Do you ever become impatient with blockchain platforms’ sluggish transaction processing times? Have high transaction costs and sluggish confirmation times ever prevented you from utilizing a blockchain-based app? If so, you are not alone. Since their inception, blockchain platforms have faced substantial scalability and transaction speed difficulties.
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Numerous blockchain platforms have evolved in recent years, each providing distinct strategies to handle these issues. Fantom (FTM), a blockchain-based platform that debuted in 2018 and has seen substantial interest in the cryptocurrency market, is one such platform. Let’s know more about FTM and how FTM provides faster transactions.
What is FTM?
Michael Kong founded the Directed Acyclic Graph (DAG)-based startup Fantom in 2018. DAG is a substitute for conventional blockchain technology that enables transaction processing in parallel, leading to quicker transaction times and cheaper costs. The platform from Fantom is built to grow with demand, allowing it to handle many transactions without compromising performance.
Since its debut, Fantom’s platform has experienced substantial growth. Fantom has a market cap of nearly $8 billion as of March 2023, placing the platform among the top 50 cryptocurrencies in market size.
Numerous decentralized applications (dApps) that demand quick and safe transaction processing use the platform, and its native token, FTM, is actively traded on several cryptocurrency exchanges.
Blockchain technology has completely transformed the movement of value and how we think about transactions. The necessity for quick and safe transaction processing is now one of the biggest issues facing blockchain networks.
Importance of fast transaction processing
Fast transaction processing is crucial for the success of any blockchain platform. Slow transaction processing can lead to congestion and increased transaction fees, which can deter users from using the platform. Fast transaction processing also enables real-time transactions, making it possible to build applications that require instant confirmation of transactions.
In addition, fast transaction processing is essential for the scalability of blockchain platforms. As the number of users and transactions increases, the platform needs to be able to process transactions quickly to maintain a high level of performance.
FTM’s consensus mechanism
One of the essential elements that make Fantom’s consensus mechanism possible is its lightning-fast transaction processing. The platform uses a modified version of the DAG-based Lachesis protocol, which allows transactions to be processed in parallel.
Fantom’s consensus process allows nodes to validate transactions in parallel, leading to quicker confirmation times and lower fees than standard blockchain platforms requiring miners.
FTM’s consensus mechanism – Image via Freepik
Overview of FTM’s consensus mechanism
The Practical Byzantine Fault Tolerance (PBFT) protocol is the foundation of the consensus method used by FTM. This protocol is known as Lachesis. FTM can handle transactions in parallel and at scale thanks to the consensus algorithm Lachesis.
In Lachesis, nodes are grouped into clusters; each one handles transactions independently. A directed acyclic graph (DAG) structure aggregates the results after nodes within a cluster use PBFT to obtain consensus on transactions. Due to the quick and safe transaction processing made possible by this, FTM is the best option for applications that need high throughput and low latency.
Advantages of FTM’s consensus mechanism
Here are some advantages of FTM’s consensus mechanism:
–High transaction processing speed: FTM can process up to 300,000 transactions per second, making it one of the fastest blockchain platforms on the market.
–Low transaction fees: FTM’s consensus mechanism allows for low transaction fees, making it an ideal choice for users who require frequent transactions.
–Energy-efficient: FTM’s consensus mechanism is energy-efficient, making it a more sustainable alternative to other blockchain platforms that rely on proof-of-work or proof-of-stake consensus mechanisms.
–Resilient to attacks: FTM’s consensus mechanism is highly resilient to attacks due to its Byzantine fault tolerance (BFT) protocol, which ensures the integrity of the network even in the event of malicious actors attempting to disrupt it.
FTM’s network architecture
The network architecture of Fantom supports fast and secure transaction processing. It comprises several layers that allow for the optimal use of network resources and parallel transaction processing. This architecture and FTM’s consensus method are major factors in how quickly transactions are processed.
FTM’s network architecture – Image via Pixabay
FTM’s network architecture is designed to be modular, flexible, and scalable. It consists of three layers: the Opera Core Layer, the Opera Ware Layer, and the Opera Application Layer. Each layer serves a specific purpose and is designed to work seamlessly with the other layers.
Benefits of FTM’s network architecture
Modular design: FTM’s modular design enables developers to easily build and deploy decentralized applications (dApps) on the network.
