Fantom H1 2023 OverviewThe blockchain landscape continues to evolve at a rapid pace, with innovative projects
seeking to address the scalability and performance limitations of early-generation
blockchains. Among these projects, Fantom has emerged as a promising contender in the
very competitive landscape of Layer 1 blockchains, boasting a high-performance blockchain
architecture that aims to revolutionize decentralized applications and financial systems.
In this quarterly analysis, we will dive into the architecture of Fantom, exploring its key
components, strengths, and potential areas of improvement. The purpose of this report is to
highlight recent developments being made on Fantom’s roadmap, observe the broader
Fantom ecosystem and how it's held up with the tumultuous post-FTX crypto landscape and
observe potential futures for Fantom as a highly performant Layer 1 blockchain.
Fantom places scalability and throughput at the forefront of its design philosophy. At the
heart of its architecture is its Directed Acyclic Graph (DAG) structure, an alternative to the
linear designs present in other blockchains’ architectures. This DAG structure helps enable
the parallel processing of transactions, unlocking the potential for significantly higher
transactions per second, one of the key benchmarks for highly scalable blockchains. By
leveraging this innovative design, Fantom aims to overcome the scalability challenges faced
by traditional blockchains, allowing for real-world applications that require rapid transaction
finality and high throughput.
Critical to the Fantom architecture is its consensus mechanism, the Lachesis Protocol. This
mechanism, built upon an asynchronous Byzantine Fault Tolerance (aBFT) algorithm,
ensures secure and efficient consensus across the network. With aBFT, Fantom achieves fast
transaction finality, with confirmed transactions occurring within seconds. This rapid finality
enhances user experience and opens doors to high-frequency trading, real-time payment
systems, and other time-sensitive applications.
Through the use of Fantom’s aBFT technology, it’s also possible for the blockchain to
achieve true finality, a term that describes the fact Fantom doesn’t have to worry about
waiting for transaction confirmations; when a transaction is sent, it is confirmed. The chart
below shows the benefits of Lachesis aBFT compared to other consensus mechanisms, with
Fantom achieving scalability, lower latency and a relatively high ratio of decentralization.
For the full report click here .
