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Mimo Protocol Is Now on Fantom

Businesses and consumers are making more digital currency payments than ever before. As per a Visa Inc survey, about a quarter of small businesses around the globe plan to integrate digital currency payments into their systems in 2022.

The Visa study further reveals that 13% of consumers from countries such as Brazil, Canada, the US, and Singapore expect businesses in their locales to offer crypto payments options. The Visa network survey also suggests that cryptocurrency may achieve mainstream use in these countries.

The world’s largest card payments network also surveyed small business owners in Hong Kong, the UAE, Brazil, and Singapore. Visa found out that 30% of merchants in these regions were placing systems in motion to support digital currency payments.

The electronic payments network further says that 75% of all businesses worldwide have come to terms that new forms of payments are vital to business development and growth. Therefore, accepting cryptocurrency payments is part of business evolution, and companies that fail to adapt will die.

For this reason, both Mastercard and Visa are rolling out their crypto support systems. Visa has its eyes set on USD coin transaction settlements in partnership with Crypto.com. Visa says that its customers transacted over $2.5 billion of crypto payments via its crypto-linked cards in their latest earnings reports.

In mid-2021, their crypto-linked card had supported $1 billion worth of crypto payments. Visa’s crypto card links users to 65 wallet partners, including BlockFi, Coinbase, and Circle. Merchants that accept the card now number 100 million.

Consumers are making more stablecoin payments.

BitPay Inc, the world’s biggest digital currency payment processing network, says that consumers are making fewer and fewer BTC payments. Instead, as per their latest data, more consumers are turning to crypto coins such as Doge, stablecoins, and Ether for their purchases.

BTC payments on the BitPay network fell by 65% from a 92% high in 2020. In contrast, ETH facilitated 15% of BitPay’s payments. Litecoin, Shiba Inu, and Dogecoin holders contributed 3% of BitPay payment volumes.

Stablecoins payments are taking over, facilitating 13% of all payments on the BTC payment service provider network. Stablecoins are particularly popular with cross-border payments due to their steady rock value.

The Mimo and PAR use case

BTC holders are making fewer crypto purchases, yet their crypto-assets are the most popular and widely accepted cryptocurrency. As per a PYMNTS study, over 46 million US consumers are prepping to make crypto payments as Visa, Mastercard, and PayPal integrate digital currencies on their networks. Furthermore, PYMNTS says that, as per their analysis, crypto owners have a high level of comfort with crypto payments.

This comfort is also felt by consumers that have never invested in cryptocurrencies. At least 59% of US adults that have never owned digital currencies are interested in making crypto purchases. That said, the digital economy analysis network warns that crypto volatility could jeopardize this rising adoption. While you can buy much more with crypto than ever possible before, BTC and ETH, the world’s most popular crypto assets, are super volatile. To illustrate this point, BTC plunged to the $35,000 mark in 2022, despite starting the year at $45,000.

A month earlier, the king of cryptocurrencies was worth over $50,000. It follows then that a business that accepts a $10,000 BTC or ETH payment could have its profit obliterated a few days later. What’s more, it has become nearly impossible to make sensible BTC or ETH payments on ordinary items.

The Ethereum network’s gas fees range between $1.6 to $70. BTC transaction costs vary $1.8 to $62. These costs depend on the transaction size, so a cup of coffee at Starbucks that goes for $3 will incur an extra $1.8 gas network fee.

The massive spread fee is a common attribute of Proof of Work networks. Their consensus algorithms function like congested highways that charge extra toll charges during rush hour. As a result, BTC is a much better store of value than a medium of exchange.

Consequently, as per Glassnode data, HODLers are no longer willing to part with their precious digital gold. Despite the recent sell-off craze, 15,931 BTC addresses held a BTC balance higher than 100 coins on January 22, 2022. In comparison, 16,220 BTC wallets had the same number of tokens two years earlier.

For this reason, most users are turning to stablecoins for their cryptocurrency payments. Stablecoins such as PAR are key to digital currency payments mass adoption. Functioning much like fiat cash, they are stable and therefore a better choice for spending purposes, mimicking cash payments.

Ethereum has first-mover advantages in stablecoin development. To illustrate this point, in 2016, the stablecoin project count was 11. Most of these tokens were either USD or gold-backed coins, led by Tether.

Since then, more stablecoin projects have made their market entrance. There are now over 66 stablecoins and hundreds more in development. While Ethereum was the premier stablecoin development network, new projects have flipped the script.

Only 50% of existing stablecoin projects run atop the Ethereum blockchain, with blockchains such as EOS joining the ranks of stablecoin blockchains. Why is the stablecoin market shifting? Ethereum network can no longer assure stablecoin projects of scalability and project differentiation.

For this reason, the Mimo Protocol and PAR, the world’s first stablecoin project that algorithmically tracks the value of the Euro, is now on Fantom. PAR is integrating the Fantom blockchain to ensure that it can support high speed and volume transactions.

Fantom will ensure that the Mimo Protocol achieves scalability and Fantom’s other on-chain benefits. In addition, PAR’s Fantom integration will make it Web 3.0 ready as a scalable cross-chain compatible stablecoin network.

