Problems with established public chains
As we all know, there is a problem with old public chains such as Bitcoin and Ethereum: the more nodes, the higher the degree of decentralization, but the worse the speed and scalability, while DAG is just the opposite. Simply put, the more nodes join, The faster the speed, the scalability will become infinite.
In fact, star public chains such as EOS and TRX have also tried to solve the impossible triangle problem of blockchain, but the actual effect is not satisfactory. For example, EOS, which is known as one million TPS, has only a few thousand actual tests, and its security is extremely poor. It has become the most famous and worst-performing public chain in the market.
Many new public chains are also trying to solve this problem, such as the avalanche protocol that focuses on financial public chains, the open network NEAR, etc. Fantom uses a technology called DAG to solve this problem.
The innovative solutions of the Fantom team are supported by many investment institutions, such as Block VC, BlockCrafters, JRR Crypto, CryptoBazzar, Connect Capital, Zorax Capital, Transference Fund, Node Capital, Nirvana Capital, DFund Fund, Danhua Capital, Backward Blockchain Funds, etc.
New smart contract platform based on DAG
Fantom is a DAG-based smart contract platform that solves the scalability and confirmation time issues of existing blockchain technology. Fantom is a highly scalable DAG project that supports smart contracts, fast transactions and almost zero handling fees.
What is DAG?
Directed acyclic graph. It is a commonly used data structure in the computer field. From a structural point of view, it is a distributed system structure. In graph theory, if a directed graph cannot start from a vertex and return to that point through several edges, then the graph is a directed acyclic graph. Because a point in a directed graph passes through two routes to another point, it does not necessarily form a ring, so a directed acyclic graph may not necessarily be converted into a tree, but any directed tree is a directed acyclic graph.
DAG does not have the concept of blocks. Instead of packaging all data into blocks, each user can submit data units (including transactions, consumption, etc.), and multiple users can submit data at the same time, which is the writing of data units. Import operations are asynchronous and linked by reference relationships between data units (direct confirmation between nodes).
The Fantom project has made many technological innovations, trying to solve the "impossible triangle" of blockchain technology.
First, the Fantom platform uses a new protocol called the "lachesis protocol" to maintain consensus. The agreement will be integrated into the Fantom OPERA chain. Its purpose is to allow the establishment of a batch of programs on the Fantom OPERA chain, so that all users can enjoy instant transactions with almost zero cost.
As a new type of distributed infrastructure, OPERA chain aims to solve the scalability problem of existing blockchains through large-scale and fast processing of blocks. At the same time, OPERA chain tries to process transaction information and "StoryData" in a distributed environment in real time.
The OPERA chain consists of three layers: the core layer (Core Layer) is responsible for large-scale transactions; the software layer (OPERA Ware Layer) is responsible for supporting smart contracts and other functions; the application layer (OPERA Application Layer) provides support for third-party applications.
Secondly, LCA (Lachesis Consensus Algorithm) consensus algorithm, which aims to use DAG-based distributed ledger technology to improve performance and security. It can not only prevent attacks caused by specific node failures, but also achieve extremely high transaction throughput.
Specifically, LCA will form "Lachesis DAG" on the basis of the Lachesis Agreement. A series of links between event blocks form a DAG. As a distributed system, DAG can store arbitrary data that cannot be changed. The event block includes the following information: transactions, smart contracts, historical information, and the value of previous transactions.
Furthermore, in terms of virtual machines, the Fantom virtual machine aims to significantly reduce capacity and increase processing speed. The register-based virtual machine can reduce OPCODE's execution cost by more than 50% and nearly double the performance capacity.
Compared with other projects, the innovation of the Fantom project is that Fantom hopes to use the highly secure Elliptic Curve Cryptography (ECC) technology to enhance the security of signatures and data transmission between nodes.
The advantage of elliptic curve encryption is that it can use a shorter key length to ensure higher security and allow high-speed calculations when signing. Elliptic Curve Cryptography (ECC) uses the most effective algorithm to solve the discrete logarithm problem, thus easily designing a secure cryptographic system.
This encryption system is more efficient because its key length is shorter than other encryption systems with the same security. In addition, Fantom also intends to increase support for software and hardware wallets and enhance the security of these wallets by using ECC technology.
FTM token
An important function of FTM is staking. Staking FTM to become a verification node to obtain income, which is very similar to the common PoS consensus mechanism.
According to the blockchain big data, the total circulation of FTM tokens is 3.17 billion, and the circulation of the whole network is about 2.5 billion. The current price is about US$0.1149, and the total market value exceeds US$350 million.
Fantom's exploration in the field of DeFi
On May 7, 2020, Fantom announced the launch of Fantom finance, which is the first DeFi platform launched with the aBFT consensus mechanism. Most common DeFi projects are based on the Ethereum network, while the project is based on the Fantom platform.
Fantom's aBFT consensus mechanism has the following advantages:
Close to instant confirmation
High throughput
High security
For DeFi projects, these characteristics are basic conditions. Fantom finance will provide on-chain transactions, lending, pledge and other services, and ensure safety and speed. More importantly, users will not have any delay or jam experience on the platform.
Fantom Finance has three basic products: fMint, fSwap, and fLend.
fMint, minting stable coins. That is, users can lock FTM tokens through fMint to mint synthetic assets fTokens.
fSwap, exchange. fSwap supports the transaction of up to 176 kinds of synthetic assets, which will be protected on the chain through the Proof of Rights consensus of the Opera network. fSwap has the advantages of good depth, fast confirmation, and zero slippage.
fLend, lending. Users can borrow and borrow through fLend. Different assets form a capital pool. The borrowing interest rate is automatically adjusted according to market conditions, similar to Compound.
Fantom's team is also one of the highlights. Its founder, Ahn, has a rich background in computer science and IT business, and at the same time he has entrepreneurial resume experience, which has a greater positive role in the subsequent technical development, operation and maintenance management and institutional development of the project.
On the other hand, the Fantom project has a technical special development team of at least 14 people, and many of them are highly educated talents such as doctors and postdocs. At the same time, many members of the technical team have a special research background in blockchain technology. In short, Fantom's special technology research and development and project development team, relatively speaking, this move has given the project strong innovation and competitiveness.
In short, Fantom succeeded in gaining market recognition by innovating in mechanism. Recently, Fantom announced that it had reached a cooperation with Coinbase Custody. Then, Fantom successively reached cooperation with the oracle leader Band and the decentralized exchange Sushiswap. These non-stop business cooperation continued to empower FTM tokens, which was also the cause of its skyrocketing.