Our lives and finances depend on records: financial records, real estate records, and citizenship records, among others. But those records are kept by centralized databases – which, as we’ve learned from recent data breaches at Target and Equifax, are vulnerable to hacking. Factom leverages the decentralized security benefits of the blockchain to create an easily-verifiable way to keep old data and records safe. When you record something on Factom, it’s secure and can’t be changed or erased.
What It Is
How It Works
The Factom protocol is a data layer anchored into the Bitcoin blockchain, which efficiently extends its immutability and security benefits to any form of data. If you’re new to blockchain, it’s best understood as a distributed ledger: a database of information that’s stored across a large network of independent computers rather than in one centralized location. It’s more secure and less easy to hack or tamper with than a centralized database. Simply put, the Factom protocol creates a system that provides different parties with a single version of the truth. It’s applicable to most industries, and allows businesses to share and secure their data and transactions in a reliable, easy-to-access way.
Factom is also unique in that the cost to write data to the blockchain is fixed and unrelated to the wider cryptocurrency market. This is because of its unique two-token system (which you can read about below), but you don’t need to fully understand that system to understand its benefits: essentially, when a company secures its data with Factom, they can do so while knowing exactly what it will cost, and without using or holding any cryptocurrency. Because of this, Factom is the only blockchain data solution that’s ready for enterprise adoption in the real world.
- Learn more about the Factom protocol here and here.
- Learn about Factom’s use cases and business potential.
- Learn more about the two-token system here and here.
- Crypto investor? Learn about Factom’s price floor.
- Multicoin Capital’s Factom analysis and valuation.
- Factom’s white paper and company homepage.