Key Takeaways
- Founded in 2018, Fantom is a Layer 1 project with a single consensus layer supporting multiple execution chains.
- FTM, Fantom's native token, is used for payments, governance, and block rewards for validators and delegators who stake FTM.
- Fantom utilizes the Lachesis Protocol, a novel consensus mechanism, to provide security to multiple layers including the EVM-compatible smart contract chain, Opera.
- Fantom is designed to address decentralization, security, and scalability through its high-performance smart contract platform.
What is Fantom?
Founded in 2018, Fantom is a Layer 1 project with a single consensus layer supporting multiple execution chains. Its native token, FTM, is used for payments, governance, and
block rewards for validators and delegators who stake FTM. The Lachesis Protocol, Fantom's novel consensus mechanism, provides security to multiple layers, including the EVM-compatible smart contract chain, Opera.
Fantom is a high-performance smart contract platform designed to tackle the "blockchain trilemma" of decentralization, security, and scalability. Utilizing a unique consensus mechanism called Lachesis, Fantom ensures extremely fast transaction speeds without sacrificing security or decentralization. The platform can handle a high volume of transactions, making it suitable for various applications.
Fantom's mission is to build a scalable, accessible platform for future blockchain users. By overcoming the limitations of traditional PoW and PoS architectures, Fantom offers a new model for transaction consensus with near-instant finality, asynchronous processing, leaderless operation, and Byzantine fault tolerance. This positions Fantom as a versatile platform for DeFi applications and more.
How does Fantom Work?
Fantom is a decentralized, open-source smart contract platform designed to provide a fast, secure, and scalable infrastructure for dApps. The platform leverages Lachesis, an advanced aBFT consensus protocol, to enhance performance while maintaining robust security and decentralization.
Key Properties of Lachesis
- Asynchronous: Validators process transactions independently without needing to work on the current block, enabling parallel processing.
- Leaderless: No single participant has a special role in block production, ensuring a truly decentralized network.
- Byzantine Fault Tolerant: The system remains functional even with up to one-third of nodes being faulty or malicious.
- Final: Transactions achieve confirmation within 1-2 seconds, providing near-instant finality.
How Lachesis Works
Fantom's Lachesis consensus mechanism combines aBFT with DAGs. The aBFT protocol allows nodes to process transactions independently without needing sequential block exchange, significantly speeding up transaction times. DAGs represent blocks of transactions in a non-linear structure, enhancing data propagation and validation.
Each validator maintains its local DAG, where it adds blocks created from incoming transactions. Validators asynchronously exchange these blocks, spreading transaction information across the network. Once a majority of validators reach consensus on a block, it is added to the Fantom mainnet, a blockchain containing all final consensus transactions.
Epochs in Lachesis
Lachesis structures its DAG into epochs to optimize storage and retrieval. An epoch is a sub-DAG that includes many finalized blocks. Epochs are sealed when they reach a predefined number of blocks, a specified time duration, or detect at least one malicious actor. Once sealed, the inner indexes of the epoch are pruned, and new events are ignored. Each epoch forms a separate DAG, with no parent-child relationship across epochs. For integrity, each event includes the hash of the previous epoch.
By combining the benefits of aBFT and DAGs, Lachesis achieves high throughput and rapid transaction finality without sacrificing decentralization or security. This innovative approach positions Fantom as a leading next-generation blockchain platform for scalable and efficient dApp development.
Fantom and Staking
Staking on Fantom is a critical mechanism for securing the network and maintaining its decentralization. It involves locking up your FTM tokens, similarly to staking ETH on Ethereum. Validator nodes on Fantom validate transactions and are incentivized economically by the staked tokens to adhere to the network rules. This process prevents Sybil attacks, where a malicious actor could gain undue influence by operating a large number of validators.
Fantom employs a PoS consensus algorithm, where validator nodes are required to stake a minimum of 50,000 FTM. This substantial stake ensures that validators are financially motivated to act in the network's best interest. Validators that act maliciously can be penalized, losing their staked tokens, which increases the cost of attacks.
Stakers with less than that amount can delegate their tokens to validators. Choosing a reputable validator is crucial as staking with malicious validators can result in the loss of staked tokens. Validators that go offline temporarily stop earning rewards but do not affect the security of staked funds. If a validator acts maliciously, all funds staked to that node can be slashed.
Running a Validator Node on Fantom
To run a validator node, one must stake a minimum of 50,000 FTM, with a maximum validator size of 15 times the self-stake amount. Validators earn rewards from both their self-stake and a portion of the delegators' rewards. Currently, the APR for staking on Fantom is approximately 6%, varying based on the total staked percentage.
For detailed and up-to-date information on staking rewards and validator operations, visit Fantom's official staking page.
What Makes Fantom Unique?
Fantom stands out due to its Lachesis consensus mechanism and DAG structure, allowing parallel transaction processing for high throughput and scalability. It supports high transaction volumes with low fees.
EVM compatibility ensures developer-friendliness, enabling easy porting of Ethereum smart contracts. Security is maintained through a PoS consensus, providing decentralization and energy efficiency security.
Fantom’s modular architecture offers flexibility, allowing integration of various applications and services. This unique combination of speed, scalability, security, and developer-friendliness sets Fantom apart in the blockchain landscape.
The Fantom Blockchain Ecosystem
The Fantom blockchain ecosystem boasts 23 DeFi dApps, including SpookySwap, its leading DEX. It also features lending and borrowing protocols, decentralized options trading, and much more, providing a versatile platform for a wide range of DeFi activities.
FTM Token
FTM is the native cryptocurrency of the Fantom blockchain platform, serving as the backbone of the entire ecosystem. FTM holders can stake their tokens to secure the network and earn rewards. Token holders also participate in the platform's development by voting on proposals, making FTM integral to governance.
Most importantly, FTM is used to pay for transaction fees on the Fantom network and is essential for accessing various dApps and services built on Fantom.
FTM Wallets
FTM, being an EVM-compatible chain, is supported by popular wallets like MetaMask and Trust Wallet. However, Fantom's native fWallet is the recommended choice for users who want to stake FTM.
