Executive Summary - fantom.foundation · Executive Summary 2018 © FANTOM. All Rights Reserved. v0.8 May 25, 2018 fantom.foundation FANTOM, Beyond Blockchain.

Executive Summary

2018 © FANTOM. All Rights Reserved.

v0.8 May 25, 2018

fantom.foundation

FANTOM,

Beyond Blockchain.

v0.8 2018 © FANTOM. All Rights Reserved.

Disclaimer - Information provided is not for general distribution but is provided to give general knowledge to those interested in FANTOM. This is not an offer, invitation or a recommendation of an investment, nor purchase of the product. It is a description and plan of how FANTOM Foundation will proceed in developing the platform. Individuals are required to seek their own independent legal advice and no legal liability shall be subjected to this summary.

02

Blockchain technology has provided a way to maintain consensus across all nodes with no central authority. The technology, however, faces fundamental issues like real-time transaction settlement and scalability. Despite improved consensus algorithms, current blockchain implementations use nodes that synchronize one block at a time. Slow confirmation times are one of the biggest factors stopping blockchain technology from being widely used across industries. Although third-generation Smart Contract platforms such as Cardano and EOS have emerged, the scalability issues within these block-chain still remain. To address these persistent issues, a new technology, based on the Directed Acyclic Graph (DAG), was developed. Newer platforms that improve on current blockchain scalability, such as IOTA, Hashgraph and Nano, are all based on DAGs. This new technology is able to guarantee real-time transactions because nodes process transactions asynchronously, while ensuring infinite scalability and potentially achieving hundreds of thou-sands of transactions per second as more nodes participate in the network. DAGs are efficient because blocks are completely removed from transac-tions and thus no miners are needed. In a DAG, each transaction is linked from one to another and since there are no miners in the system, transaction times will improve as more people use it. Platforms such as IOTA and Nano, however, lack the Smart Contract dApp infrastructure to challenge Ethereum.

Beyond Blockchain

FANTOM is the world’s first DAG based Smart Contract platform that solves the scalability issues of existing public distributed ledger technology. The platform distinguishes itself from the traditional block ledger-based storage infrastructure by employing an improved version of existing DAG-based protocols. The FANTOM platform adopts a new protocol known as Lachesis Protocol to maintain consensus. Applications built on top of the FANTOM OPERA Chain enjoy instant transactions and near zero transaction costs for all users.

FANTOM Platform



03

Using a DAG, the Lachesis Protocol is responsible for saving transactions that are connected by a chain of events. Like a blockchain, the OPERA Chain is saved on each node that participates in the network. To validate trans-actions on each node, a node known as the witness node checks validity across all nodes. Unlike many other DAG based platforms, the Lachesis Protocol will not only secure and speed-up transactions above 300,000 TPS, but also provide an open-source and permissionless platform.

The OPERA Chain

The Lachesis Protocol

Main Net

Platform

Middleware

Application

Scenarios Supported

•Verification of People

•Reputation Evaluation

•Community Management

•Data Collaboration & Exchange

•Verification of Objects

•Financial Services

•Equity Management

•Content Generation & Trade

TPS Performance

FANTOM

STEEM

EOS

CARDANO

FANTOM STEEM EOS CARDANO

300,000

100,000

10,000

258



04

The FANTOM architecture is divided into three layers. The bottom layer is called the OPERA Core Layer. It is responsible for creating events and main-taining consensus across all nodes via the Lachesis Protocol. The middle layer is called the OPERA Ware Layer. It will provide the functionality for payments, issuing rewards, incentives, and Story data. Finally, the top layer is called the OPERA Application Layer, and will provide publicly available Application Programming Interfaces (APIs) for applications to use features of the OPERA Ware Layer.

Architecture

Ethereum has limited capability of tracking past transactions. On the FAN-TOM platform, however, previous transactions can be tracked based on the root hash value called Story Root for all transactions. The story root embrac-es all relevant data starting from the point of their creation. It provides an ideal tool for supply-chain management. For example, the meat used for a canned ham could be traced to its origin when using FANTOM.

Story Root

FANTOM provides a SCALA-like functional programming language for exe-cuting Smart Contracts on top of its own Virtual Machine known as the FAN-TOM Virtual Machine (FVM). The FVM will allow executive smart contract byte code efficiency and across all operating systems.

