Fantom (FTM) Ecosystem: An Introduction to Incredibly Scalable Blockchain Technology
introduction
Fantom is a Directed Acyclic Graph (DAG)-based smart contract platform designed for decentralized finance (DeFi) transactions. It addresses the limitations of existing blockchains such as Bitcoin and Ethereum and provides faster transaction times through an innovative approach.
Lachesis Algorithm
Phantom utilizes a permissionless protocol implemented through the Lachesis algorithm and the aBFT consensus algorithm. This asynchronous process accelerates transaction processing while ensuring decentralization and security. Lachesis’ peer-to-peer networking and DAG aBFT consensus mechanism minimizes communication overhead, resulting in faster finality compared to synchronous BFT.
Advantages over existing models
Lachesis, Fantom’s DAG-based asynchronous Byzantine fault-tolerant consensus algorithm, outperforms existing models and Nakamoto models. The asynchronous nature allows users to process instructions at their own pace, eliminating the need for a designated leader. Lachesis also maintains Byzantine fault tolerance, enabling consensus even in the presence of problematic nodes.
The fast finality of the Phantom Network leads to fast payments in about 1 second. High throughput and low costs (around $0.000001) make FTM tokens an ideal choice for currency exchange. Despite its low fees, Fantom ensures system security by extremely raising the cost of entry for malicious actors.
Governance through FTM
FTM plays an important role in the on-chain governance of the completely permissionless and leaderless Fantom ecosystem. Stakeholders use FTM to vote and propose changes, ensuring a decentralized decision-making process.
Staking with Fantom
Staking on Fantom is based on a proof-of-stake consensus mechanism. Users stake FTM tokens to verify transactions and receive additional FTM tokens in return. Staked tokens remain accessible to their owners and can be unlocked or released at any time. Stakers and validator nodes must adhere to certain staking parameters.
Staking parameters:
- Staking Period: Choose between 3 or 12 months with a variety of compensation structures.
- Staking Amount: Stake as many FTM tokens as you want through validator nodes, which require a minimum of 3,175,000 FTM.
- sharp: Malicious or incorrect actions during consensus can lead to slashing enforced by a consensus of 2/3 validators.
- compensation: Based on staking amount and performance during the consensus process, rewards are calculated per era.
conclusion
In the decentralized finance landscape, Fantom emerges as a technological marvel that redefines the speed, security, and potential of DeFi protocols. Powered by the Lachesis algorithm, the DAG-based platform introduces revolutionary transaction speeds, achieving finality in seconds. In addition to its technical capabilities, Fantom embodies a community-centric ethos that emphasizes decentralization, leaderlessness, and transparent governance.
FTM tokens not only facilitate fast and cost-effective transactions, but also play a pivotal role in network governance through a robust voting system. Fantom encourages users to contribute to this innovative DeFi ecosystem by incentivizing participation through attractive staking rewards. By delivering on its promise, Fantom is positioning itself as the foundation for the future of financial technology, delivering reliability, speed and sustainability.