cryptopolitan.com
In a significant move aimed at fortifying the security of its layer-1 blockchain network, the Fantom Foundation has successfully slashed the validator self-staking requirement by a staggering 90%.
This momentous decision comes following a governance vote that concluded in June 2023. Fantom (FTM) has lowered the staking threshold from 500,000 to 50,000 FTM, valued at approximately $19,500 at current market prices.
Fantom Foundation enhances security without compromising performance
The primary objective behind this substantial reduction in staking requirements is to bolster the security of the Fantom network while simultaneously increasing accessibility for individuals interested in becoming validators.
By lowering the barrier to entry, the Fantom Foundation aims to encourage more validators to participate in network operations.
According to the foundation, this move is expected to make it considerably more challenging for malicious actors to launch attacks on the Fantom network. A higher number of validators means more distributed control and a stronger defense against potential threats.
Efficiency and performance improvements
Fantom validators play a pivotal role in the network by bundling and sharing transactions with other validators. Finality in the Fantom network is achieved when at least two-thirds of the network’s validators reach a consensus.
With an increase in the number of validators, submitted transactions will likely reach validators more swiftly due to the larger pool to select from.
One crucial assurance the Fantom Foundation provides is that the surge in validator count will not result in a slowdown of the network. As long as new validators operate using quality hardware, the network’s performance will remain unaffected, maintaining its impressive 1–2 second time to finality.
Staking amount vs. Number of validators
The Fantom Foundation emphasized that reducing staking requirements does not translate to a compromise in security. Validators’ power to confirm transactions is directly proportional to the amount they stake rather than the number of validators they operate.
To illustrate this point, Fantom explained that a 1 million FTM staked validator holds the same transaction-confirming power as twenty smaller validators, each with 50,000 FTM staked.
Fantom currently boasts 58 validators securing its network, as Fantom’s block explorer reported. Ethereum, the largest layer-1 smart contract platform, boasts over 1.1 million validators.
Meanwhile, Cardano, Solana, and Avalanche have reported 2,589, 1,876, and 1,119 validators, respectively, as of a June 2023 report citing Messari data.
A recent security incident
Three months ago, the Fantom Foundation faced a security breach when its official hot wallet was compromised, resulting in a loss of $550,000. However, the foundation swiftly responded to the incident and immediately mitigated potential risks. The stolen amount accounted for less than 1% of the foundation’s funds.
As a commendable gesture, the Fantom Foundation awarded $1.7 million to a security researcher who identified an additional potential risk associated with the hack and promptly alerted the foundation.
This proactive approach helped mitigate what could have resulted in $170 million in damages.