Smart Contract Language



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FANTOM will become the first platform to disrupt the existing infrastructure for payments and supply-chain management. dApps built on top of the FANTOM OPERA Chain will provide transparency and cost reductions for industries including, but not limited to, food technology, telecommunication, banking, electricity and real estate to autonomous vehicles using instant payments with near zero cost while maintaining hundreds of thousands of transactions per second.

Application

Food-TechTelecommuni-

cation

Internetof things Retailers

4th IndustrialRevolution

FinancialServices

GovernmentAdministration

&Public welfare

Logistics

Verificationof Things

Payment, Reviews & History info tracking

Artificial Intelligence & Autonomous Vehicle, etc.

Distributed ReputationManagement

DistributionManagement

Distributed LedgerManagement

Reduction of card fees & Stock keeping

Cross-CarrierManagement

The FANTOM Foundation has partnered with the South Korea Food Tech As-sociation, whose members include the top 90 leading companies in the 200 billion USD food market in South Korea. The foundation will provide dApps including those used for food reservations, geolocation delivery services, and supply-chain management, all of which are points of sales to be built on top of the FANTOM platform. Additionally, The foundation’s top sales team will promote FANTOM to retailers and street vendors whose current transaction fees (cf. VISA / Mastercard etc.) cost up to 5% of each sale. Once the poten-tial of the Smart Contract platform is settled within the South Korean food technology industry, the foundation will host an international consortium to provide tools and APIs for software development, online and offline payment

Marketing Strategy



06

There are 3.175 billion FANTOM (FTM) tokens. The FANTOM platform adopts an inflationary model to expand the ecosystem. There will be initially a 5% annual inflation rate which decreases as more users join the network. 20% of the total inflation would be used to reward nodes and the rest would be used to provide incentives for FANTOM platform users such as near zero transaction fee and to reward users contributing to maintain a good flow of the ecosystem.

Token Economy

The FANTOM tokens will be distributed in the following manner:

- 40% Token Sale

- 30% Market Development

- 15% Advisors / Contributors

- 15% FANTOM Team & Founders

FANTOM Token Allocation

40%Token Sale

30%Market Development

15%Advisors / Contributors

15%FANTOM Team& Founders

systems, Smart Contract templates and a variety of APIs around the world. A significant amount of the funding will be used to incubate FANTOM devel-opers and host conferences with global offices including those in Japan, Australia, Singapore, and the U.S.



07

By 2018 Q2, the FANTOM DAG-based consensus mechanism known as the Lachesis Protocol will be validated by the Yonsei University research team. The FANTOM wallet will also be developed and a token swap will occur. Furthermore, FANTOM’s overall software architecture will be finalized. By 2018 Q3, the OPERA Ware and Middleware Layers responsible for providing features including reputation, incentive, and payments for applications will be released to the public in the testnet. By 2019 Q3, the full Smart Contract platform along with the Mainnet will be launched.

Roadmap

Intermezzo

15 June, 2018

Validation of the Lachesis Protocol

Middleware beta launch

Generation of the ERC-20 token

Seria

3Q, 2018

Middleware Layer

Public API disclosure

Buffa

1Q, 2019

Completion of OPERA Core Layer Development Functional language beta

Virtual machine beta

Operetta

3Q, 2019

Mainnet launch

Grand OPERA

2Q, 2020

Global platform expansion

System model expansion

FANTOM Council establishment



08

The team consists of top engineering and marketing professionals from around the globe. Team members have graduated from schools including Seoul National University, KAIST (Korea Institute of Science and Technology), Yonsei University, and the University of Sydney.

Dr. Ahn is the CEO of the FANTOM Foundation. He holds a Ph.D in com-puter science from Yonsei University and has been awarded the President Award for his successful IT business. Ahn is a contributing writer at Fortune Magazine, an adjunct professor at Konkuk University, and has been featured in South Korea’s major business media outlets. In 2010, Dr. Ahn established a successful food-tech platform SikSin, which has since acquired over 3.5 million downloads and 22 million monthly views. SikSin would be one of the first companies to implement the FANTOM technology, building applications for payments and reputation management.

Team

To create the world’s first DAG Smart Contract platform, the FANTOM Foun-dation is collaborating with well-known organisations from around the world. Partners include blockchain academic researchers, institutional investors, marketing firms, and global engineering teams.

Partners



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Investors

Executive Summary - fantom.foundation · Executive Summary 2018 © FANTOM. All Rights Reserved. v0.8 May 25, 2018 fantom.foundation FANTOM, Beyond Blockchain.

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