What Is FTM?

How does FTM work?

1. 
   
   Directed Acyclic Graph (DAG): FTM utilizes a DAG structure, specifically the Lachesis protocol, for its consensus mechanism. This structure allows simultaneous processing of transactions without relying on block leaders, ensuring scalability.
   
   


2. 
   
   Lachesis Consensus: Lachesis, an asynchronous Byzantine Fault Tolerant (aBFT) Proof-of-Stake (PoS) consensus mechanism, ensures network security. It permits participants to process data independently, filtering out potential malicious actors.
   
   


3. 
   
   Opera Layer: FTM employs Opera as its mainnet deployment platform at the application development layer. Opera supports Ethereum Virtual Machine (EVM) integration, facilitating seamless interaction with Ethereum-based applications.
   
   


4. 
   
   Swift and Cost-Effective Transactions: FTM achieves rapid and secure transactions, settling within 1-2 seconds, at a minimal cost per transaction. The DAG structure eliminates the need for block leaders, enhancing operational efficiency.
   
   


5. 
   
   On-Chain Governance: FTM holders actively participate in on-chain governance using their tokens. Each FTM token represents a vote, enabling users to express opinions on proposed network changes.
   
   

Value Analysis of FTM

1. 
   
   Scalability: FTM's DAG structure ensures high scalability, capable of processing thousands of transactions per second. This scalability positions Fantom as a promising platform for DeFi applications.
   
   


2. 
   
   Security: The Lachesis consensus mechanism, offering asynchronous Byzantine Fault Tolerance, guarantees network security, even without centralized leaders.
   
   


3. 
   
   Cost-Efficiency: FTM's rapid settlement and low transaction costs provide a cost-effective solution for users and developers.
   
   


4. 
   
   EVM Compatibility: The integration of EVM in Opera allows developers to seamlessly migrate and interact with existing Ethereum-based applications, expanding the Fantom ecosystem's usability.
   
   


5. 
   
   Community Governance: FTM holders actively contribute to the platform's development through on-chain governance, fostering a decentralized decision-making process.