Factom, the open-source, non-profit organization with the latest and greatest development for Bitcoin beyond currency.
Factom has built a data layer on top of the bitcoin blockchain, opening the doors to the infamous bitcoin 2.0. The project currently in beta, represent the long awaited infrastructure where currency is not the point, its data.
People think of the blockchain as a ledger for all transactions that have ever been conducted using bitcoin, but this is not entirely true. The blockchain can be used to encode any small amount of data, making it publically verifiable and existing in the blockchain forever. But, the blockchain is currently restricted to 7 transactions per second by a limit on the size of a block. This is where Factom comes in.
Factom uses the ‘immutable ledger of Bitcoin’ to create an entirely new system of storing data, Factom is the beginning of decentralized databases.
Factom has built a service that allows for additional data to be stored and then encoded into the bitcoin blockchain, allowing for entirely new use cases for bitcoin related services.
Factom uses the ‘immutable ledger of Bitcoin’ as the proof of existence for their own data. Opening the doorway’s for the creation of decentralized data centers running off the blockchain. Things like tracking shipping containers, a cumbersome process managed by 6 companies worldwide could be uploaded into the bitcoin blockchain, allowing for every container to be tracked in real time and verifiable by anyone, no centralized authority necessary and this is only the beginning.
Factom aims to change the concept of bitcoin from talking about ‘coins’ to talking about ‘data’. Instead of focusing on a value based transaction, Factom focuses on a decentralized data network. This transformes what is possible to accomplish with the bitcoin blockchain, this is the much anticipated bitcoin 2.0.
This is the point of Factom, to create decentralized databases, immutable records, no corruption, no loss of data. A myriad of use cases are waiting to be developed upon this technology.
What are Factoids?
Factoids are the currency used within the Factom network; they are purchased for bitcoin and are necessary to encode data into the Factom network. Factoids prevent spam and ensure a decentralized network. You can buy your own ‘factoids’ on their site now. Factoids will be required to encode data into the Factom network so will be required for business in the future.
Factom represents an exciting new development for bitcoin, opening entirely new applications for the technology beyond a currency, no one knows what this development will bring but this technology represents solutions to problems we see in businesses today. It will be exciting to see how this technology develops as it has the potential to revolution many flaws within existing database systems. Factom is currently in beta with its final launch date soon to be scheduled, to read the Factom white paper click here.