How Does Fantom Opera ($FTM) Work?

1 month ago
5 Min Read
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Fantom Opera.png

Fantom Opera ($FTM) is an open-source & decentralized blockchain network for building Decentralized Applications (DApps) via smart contracts. It leverages its speed and fast finality and is perfect for applications with no risks of congestion or long confirmation times. It works upon Asynchronous Byzantine Fault Tolerant (aBFT), Proof-of-Stake (PoS) consensus which provides lightning-fast speed and fast finality. To put things into perspective, the payments made on the Fantom network cost near zero ($0.0000001) and take around 1 second to complete. Its mainnet is also fully compatible with the Ethereum Virtual Machine (EVM) and anyone can easily port their existing Ethereum DApps to Fantom. For more info, please checkout the basic Fantom Opera guide by @crypto-guides.

In this blog, we are going to see the different components of Fantam Opera Blockchain and how they work together. Fantom consists of two main layers and both of them have different functions and features to support the network.

What Is Lachesis?

The Fantom Network uses a leaderless consensus algorithm called Lachesis. It follows Asynchronous BFT (aBFT) consensus which ensures high transactional speed and security to the network. It also makes Fantom cheaper than generation two blockchains and eco-friendly too. It allows nodes to process transactions at different times and can work with up to one-third of malicious or faulty nodes.

How Does Lachesis Work?

Each Lachesis node stores a local data structure called acyclic directed graph (DAG) which contains finalized event blocks. DAG is simply used to finalize the order of these events. Each event block contains a set of multiple transactions and is divided into confirmed and unconfirmed event blocks. Each DAG is also divided into separate sub-DAGs which are called Epochs.

As per Fantom's whitepaper, each epoch is sealed when one of these conditions is satisfied:

  • The epoch reaches a defined number of blocks
  • The epoch lasts for a specified time
  • At least one cheater is confirmed in this block

Each event in an epoch contains a reference to the previous epoch which sets the order of these events. New events of sealed epochs are not considered for the consensus.

With one consensus message, multiple event blocks (in batches) are confirmed at the same time on each node independently. This will result in the creation of the chain. Each batch of events is called a block. A syncing process among nodes happens periodically to align the events on each node to reflect the latest state of the chain.

The newly generated event blocks are always unconfirmed and they are used to vote for the previously generated even blocks on 2nd or 3rd position at the same time. Mutilple elections happening at the same time lead to fast finality with minimum no. of consensus messages generated.

Each validator node needs to hold a minimum of 1 Million FTM to be eligible for block production. Others can also stake their FTM to earn epoch rewards and delegate it to other validator nodes to earn a share from the fees. It creates a more decentralized and secure network.

What Is Opera Mainnet?

Opera Mainnet is an open-source environment to develop and host Decentralized Applications (DApps) powered by Lachesis. It has smart contract functionality like Ethereum but with near-zero fees and fast transaction times. Blockchain is fully compatible with Ethereum Virtual Machine (EVM) and hence, it is easier for existing Ethereum DApps to port over to Fantom.

Opera is creating a decentralized blockchain ecosystem along with the whole blockchain technology stack that could help developers and users to participate in the new economy. It solves the famous blockchain trilemma by providing a balance of scalability, security, and decentralization.

What Is Fantom DeFi?

Fantom provides an all-in-one DeFi (Decentralized Finance) solution for its EVM-compatible blockchain. These are the products included in the DeFi suite:

  1. Liquid Staking: Users can lock or delegate their FTM tokens to get sFTM tokens at a 1:1 ratio. These tokens are liquid and users can use them across various other products within the Fantom Ecosystem. Minting and converting sFTM back to FTM is feeless.
  2. fMint: Users can lock FTM as collateral to mint synthetic assets on Fantom like crypto, pegged currencies, and commodities. For example, you can mint fUSD (stablecoin on Fantom) by locking up FTM, or synthetic assets by locking fUSD.
  3. fLend: Users can use their liquid sFTM tokens in Fantom’s borrowing and lending protocols without risking their FTM token stake.
  4. fTrade: fTrade is the automated market maker (AMM) & decentralized exchange (DEX) built on Fantom. Users can exchange between different Fantom tokens within the wallet.

All these offerings native to the Fantom Network make it a fully functional DeFi ecosystem which is fast, scalable and decentralized as compared to Ethereum and other blockchains.

I hope now you guys understand how Fantom Opera works and what are its unique features. Please share your thoughts and suggestions in the comment section below.

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