Distributed Ledger Technology Stack - Fantom

Fantom is a cryptocurrency developed using Directed Acyclic Graph (DAG) technology. Fantom is a blockchain infrastructure development project created with the participation of a food tech company and the Korea Food-Tech Association. The representative is Mr. Ahn, a Korean computer engineer. In July 2018, an ICO for Fantom was conducted, securing investment funds of 40 million dollars (about 40 billion won). From November 2018, Phantom will provide Fantom tokens as event rewards in the restaurant information app, or start a pilot service where POS Bank POS devices are installed and payment with Fantom tokens. Initially, it will focus on the food-tech sector and then expand to various industries such as medical care and distribution. Fantom aims to launch Fantom's mainnet, Opera Chain, before the third quarter of 2019. Opera Chain consists of three layers: core, wear, and application. OperaChain will use the Lachesis protocol to dramatically increase processing speed. Using the Lachesis protocol, it will be developed to process 300,000 transactions per second while complying with Byzantine Fault Tolerance (BFT). Fantom announced that it will invest in startups by establishing venture capital as well as developing blockchain technology. Fantom is the world's first DAG-based smart contract platform that solves the scalability and confirmation time issues of existing blockchain technology. Instead of creating blocks, Phantom solves the scalability and slow transaction speed of blockchain through DAG, a non-blockchain technology that enables asynchronous information transfer and confirmation between nodes, and is directly applied to food tech transactions closely related to life. It is leading the practical third-generation crypto coin innovation.

Lachesis Protocol

Within the DAG, the Lachesis protocol stores numerous series of events and associated transactions. Like the blockchain, the OPERA Chain is stored by each node participating in the network. To prove a transaction on each node, a node known as a witness node does the job of verifying the chain of all nodes. In addition, in the OPERA Chain, Phantom uses the Lachesis Consensus Algorithm (LCA). It builds the Lachesis DAG based on the Lachesis Protocol, which significantly improves performance and security using DAG-based distributed ledger technology. LCA is a BFT (Byzantine Fault Tolerance) technology that guarantees a level of consensus similar to that of the existing blockchain. However, LCA can process up to 300,000 transactions per second as well as preventing attacks caused by specific node failures.

Directed Acyclic Graph - DAG (Directed Acyclic Graph) is called a directed acyclic graph and refers to a method in which there is a moving direction but no formally cyclic structure between nodes. In the existing blockchain structure, after the node is verified, it is mounted like a chain at the end. However, since DAG is an acyclic structure, it has the advantage of concurrently processing transactions. Therefore, there is no need to wait for block generation and reliability increases as usage increases.

Lachesis Consensus Algorithm - If there are blocks in the chain, there are blocks of events in the Opera chain. Event blocks contain transactions, smart contracts, stories (history information), and previous event values. Links between event blocks are made through DAGs. Events are linked to previous event blocks with a central authority to manipulate the structure. Previous event blocks get more validation as future event blocks are added. LCA is fully asynchronous and if two identical transactions are requested, i.e. the double-spending problem, only the earliest one is valid. The order between transactions is sorted with the help of the main chain list. The new event block is linked to the upper event block, which is the most recent previous event block, and nodes can create blocks at high speed through the Lachesis protocol. Lachesis protocol can be expressed as a graph in which all event blocks are connected. Some chains can be connected through set blocks, which are called main chains. In other words, the more event blocks there are, the faster the verification speed and the higher the reliability.

Next DeFi Reader - Fantom

With the growth of the Fantom blockchain ecosystem, the Fantom token price is rising to the moon. Fantom is emerging along with Solana (SOL) and Avalanche (AVAX) as the popularity of Layer 1 blockchains with stronger interoperability in several blockchains accept Ethereum is growing. Fantom has driven the growth of a network of projects, including decentralized transactions, loans, and digital collectibles. The Fantom Foundation will reward 370 million FTM as an incentive for projects built on the Fantom network.

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