Table of Contents
Fantom is a blockchain platform that aims to provide a solution to the challenges of decentralization, security, and scalability that many other blockchains face. These three elements are commonly known as the “blockchain trilemma,” where a focus on two often requires a compromise on the third. Fantom is working to overcome this by utilizing an advanced proof-of-stake (PoS) consensus called Lachesis. This consensus aims to improve all three elements simultaneously.
Key Takeaways
Fantom is a high-performance, open-source, and modular blockchain that tries to solve the blockchain trilemma.
The platform uses a new consensus algorithm called “Lachesis” – designed to support fast and secure transactions.
Fantom aims to enable instant confirmation times with low transaction fees, making it suitable for various use cases: micropayments, gaming, and IoT.
The platform’s native token is FTM – used to participate in the network’s governance and to compensate validators for their work.
The Fantom team is working on creating a DeFi ecosystem on top of their blockchain.
The FTM token is the primary currency of the Fantom network. It serves for staking, casting votes for important decisions, facilitating payments, and covering fees.
How does Fantom work?
The Fantom network developed with four core principles at its foundation: modularity, scalability, open source, and security.
Its modular architecture allows for high customization, such as the ability to easily port Ethereum-based dApps to its mainnet powered by Opera, an open-source blockchain developed by Fantom.
Applications built on the network are independent of each other. This ensures that the performance and stability of one application is not affected by traffic on the wider network. The Fantom protocol is open source, anyone can run a node and customize the underlying code available on Github.
Directed acyclic graph
The FTM network uses a DAG – directed acyclic graph to enable its tokenized currency to operate in a decentralized and efficient manner. DAGs, like blockchains, are a type of DL that records network transactions. In a DAG, the network simultaneously processes transactions, and shares the validated ones among neighboring nodes. This allows for parallel processing, making the system more efficient than traditional blockchains where one node leads new block production.
Additionally, Fantom’s network secures itself by the Lachesis consensus mechanism, which the team claims is faster, more secure, and more scalable than Classical and Nakamoto consensus systems.
Lachesis consensus
FTM utilizes Lachesis, an asynchronous Proof of Stake consensus mechanism, to reach consensus within the network. This mechanism allows nodes to agree on the validity of transactions and interactions before they finalize on the distributed ledger of the DAG. The Lachesis consensus mechanism aims to address the challenges of decentralization, scalability and security in blockchain technology, by applying it to the DAG to record transactions on a DL that is free from the traditional limitations of blockchain technology.
In creating Lachesis, the team behind FTM aimed to design a consensus mechanism that prioritized several key aspects of transaction processing.
Leaderless, meaning that it doesn’t rely on a central authority to validate transactions, but rather on a network of nodes that constantly communicate with one another.
Asynchronous, so that nodes can independently reach consensus and process commands at different times.
Byzantine Fault-Tolerant, meaning that it can withstand up to one-third of nodes that are faulty, and still validate transactions quickly and with finality. This was possible by only needing two-thirds of the nodes to validate a transaction.
Lastly, the system’s design makes it reach transaction confirmation in 2 seconds.
Opera Network
Fantom’s Opera network is an ecosystem with smart contract and dApp support. It’s designed to be EVM-compatible, so that Ethereum-based projects can easily transfer to the ecosystem. This is exactly how DeFi projects like Aave, yearn.finance, and Curve have been able to deploy and find success on the Fantom network.
The success of DeFi on the FTM network attributes to its unique offerings, tailored to the network’s specific needs. One such example is the fUSD stablecoin, which is pegged 1:1 to USD and aims to drive the growth of lending/borrowing protocols and decentralized exchanges within the Fantom ecosystem. As of January 2022, the DeFi total value locked (TVL) on Fantom had reached nearly 13 billion.
Fantom Development
Fantom was established in 2018 by Ahn Byung Ik, a PhD holder in computer science from Yonsei University. Aside from being deeply involved in the world of blockchain, Dr. Ahn also served as the founder of Siksin, a popular restaurant review and recommendation platform launched way back in 2010. For some time, Dr. Ahn held the role of CEO at Fantom, but eventually chose to relinquish this position in 2019 and to allow Michael Kong, a software engineer with significant experience creating Ethereum-based smart contracts, to step into the spotlight while providing guidance behind the scenes.
Andre Cronje, founder of yearn.finance, also had a major influence on the early development of Fantom. His knowledge and insight into the world of decentralized finance was invaluable to the team. Cronje’s support had an undeniable impact in helping to shape the direction that the ecosystem would take. Unfortunately, he chose to step away from the project during March 2022.
A major milestone for Fantom was the launch of its mainnet in December 2019. The network saw a large spike in usage over the following months. Its daily transaction count overtook that of Ethereum by January 2022. This largely attributed to the increased popularity of new DeFi products that offered high returns and Fantom’s partnerships with reputable crypto players such as Chainlink, The Graph, and Ren. This surge in interest transformed FTM into a force to be reckoned with within the field of blockchain technology.
FAQ
Frequently asked questions about FTM.
Who are the creators of FTM?
The Fantom Foundation, founded by Dr. Ahn Byung Ik, is a blockchain platform that prioritizes scalability, decentralization, and security. Michael Kong is currently the CEO of the platform. The team behind Fantom has extensive experience in full-stack blockchain development. It comprises specialists in engineering, science, research, design, and entrepreneurship. The team members are located all over the world, aligning with the platform’s goal of being a distributed network.
How does the FTM network secure itself?
Fantom utilizes a custom version of the proof-of-stake algorithm called Lachesis, to secure its network and provide services. Lachesis is an example of an asynchronous Byzantine Fault Tolerance (aBFT) consensus mechanism. It eliminates the need for a leader among network participants, reducing the risk of low-cost attacks. Additionally, the use of staking further incentivizes users to secure the network by holding FTM tokens.
What makes FTM unique?
Fantom (FTM) utilizes a custom-designed consensus mechanism, known as Lachesis, to support decentralized finance (DeFi) and other related services through the use of smart contracts. Lachesis aims to provide increased scalability and faster transaction confirmation times of under 2 seconds, while also enhancing security compared to traditional proof-of-stake (PoS) algorithms.
Fantom’s Opera network is a smart contract-enabled ecosystem that seeks to attract developers who are looking to build decentralized solutions. The project’s goal is to create compatibility between all transaction networks worldwide. The native token of the Fantom network, FTM, is for transactions, staking and collecting network fees, as well as providing rewards for users who participate in staking.
Where do I buy Fantom crypto?
If you’re wanting to buy FTM the easiest way is through exchanges that trade it: Binance, Kraken and KuCoin. Current market cap and current circulating supply of the coin makes up the Fantom Price. The highest price paid (all time high) for FTM was $3.48 in October 2021, handling billions of trading volume.