MEXC Global Research: High Performance Public Chain Fantom (FTM) Recommended by Andre Cronje (AC)

 Fantom

Fantom is a high-performance public chain based on DAG (Directed Acyclic Graph), which provides services for enterprises and applications, and aims to solve the scalability and processing time of existing blockchain technologies.

Fantom is powered by Lachesis, an advanced DAG-based aBFT consensus algorithm. In Fantom, each transaction information can become a unit, and the units can be connected to each other arbitrarily to verify their validity. Transactions do not need to be packaged together to complete the transaction, thereby increasing transaction concurrency and volume, and realizing instant transactions.

DAG (Directed Acyclic Graph)

If a directed graph cannot start from a vertex and return to that point through several edges, the graph is a directed acyclic graph (DAG in the figure). In other words, it is  non-cyclic, meaning it can only carry out the one-way flow of information. Compared to the typical chain design of blockchain, DAG can speed up the transaction speed and scalability.

Lachesis aBFT (LCA algorithm, Asynchronous Byzantine Consensus)

Lachesis is a breakthrough aBFT consensus mechanism developed by Fantom. aBFT consensus stands for “asynchronous Byzantine Fault Tolerant” consensus. When a network is said to be “Byzantine Fault Tolerant”, it means that nodes can still reach an agreement on an ordering of events even if part of the network acts maliciously.

Key properties of Lachesis algorithm:

· Asynchronous: Participants have the freedom to process commands at different times.

· Leaderless: All participants are equal and play no special roles.

· Byzantine Fault-Tolerant: Functional even when up to one-third of faulty nodes and malicious nodes are present.

· Instant: The output transaction of Lachesis can be confirmed in 1-2 seconds.

Unlike Proof-of-Work (PoW), Proof-of-Stake (POS) and pBFT, Lachesis nodes do not send blocks to each other. Validators don’t vote on a concrete state of the network; instead, they periodically exchange observed transactions and events with peers.

The event block includes the following information: transaction, smart contract, historical information, and the value of previous transactions.

In general, LCA specifically forms the Lachesis DAG based on the Lachesis protocol. A set of links between event blocks form a DAG, which is a distributed system that stores arbitrary data that cannot be changed. Due to the design of validator node, DAG supports high-speed real-time transactions.

Comparison of different consensus algorithms (Nakamoto consensus, pBFT consensus, Lachesis aBFT)

Opera Mainnet

The blockchain environment built by Fantom is called Opera, in which DApps can be built using smart contracts. The main features are: based on DAG technology that realizes cost-efficiency, integration with Ethereum Virtual Machines (EVMs) and the Solidity programming language.

Opera's technical architecture consists of three layers:

Opera core layer: responsible for large-scale transaction processing;

Opera ware layer: responsible for supporting smart contracts and other functions;

Opera application layer: provides support for third-party DApps

Investor Institutions

Blockwater Capital, Digital Currency Holdings, FBG Capital, Origin X Capital, X Squared, Huobi VC, Signum Capital, One Block Capital, Chainrock, Kosmos Capital, MB Technology, Bibox Fund, Block Tech Capital, Lemniscap Capital, AVA Quest, Lumen, Orichal Partners, FutureMoney Ventures, Block VC, BlockCrafters, SuperChain Capital, Arrington XRP Capital, JRR Crypto, Black Edge Capital, CryptoBazzar, Digital Strategies/Polymath, Zorax Capital, Transference Fund, LinkVC, Nirvana Capital, JD capital, DFund, Danhua Capital, Alameda Research (FTX parent company), BlockTower Capital, HyperChain Capital, etc.

Advantage

Instant Transaction finality: event blocks are connected and verified with each other, and there is no need to package blocks to improve concurrency and speed.

Low transaction fee: the transaction fee is close to 0. At the same time, 30% of the transaction fee is held by the CSRC (locked hedging), and the remaining 70% of the transaction fee is allocated to the verifier in proportion.

Strong scalability: It supports multiple nodes. The more nodes join, the faster the speed and the greater the scalability. It is compatible with Ethereum EVM virtual machine, etc.

Openness and transparency: open-source code

Tokenomics

Governance token: FTM (currently supports mainnet, ERC20 and BEP20)

Total: 3.175 billion

Token sale: 40%

Market development: 30%

Advisors and contributors：15%

FANTOM team and founders: 15%

Practical Value

1. Proof of stake, and hold tobecome the verification node

2. Transaction fee

3. Participation in voting governance

4. Collateral for Fantom’s DeFi suite

Existing risks

DAG technology is not yet mature or recognized in the market

The project is still in the improvement stage, and is pending completion pending

Cash out by investors and team

Public chain ecosystem competition is fierce

Partial Ecosystem Projects

Aggregator SpiritSwap

Token: Spirit

Market value: 15 million USDT

SpiritSwap (SPIRIT) is a one-stop comprehensive trading application on Fantom, which integrates the functions such as trading, lending, IDO, NFT trading, smart pool, and automatic insurance.

Collateral lending Scream

Token: SCREAM

Market value: 17 million USDT

SCREAM is a highly-scalable decentralized lending protocol built and powered by the Fantom Blockchain, and is similar to AAVE and Compound.

Aggregator ZooCoin

Token: ZOO

Market value: /

ZooCoin (ZOO) is a comprehensive trading application on Fantom, which is mainly composed of trading aggregator, K-line chart, NFT market and other functions.

Cross-chain yield aggregator Beefy Finance

Token: BIFI

Market value: 84 million USDT

Beefy Finance (BIFI) is a cross-chain revenue aggregator that can run on multiple chains. Currently, it supports Fantom and BSC chains. By providing users with automated investment strategies through smart contracts and algorithm programs, users can maximize their benefits from various liquidity pools (LP), automatic market making (AMM) projects and other mining and farming projects on Fantom.

Cross-chain stablecoin Curve

Token: CRV

Market value: 872 million USDT

Curve Fi is a cross-chain decentralized stablecoin trading application. Launched in Ethereum as early as January 2020, it enables users to trade between stablecoins with low slippage, low handling fee, and supports cross-chain, including ETH, Polygon, xDai, Fantom and other networks.

DEX platform Spookyswap

Token: BOO

Market value: 80 million USDT

SpookySwap is an automated market-making (AMM) decentralized exchange (DEX) for the Fantom Opera network. Take BOO token as governance token to provide diversified farms, built-in cross-chain bridges, limited price orders and user-centered services.

Cross-chain yield aggregator Popsicle Finance

Token: ICE

Market value: 29 million USDT

Popsicle Finance is a multichain yield optimization platform for Liquidity Providers, which supports automated compound interest to improve capital efficiency. They can automatically provide its users with the highest possible yield on the assets they wish to deploy to liquidity pools.

Cross-chain yield aggregator Graviton

Token: GTON

Market value: 18 million USDT

Graviton is a universal wrapped tokens’ liquidity incentivization solution that provides the technological foundation for seamless cross-chain communication and creates a reward-based economy around wrapped assets. Graviton's diverse infrastructure includes cross-chain bridge aggregators, cross-chain wallets, and LP reward farming products.