When Bitcoin blockchain was discovered, it opened the lid for similar technologies applications at different levels. For some cryptocurrencies, the strategy of entering the market and growing rapidly does not involve developing new platforms. Rather, they ride on the existing blockchains by developing tech-layers that operate on top of them. One such Cryptocurrency is Factom. Here is a complete review of Factom.
What is Factom?
Factom is a distributed and fully decentralized protocol operating on the Bitcoin platform. That means that there is no central person or authority that controls the Cryptocurrency. The main focus of Factom is securing data and systems. This role that differs from other cryptocurrencies that mainly focus on trading has made Factom to get often referred as an auditing and publishing engine. Users are allowed to write data on the Factom for a small fee. But once you add the data, it cannot be undone.
Factom was started in 2014 by software developers and entrepreneurs Paul Show and David Johnson. Factom was established to remedy key challenges that became evident with the original Bitcoin. The founders sought to lower the cost of entering data in Bitcoin that was very prohibitive. Shaw, one of the founders, indicated that Factom targeted using layers of technology to redefine data storage and make handling volumes easy, fast, and highly convenient.
On top of making it possible to handle large quantities of data, Factom further sought to enhance tracking capabilities. Unlike the common blockchains that apply high levels of anonymity which makes it impossible to stitch together personal data, Factom is different. The platform allows users to chain together all the data that a person considers very important.
How Factom Works?
Factom as a platform for data management
Factom is a data technology used mainly by applications. The current or new applications are allowed to publish relevant data on the blockchain utilizing Factom API calls. It requires users to acquire Factoids (FACT) that are used for purchasing entry credits when users want to store data.
If you are new to Factom, the first thing is opening an account on its site and installing the blockchain on your computer. Every time that you enter data, the platform uses hashing model to run it through millions of different internodes simultaneously in the blockchain. By applying the latest Factom protocol, it becomes possible to utilize Bitcoin for securing its clients.
Once an entry has been added in the blockchain, immutable trails are secured to allow users carry both external and internal audits. The platform creates a standard and secure foundation that makes adding data, storage, and retrieval faster and cheaper. It is this unique mode of synonymous data storage that has made top companies to prefer Factom to the more established blockchain platforms. Some of the unique operations that are run on Factom include;
- Medical records
- Immutable audits
- Voting systems
- Legal applications
- Service Level Agreement Logs
- Journaling applications
Factom as a platform for apps development
To stay ahead of others, Factom does not only deal with data and data management. It is also a platform for building related applications to pay over the Bitcoin blockchain. While riding on the security of Bitcoin chain, Factom allows its users to use simple API for designing apps for new operations. This has enabled the platform to look further without worrying more about the basics that have been covered by Bitcoin.
It is the mode of operations that makes other blockchains to lose their market share for Factom progressively. The cohesiveness with other blockchains especially Bitcoin has made it possible for mutual benefits to both companies and their users.
The main features of Factom
Factoids: This is the Factom’s Cryptocurrency name just like Ether is to Ethereum. Factoids are used to purchase the entry credit for various transactions. Though Factoids can be traded in the main Cryptocurrency market, they can only be implemented in the Factoid platform.
Factoid masternodes: Like other cryptocurrencies, Factoid uses masternodes to store its data. Once a masternode joins the platform, he is required to keep the source open to trade using Factoids in the network.
Key pros of Factom
- Factom guarantees its users of total data security.
- Its mode of operation is highly simplified. You use Factoids to buy space for your data storage. Though this simplicity could, in the end, work to the disadvantage of the blockchain, it has helped to win trust from more people.
- The ability of Factom to allow data traceability has made it unique and even attracted big data companies that want to carry regular audits.
- The cost of storing data in the blockchain is lower compared to other platforms such as Ethereum and Bitcoin.
The main disadvantages of Factom
- It rides on other cryptocurrencies. This means that it does not have absolute control of the entire system. Even when working so hard on its side, flaws or decisions that do not favor Factom from Bitcoin can negatively affect its existence.
- The value of Factoids is very low which makes it less attractive especially to people intending to invest in cryptocurrencies. In many cryptocurrencies, the core target is the bond value as opposed to the potential risks involved. Factom’s mode of operation is, however, inverse.
Where to Buy and Sell Factom in Australia?
Crypto Currency for Fun recommends buying Factom at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Factom and they offer Instant Delivery or your coins right into your account.
Factom has adopted a unique model of operation in the Cryptocurrency world. By solving the problem of data, more users including big companies have found it very attractive. However, this is likely to work to its disadvantage in the future because other bigger cryptocurrencies are equally working to resolve the same issues. Despite this, the platform is likely to continue growing steadily in the highly competitive market.