technological advancements, the cost of such transactions has decreased significantly, making blockchain technology inefficient for financial purposes. Cronje pointed out that networks like Ethereum and Bitcoin are slower and more expensive, especially during the rise of Ordinals. To address these issues, Cronje and his team have developed a key upgrade to Fantom's tech stack called Sonic, which is optimized for speed.
The Need for Speed: Introducing Sonic
Fantom, a layer 1 blockchain network, aims to improve transaction speeds and reduce costs when using internet coins. Launched in 2019 after raising $40 million, Fantom operates using a variation of the proof-of-stake consensus mechanism called Lachesis and is compatible with Ethereum. However, Cronje believes that Sonic will take Fantom to new heights. According to Cronje, Sonic will speed up Fantom by another 65x, making it easier to launch a node and slashing the storage costs for network nodes. The ultimate goal is to lower the barrier for everyday users to secure the network. Cronje is confident that Sonic will make Fantom a top-tier blockchain network in every metric.
The Cost of Entry
While the promise of Sonic's improvements is enticing, there is a cost associated with accessing its benefits. Users who wish to take advantage of Fantom's upgraded technology will need to stake a hefty 50,000 native FTM tokens, which equates to approximately $11,222 at today's prices according to CoinGecko data. Despite this requirement, Cronje remains optimistic that Sonic will attract credit card companies and international banks as its ideal clientele. He revealed that his team is already engaging in multiple conversations with such firms, albeit without mentioning specific names.
The Urgency for Change
Cronje's dissatisfaction with the current state of blockchain technology is based on its slow, unscalable, and expensive nature. He draws a parallel between the outdated technology of the past, such as 56k dial-up and 486 processors, and the current limitations of blockchain technology. Institutions have moved on from outdated technology for a reason, and Cronje believes that blockchain technology needs to catch up to meet the demands of modern applications.
In conclusion, Andre Cronje and his team at Fantom are aiming to revolutionize blockchain technology with their latest upgrade, Sonic. By optimizing for speed, Fantom hopes to address the shortcomings of current blockchain networks such as slow transaction speeds and high costs. While there is a significant upfront cost to access the benefits of Sonic, Cronje remains optimistic that credit card companies and international banks will be attracted to Fantom's upgraded technology. The need for change in blockchain technology is evident, and Cronje's efforts with Sonic may just be the facelift that the industry needs to usher in a new era of efficiency and scalability.
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