#### What is Fantom? Fantom is a decentralized [smart contract](https://www.coinbase.com/learn/crypto-basics/what-is-a-smart-contract) platform that aims to address the limitations of previous generation blockchains by balancing scalability, security, and decentralization. It was created as an alternative to [Ethereum](https://www.coinbase.com/learn/crypto-basics/what-is-ethereum) and uses its own unique consensus algorithm, known as Lachesis. The platform is powered by its native utility token, FTM, which is used for payments, network fees, [staking](https://help.coinbase.com/en/coinbase/trading-and-funding/staking-rewards/eth-2-0-staking), and governance. Fantom was founded by South Korean computer scientist Dr. Ahn Byung Ik and is overseen by the Fantom Foundation. The platform's mainnet, OPERA, was launched in December 2019. #### How does Fantom work? Fantom operates using a unique [consensus mechanism](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/consensus-mechanism-protocol) known as Lachesis, which is an asynchronous Byzantine Fault Tolerant (aBFT) Proof-of-[Stake](https://www.coinbase.com/learn/crypto-basics/what-is-staking) ([PoS](https://www.coinbase.com/learn/crypto-basics/what-is-proof-of-work-or-proof-of-stake)) consensus mechanism. This mechanism allows for efficient transaction processing, with thousands of transactions per second being settled in 1-2 seconds at a fraction of a cent per transaction. The Lachesis [protocol](https://www.coinbase.com/learn/crypto-basics/what-is-a-protocol) is the core consensus layer that secures the Fantom network by providing both transaction speed and security. Fantom also features an application development layer, Opera, which hosts [decentralized applications](https://help.coinbase.com/en/wallet/other-topics/what-is-a-dapp) ([DApps](https://www.coinbase.com/learn/wallet/guide-to-dapps)) and supports the Solidity programming language, allowing users to interact seamlessly with Ethereum platforms while maintaining the advantage of Fantom's transaction efficiency. #### What are the potential use cases for Fantom? Fantom aims to facilitate [decentralized finance](https://www.coinbase.com/learn/crypto-basics/what-is-defi) (DeFi) and related services on the basis of smart contracts. It provides a set of tools to simplify the process of integrating existing DApps and offers a detailed staking reward system. Fantom also features on-chain governance where users can vote with FTM [tokens](https://www.coinbase.com/learn/crypto-basics/what-is-a-token). The platform's high transaction speed and low cost make it suitable for a wide range of applications, from financial services to gaming and NFTs. Furthermore, Fantom's commitment to sustainability and low energy consumption makes it an attractive choice for developers looking to build eco-friendly applications. #### What is the history of Fantom? Fantom was created in 2018 by Dr. Ahn Byung Ik, a South Korean computer scientist. The Fantom Foundation, which oversees the platform, was also established in the same year. The mainnet of Fantom, known as OPERA, was launched in December 2019. Since its inception, Fantom has strived to overcome the limitations of previous generation blockchains by focusing on scalability, security, and decentralization. The platform has attracted a global team of specialist engineers, scientists, researchers, designers, and entrepreneurs. Through token sales in 2018, Fantom raised almost $40 million to fund its development.