Factom : Decentralising Enterprise Data for Corporate Convenience
Paul Snow, an IT veteran with decades of network building and probabilistic rule defining experience, started Factom. The cryptocurrency that aims to share documents and store data behind the security, decentralisation and finality of the blockchain. “We started Factom to build a more honest and transparent world. We take a pretty simple approach: create software that make it impossible to change the past and point that software at places where it solves valuable business problems. - Peter Kirby, CEO of Factom,
7 Days Change
What is Factom Trying To Do?Factom is a company utilising blockchain solutions to move and store data. Big data is massive and companies invest small fortunes into better managing documents. A blockchain solution offers numerous advantages over traditional data storage, and Factom are optimising these innate properties of cryptography for enterprise clients and big business. Factom is targeting Fortune 1000 companies. They can save time coordinating compliance audits and consolidating data across multiple external and internal sources. Harmony is a tool built by Factom that allows companies user friendly access to this information. If what Jason Nadeau and Jay Smith, the sales and marketing executive team for Factom, are saying is true, then Harmony is functional and usable by clients. In an AMA, Jason Nadeau announced that features like Audit Entries, Milestone Entries, Decision Entries and interlinking Data Provenance Entries are all being added to Harmony. He went on to comment that earlier versions of Harmony were so similar to regular document and data management software that client’s didn’t understand that it was blockchain. There aren’t many cryptocurrencies on the market that can actually claim to have a working product. I know that I won’t be able to say that for much longer, but Factom has a massive first movers advantage in this space. In the same AMA, the marketing team revealed that they demonstrated Harmony in over 25 meetings at the annual Mortgage Bankers Conference. The Factom network is built by two groups of servers or network actors. Federated servers are the full nodes in the network. They can record and add transactions to the chain. They can also send receipt messages to the nodes that sent them entries to publish. There is no mining involved in this process, and consequently very little computational work is required by these nodes. Federated servers are rewarded in FCT tokens for their contribution to the network. The network is instead secured by audit servers. These nodes aren’t rewarded for auditing, but they check the network for malicious intent. If a Federated Server misbehaves and is voted out, the highest ranking Audit Server takes its place becoming a Federated Server. Factum users submit data by paying with Entry Credits. These are a secondary t oken on the platform. The process that creates entry credits also burns Factom. A single Entry Credit is equivalent to 1kb of data on the chain. Once a minute, a federated server adds the chain IDs together and enters those blocks into a Directory Block. This pairs it with a hash that links it to the next entry block. The Factom network is also periodically checked against the Bitcoin network. Every 10th Directory Block is hashed and added as a definitive anchor to the Bitcoin blockchain.
How Does The FCT Token Fit Into All Of This?
Using Merkal trees and chain IDs, the Factom network can compress and store a large amount of information in a single block. This make the network affordable at scale. The Factom platform was designed so that higher transaction volumes increase token prices. To pay the federated nodes 73,000 tokens are generated each month. If the currency is inflationary or deflationary, depends entirely on if more or less that 73,000 tokens are burnt in a month. This is an easy to understand, clear cut , economic process. More tokens are created and the value goes down. Less tokens are created and the value goes up.