How does Fantom work?

Fantom is a blockchain-based distributed ledger technology (DLT) platform that uses a new consensus algorithm called “Lachesis”.

This algorithm is based on the concept of directed acyclic graphs (DAGs) and is designed to be more efficient than traditional blockchain consensus algorithms. The Fantom platform consists of two main components: the Fantom Operating System (FOS) and the Fantom Network. The FOS is a layer-2 protocol that provides a platform for developers to build decentralized applications (dApps).

It also provides an interface for users to interact with the network and use its services. The Fantom Network is a public, permissionless blockchain that enables users to securely store and transfer data, as well as create smart contracts. The Lachesis consensus algorithm works by creating blocks of transactions that are validated by multiple nodes in the network.

Each node has its own version of the ledger, which it updates independently from other nodes in the network. This ensures that all nodes have an up-to-date version of the ledger at all times, eliminating any need for a central authority or third party to validate transactions. The Lachesis consensus algorithm also uses an asynchronous Byzantine Fault Tolerance (aBFT) mechanism to ensure that all transactions are valid and secure.

This mechanism works by having each node in the network verify each transaction before it is added to the ledger, ensuring that only valid transactions are added to the ledger. In addition, Fantom also utilizes a unique token called FTM which can be used for various purposes such as staking, voting, and paying transaction fees on the network. FTM tokens can also be used as collateral for loans or other financial services provided on the platform.