The Fantom advantage

The Mimo Protocol and its native stablecoin PAR are Ethereum based. Ethereum has massive on-chain support, and its ERC-20 development ecosystem is easy to access. Ethereum projects are also interoperable with most wallets.

Fantom, on the other hand, is a unique blockchain network. It is a layer one smart contract blockchain platform whose robust protocols are compatible with the Ethereum Virtual Machine.

Unlike other blockchain platforms such as Ethereum or Bitcoin that function as per blockchain technology’s older protocols, Fantom has made a break from that inefficient past. Instead, it has embraced blockchain technology protocols that can scale with use.

Consequently, it is one of the cheapest and fastest blockchain networks in the market. Fantom can settle transactions in a second via its 8 TPS rate. In contrast, Ethereum’s transaction speed averages 15 seconds to an upper-level range of 5 minutes per network congestion level. Fantom transactions fees are also ultra-cheap. They are 300 million times lower than Ethereum’s.

Moreso, Fantom’s ecosystem is flourishing. The Fantom blockchain transaction rates have now surpassed Ethereum’s. As per the Fantomscan, the network had 1.2 million transactions on January 30, 2022, as more investors sought affordable, high-yielding farm earning avenues. In contrast, Etherscan results show that Ethereum had 1.1 million transactions on that day.

Fantom is winning in the transactions field and value locked in DeFi protocols. It now has the fifth-largest DeFi ecosystem in terms of total value locked. A month ago, Fantom had the eighth-highest total value locked in its protocols.

This massive growth is a sign of the increasing developer activity on its network. Projects such as the Mimo Protocol and its native stablecoin, the PAR token, can leverage Fantom’s scalable smart contracts platform for development. Fantom now has over $8.7 billion of value locked in the 129 DeFi projects that run on its network.

But that is not all there is to this formidable blockchain network. Fantom’s native token FTM is one of the few crypto assets that enjoyed relatively stable prices during the latest crypto markets downtrend.

As larger crypto assets values bowed to the massive headwinds, FTM joined a small pocket of cryptocurrencies that held on to their performance. Consequently, FTM has joined the “FOAN trade” pocket of assets alongside ONE, ATOM, and NEAR. The FOAN crypto assets are scooping up massive liquidity from the dormant crypto native capital, and their performance could persist in the future.

Why the Mimo Protocol is now on Fantom

First, Fantom is one of the few blockchain protocols that sufficiently conquer the ‘blockchain trilemma’ expressed by Vitalik Buterin. The Bitcoin and the Ethereum blockchains are highly secure but not easily scalable.

Fantom has high security, scalability, and decentralization metrics due to its customizable modular architecture. Fantom blockchain protocols include the Lachesis consensus algorithm (LCA), Directed Acyclic Graph (DAG), and the Fantom Virtual Machine (FVM).

Directed Acyclic Graph (DAG)

The Directed Acyclic Graph (DAG) is a data structuring tool. Unlike blockchain technology that forms blocks, DAG creates edges and vertices. Therefore, all DAG transaction data takes the form of linked vertices that the Fantom protocols submit to its nodes.

Consequently, Fantom ledgers have a graphical rather than block-like look. DAG promotes decentralization and scalability since its nodes do not compete to mine new blocks as it is with BTC or ETH miners.

In the absence of time and energy-wasting mining, Fantom nodes validate all network transactions simultaneously as long as they reference a previous transaction to ensure data security and immutability.

Lachesis Consensus Algorithm (LCA)

The Lachesis Consensus Algorithm (LCA) is Fantom’s consensus model. Lachesis is a modified Proof of Stake protocol based on the Asynchronous Byzantine fault tolerance (ABFT). ABFT supports the creation of secure Byzantine fault-tolerant P2P networks.

BFT networks can communicate and achieve consensus as long as 1/3 of their nodes agree. In contrast, Nakamoto consensus algorithms select a leader to mine a block. Their nodes also have to validate all block data, making the PoW mechanism inefficient, slow and expensive.

As an illustration, PoW blockchains have to replicate their ledgers among all their nodes as part of the consensus mechanism. Therefore, they are ill-suited to the Web 3.0 demand for decentralized high throughput and instant finality blockchain networks.

Fantom’s Lachesis is asynchronous, and its nodes are free to validate transactions as they occur on the network. It is also a leaderless protocol supporting a third of its nodes and instant output. In addition, Fantom uses the OPERA chain to ward off Sybil, Parasite chain attack, and transaction flooding.

Conclusion

Fantom’s protocols are flexible and create various blockchains giving the network high decentralization metrics. Consequently, developers can create real-world use applications that are fast and scalable yet extremely secure. It follows then that Fantom’s separate networks can meet enterprise decentralized ecosystem needs via the FTM staking process.

Mimo Protocol will leverage Fantom’s scalable and ultra-fast protocols to ensure that PAR achieves its Euro-based digital payments facilitation use case. PAR is a safe haven from volatility and an excellent alternative for crypto users who prefer the Euro rather than the USD.

Fantom will support Mimo Protocol’s ultimate decentralization and multi-chain environment. Its scalability and speed will also ensure that PAR and MIMO access a wider developer ecosystem. In addition, Fantom developers can leverage PAR’s Euro-Pegged Tokens to create decentralized applications on Fantom.

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