Home » Defi » The Fantom (FTM) ecosystem: An introduction to the incredibly scalable blockchain technology

The Fantom (FTM) ecosystem: An introduction to the incredibly scalable blockchain technology

Decentralized Finance (DeFi) has emerged as a disruptive force in the financial industry, providing alternative solutions to traditional banking systems. One such DeFi protocol is Fantom, a highly scalable smart contract platform for decentralized applications (DApps).
The Fantom (FTM) ecosystem: An introduction to the incredibly scalable blockchain technology
Source: Freepik

Fantom: Redefining DeFi with DAG Technology


Fantom is a Directed Acyclic Graph (DAG)-based smart contract platform designed for decentralized finance (DeFi) transactions. It addresses the limitations of traditional blockchains like Bitcoin and Ethereum, offering faster transaction times through its innovative approach.

The Lachesis Algorithm

Fantom utilizes a permissionless protocol and the aBFT consensus algorithm, implemented through the Lachesis algorithm. This asynchronous process ensures decentralization and security while expediting transaction processing. The peer-to-peer networking and DAG aBFT consensus mechanism of Lachesis minimize communication overhead, resulting in faster finality compared to synchronous BFT.

Advantages Over Traditional Models

Fantom’s DAG-based asynchronous Byzantine fault tolerance consensus algorithm, Lachesis, outperforms classical and Nakamoto models. The asynchronous nature allows users to process instructions at their own pace, eliminating the need for a designated leader. Additionally, Lachesis maintains Byzantine fault tolerance, enabling consensus even in the presence of problematic nodes.

Payments: Fast and Cost-Effective

The Fantom network’s speedy finality translates to fast payments, taking around a second. With high throughput and low costs (roughly $0.000001), the FTM token becomes an ideal choice for exchanging money. Despite the low fees, Fantom ensures system security by making entry exceedingly costly for malicious actors.

Governance with FTM

FTM plays a crucial role in on-chain governance on the completely permissionless and leaderless Fantom ecosystem. Stakeholders use FTM to vote and propose changes, ensuring a decentralized decision-making process.

Staking on Fantom

Staking on Fantom is based on a proof-of-stake consensus mechanism. Users stake FTM tokens to validate transactions and, in return, receive additional FTM tokens. Staked tokens remain accessible to the owner, allowing for unlocking or unstaking at any time. Stakers and validator nodes must adhere to specific staking parameters.

Staking Parameters:

  1. Staking Period: Choose between 3 or 12 months for varying reward structures.
  2. Staking Amount: Stake any number of FTM tokens, with validator nodes requiring a minimum of 3,175,000 FTM.
  3. Slashing: Malicious or erroneous behavior during consensus may lead to slashing, enforced by a two-thirds validator consensus.
  4. Rewards: Based on staking amounts and performance during consensus processes, with rewards calculated per epoch.


In the decentralized finance landscape, Fantom emerges as a technological marvel, redefining speed, security, and the potential of DeFi protocols. Its DAG-based platform, powered by the Lachesis algorithm, introduces a revolutionary transactional speed, achieving finality in seconds. Beyond its technological prowess, Fantom embodies a community-driven ethos, emphasizing decentralization, leaderlessness, and transparent governance.

The FTM token not only facilitates rapid and cost-effective transactions but also holds a pivotal role in the network’s governance through a robust voting system. Encouraging participation through enticing staking rewards, Fantom beckons users to contribute to this innovative DeFi ecosystem. In delivering on its promises, Fantom establishes itself as a foundation for the future of financial technology, offering stability, speed, and sustainability.

December 29, 2023 at 5:00 pm

Updated December 29, 2023 at 5:00 pm


Remember, investing in cryptocurrencies involves risks, and it’s important to conduct thorough research and seek professional advice before making any financial decisions. (Please keep in mind that this post is solely for informative purposes and should not be construed as financial or investment advice.)


DeFI stands for decentralized finance, offering open and accessible financial systems built on blockchain technology.

Yield farming involves earning interest by lending or staking cryptocurrencies.

Layer 1 blockchains are the primary networks (e.g., Ethereum), while layer 2 blockchains scale and improve performance on top of them.

1 thought on “The Fantom (FTM) ecosystem: An introduction to the incredibly scalable blockchain technology”

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top