Fantom

2 min read

Pronunciation

[fan-tuhm]

Analogy

Think of Fantom as a highway system where, instead of cars forming a single lane that moves forward one vehicle at a time (traditional ), multiple lanes process traffic simultaneously, and cars can merge from any lane based on their destination (DAG structure). Traffic controllers (validators) don't need to monitor every single car, but instead verify the overall traffic patterns, allowing for much higher throughput. The highway is designed to be compatible with existing vehicles (EVM compatibility) while providing faster travel times and lower tolls.

Definition

A -based designed for high throughput, low costs, and fast through its Lachesis . Fantom aims to overcome scaling limitations while maintaining security and , particularly targeting decentralized finance (DeFi) applications with its -compatible Opera .

Key Points Intro

Fantom's architecture is built on four key technological innovations that form its performance foundation.

Key Points

Lachesis Protocol: Asynchronous Byzantine Fault Tolerant (aBFT) consensus mechanism allowing independent validation without synchronous communication.

EVM Compatibility: Full support for Ethereum Virtual Machine, enabling easy migration of Ethereum dApps and developer tools.

DAG Structure: Organizes transactions in a directed acyclic graph rather than sequential blocks, allowing parallel processing.

Proof of Stake: Secures the network through staking of FTM tokens with minimal energy consumption compared to Proof of Work.

Example

A deployed on Fantom allows users to swap tokens, provide liquidity, and farm yields with transactions that confirm in 1-2 seconds and cost less than $0.01 each. During a popular NFT mint that would cause congestion on traditional blockchains, Fantom maintains consistent performance due to its ability to process multiple paths simultaneously. Developers can port their existing smart contracts to Fantom with minimal changes, immediately benefiting from faster speeds and lower while using the same development tools they're already familiar with.

Technical Deep Dive

Fantom's Lachesis utilizes a leaderless system with asynchronous . nodes create Events (similar to blocks) containing transactions, which are added to the DAG after validation. The then uses the OPERA algorithm to determine , creating a Main Chain of confirmed Events from the DAG structure—conceptually similar to the difference between a git commit history (DAG) and the main branch (chain). Fantom achieves sub-2-second through its asynchronous approach, where nodes can process Events without waiting for from other nodes, reducing coordination overhead. The platform implements a system of epochs and weights for selection, with minimum requirements and delegation options for FTM holders. Fantom's architecture separates from application layers, with the Opera providing compatibility through its implementation.

Security Warning

While Fantom's high throughput enables rapid processing, users should be cautious when interacting with newer protocols on the platform, as the low make it economically viable to deploy unaudited or malicious contracts. Always verify audits and team credibility before committing significant assets.

Caveat

Despite theoretical advantages, Fantom's performance under extreme network load can still experience degradation. The DAG structure, while efficient, introduces complexity in ensuring ordering for applications requiring it. Additionally, while the is decentralized, the relatively high requirements may limit participation compared to some other networks, potentially affecting in practice.

Related Terms

Directed Acyclic Graph (DAG)

Asynchronous Byzantine Fault Tolerance

DeFi

Blockchain & Cryptocurrency Glossary

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