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What is Fantom? - Introduction To The Fantom Blockchain and its Lachesis Consensus Protocol

 

By Damian David Feb 26, 2023

 

 

Fantom is a high error-intolerant blockchain network built with unique smart contracts that improve the efficiency and speed of dApps, deFi projects and tools. The Fanton Blockchain network provides a highly scalable environment and customizability for dApps developers to leverage on. 

 

The Fantom blockchain network allows for a faster throughput, cheaper fees, complete independence and identity to each integrated dApp and blockchain via an asynchronous byzantine fault tolerance (aBFT) consensus mechanism, a very secured infrastructure, amongst others.

 

It is one of the many blockchain networks that aims to replace the Ethereum Blockchain or at least redefine its architecture. And for this reason it is completely compatible with the Ethereum Virtual Machine (EVM).

 

 

How Does Fantom Work?

 

One of the outstanding functionalities of the Fantom Blockchain is the "Lachesis", pioneered by the Fantom Blockchain itself. The "Lachesis" is a consensus protocol, specifically a proof-of-stake (PoS) consensus protocol. But the Lachesis is unique and provides more throughput in the Fantom Blockchain which gives it the edge it has over most popular Blockchains, Bitcoin and Ethereum inclusive.

 

This proof-of-stake (PoS) consensus protocol tagged Lachesis is unique because of its modular or asynchronous algorithm, and this makes it a Byzantine Fault Tolerant algorithm, meaning that if one or two or three nodes in a particular proof-of-stake (PoS) consensus malfunctions or acts maliciously, the finality of the block remains undeterred because other unaffected nodes can conveniently finalize the block.

 

In the Lachesis proof-of-stake (PoS) consensus, each node contains a local Acyclic Directed Graph (DAG). An Acyclic Directed Graph (DAG) is the architectural structure of the Lachesis nodes that contains every possible transaction that might be made in its particular block. A DAG is composed of "event blocks" and this mechanism is what makes each node function independently to achieve finality regardless of if other nodes malfunction.

 

DApps and deFi projects are able to deploy their product on the Fantom Blockchain due to the structural smart contract compatibility of the "Opera Chain". The Opera Chain serves as the integrated mainnet on the Fantom Blockchain that powers the various functionalities and utilities needed to allow the deployment and smooth running of dApps and deFi projects on the Fantom blockchain without the congestion of transactions.

 

How Does Proof Of Stake (PoS) Work In The Fantom Blockchain?

 

Each finalized block in the Fantom Blockchain has at least one Validator node that is required to validate the transaction. Anyone can be a Validator in the Fantom Blockchain because of its decentralized structure.

 

But many Blockchains have suffered Sybil Attacks which are attacks made by someone who was allowed to have multiple Validator nodes In a Blockchain network giving him the leverage to influence the network as he pleases. 

 

To prevent this, the Fantom Blockchain Network uses a proof of stake (PoS) protocol specifically designed to make it impossible for anyone with an intent of attack or maliciousness to it's Blockchain network in respect to validating nodes.

 

This is because before you can become a validator in the Fantom Blockchain you'll need to stake at least 500,000 $FTM Coins, making it a tough decision to make for anyone with the intent of maliciousness as there will be an irrevocable loss to his staked tokens which serves as punishment.

 

Is Validating And Staking The Same In Fantom?

 

Validators are people who verify and add or record an executed transaction on the Blockchain ledger. Staking doesn't require you to verify transactions on the Blockchain, but to become a Validator you'll have to stake a huge amount of the tokens required.

 

What Is FTM?

 

FTM is the native coin of the Fantom Blockchain that is used for utility purposes, governance and security. All transactions in the Fantom Blockchain will require a transactional fee paid in FTM coin.

 

FTM is compatible with the Ethereum Smart contract and the Binance Smart Chain as it has token variations in ERC20 and BEP2.

 

FTM coin has a total supply of 3,175,000,000, a circulating supply of 2,777,168,841 all valuing a total $1,373,965,557 in market cap according to CoinMarketCap as of February 2023.

 

Is Fantom Compatible with Ethereum and Cosmos SDK?

 

Yes, the Fantom Blockchain is constantly being modified to function seamlessly with the Ethereum Virtual Machine (EVM) and possibly replace it with cheaper and faster services, thanks to its aBFT consensus protocol. It can also be used as Layer-1 structure for the Cosmos SDK.

 

How Safe Is Fantom?

 

In terms of security, the Fantom Blockchain has made substantial efforts to make it's Blockchain safe and secure for everyone. The Asynchronous Byzantine fault Tolerant consensus mechanism, the Proof Of Stake (PoS) requirement for it's Validators, and the Opera Chain Mainnet are obvious and reliable efforts made to this cause.

 

Why Should You Choose Fantom?

 

A lot of Blockchain networks and dApps built on Ethereum are facing the downsides of it's exuberant charges, congested transaction line due to its proof of work (PoW) consensus protocol which didn't change until Sept. 15, 2022. 

 

So basically, Ethereum started out it's Journey using the proof of Stake (PoS) consensus protocol few months ago compared to Fantom which started out in 2019 as a unique type of Proof of stake (PoS) consensus protocol called "Lachesis". 

 

Fantom will obviously provide a better Blockchain infrastructure for your dApps in terms of making your developmental costs minimal, make it faster and lighter and also give it an independent identity regardless of the fact that it is deployed on Fantom.