Flexibility: FTM’s network architecture is designed to be flexible, enabling it to adapt to changing market conditions and user needs.
Scalability: FTM’s network architecture is designed to be scalable, enabling it to handle a high volume of transactions without experiencing network congestion.
FTM’s transaction processing speed
When it comes to FTM’s transaction processing speed, you’ll be pleased to know that it’s incredibly fast. With its high throughput capabilities, FTM is able to process up to 300000 transactions per second, which is significantly faster than other popular cryptocurrencies like Bitcoin and Ethereum.
This means that when you make a transaction using FTM, it will be processed almost instantly. Whether you’re sending funds to a friend or making a purchase online, you can trust that your transaction will be processed quickly and efficiently.
FTM’s transaction processing speed – Image via Freepik
Comparison of FTM’s speed with other blockchains
An important aspect of a blockchain platform’s usability and scalability is how quickly transactions are processed. Let’s compare the transaction processing speed of Fantom (FTM) with that of other well-known blockchain systems to better understand how it compares.
Compared to Ethereum, the second-largest platform by market value, Bitcoin, the original blockchain platform, processes transactions at a rate of about seven per second. Another well-known platform, Binance Smart Chain (BSC), handles about 100 transactions per second, while Solana handles about 65,000.
Comparatively, Fantom’s technology is one of the swiftest blockchain platforms currently accessible, processing up to 300,000 transactions per second. To achieve this performance, FTM uses DAG technology, which enables parallel processing of transactions, leading to quicker transaction speeds and lower fees.
To summarize the comparison of transaction processing speed between Fantom and other blockchain platforms, we can use the following table:
Blockchain platforms and transactions per second
This following data was found after researching every platform transaction speed through the respective platforms:
Bitcoin – 7
Ethereum – 15
Binance Smart Chain – 100
Solana – 65,000
Fantom – 300,000
FTM’s fast transaction processing
Fantom’s DAG-based consensus mechanism and effective network design work together to produce its quick transaction processing. The bottleneck traditional blockchain platforms experience while processing transactions one at a time is removed by the DAG structure, which enables parallel processing of transactions.
Due to FTM’s ability to execute many transactions simultaneously via parallel processing, transaction confirmation times are shortened, and fees are reduced.
Furthermore, FTM’s highly effective network architecture enables it to support a large volume of transactions without compromising performance. The network is split into distinct shards that may each process transactions independently, boosting the network’s scalability and speed even more.
Because of these qualities, FTM is the best option for decentralized apps that need quick and safe transaction processing.
Factors contributing to FTM’s transaction processing speed
–Low transaction fees: FTM’s transaction fees are significantly lower than other blockchain technologies, making it an affordable option for users.
–Scalability: FTM’s network architecture is designed to be scalable, enabling it to handle a high volume of transactions without experiencing network congestion, which can slow down transaction processing.
–High throughput: FTM’s high TPS enables it to handle a large number of transactions simultaneously, ensuring quick transaction confirmation times.
Conclusion
The robust blockchain technology FTM provides the capability for processing transactions at breakneck speeds. It can execute transactions far more quickly than other blockchains thanks to its novel network architecture, consensus method, and DAG technology.
Any blockchain platform that processes transactions quickly will be successful, and FTM is the best option for a variety of use cases because of its real-time transactions, reasonable fees, and high throughput.
Recap of FTM’s lightning-fast transaction processing
FTM’s lightning-fast transaction processing is due to several factors, including its DAG architecture, Lachesis consensus mechanism, multi-layered network architecture, node distribution, low transaction fees, and fast block confirmation times.
Future outlook for FTM
Fantom’s prospects appear bright as it continues to grow in popularity and draw new users. The network is well-positioned to compete with other top blockchain platforms thanks to its focus on scalability and quick transaction processing.
Furthermore, FTM appears to be headed for even greater success, given its relationships with several significant businesses and initiatives, such as Binance and Chainlink.
However, FTM will have to overcome several difficulties and potential impediments, as with any newly developed technology. For instance, some have expressed doubts about the platform’s long-term viability due to its reliance on DAG technology, while others have voiced worries about the network’s centralized nature.
As the blockchain industry continues to evolve, it will be fascinating to see how Fantom and other emerging platforms adapt and innovate to meet the ever-changing needs of the market. What do you think? Will FTM continue to thrive, or will it face challenges that threaten its success?
