What is Fantom (FTM)?

The emergence of decentralised applications (dApps) has seen an influx of platforms to run them on, but many of these are limited by high transaction fees and scalability issues. The Fantom team aims to solve these challenges with a platform that is faster and cheaper to use than alternatives such as Ethereum. It does this primarily by approving transactions using a leaderless proof-of-stake (PoS) consensus mechanism called Lachesis and employing a twist on its foundational technology.

How does Fantom work?

Directed acyclic graph (DAG)

Imagine a cryptocurrency ecosystem as a house. The structure itself is your layer 1 crypto project, like Fantom, while dApps are the furniture that you actually use. Most houses today are built using bricks and mortar, but you can achieve similar structural integrity for less money using other materials. Similarly, most cryptocurrencies are built on blockchains, but some are built on other distributed ledger technologies – in Fantom’s case, a directed acyclic graph.

The key difference between a DAG and a blockchain is that a blockchain looks like a chain, while the DAG structure looks like a graph. In a DAG, a single transaction is linked to multiple other transactions. This means that, in theory, transactions can be processed more efficiently and quickly on a DAG structure, as each transaction confirms and references multiple previous transactions.

Lachesis consensus mechanism

Fantom relies on its unique proof of stake consensus mechanism, Lachesis, to achieve consensus on the network. Lachesis is designed to address the so-called trilemma of security, decentralisation and scalability. Lachesis doesn’t rely on miners; instead, participants directly validate transactions. Each node in the network constructs its own local DAG, and through a gossip protocol, they share information to reach a global consensus. 

What is the cryptocurrency of Fantom?

The native cryptocurrency of the Fantom network is called FTM. The cryptocurrency powers its governance, security, and economic systems. FTM incentivises active participation, and secures the network. 

FTM is available to buy and sell on the Luno app and website. 

Who created Fantom?   

Fantom was founded in 2018 by Ahn Byung Ik, a South Korean computer scientist. Prior to establishing Fantom, Ahn held the position of president at the Korea Food Tech Association and developed SikSin, a restaurant feedback app similar to Yelp. 

In 2019, Ahn left Fantom and left the leadership to the Fantom Foundation. The foundation is composed of engineers, scientists, researchers, designers and entrepreneurs who all contributed to the development of the Fantom protocol. 

Useful tools

Fantom website
Fantom blog
Fantom on X 

*Investing in cryptocurrency may result in the loss of capital as the value can fluctuate.