Blockchain technology can be used for many different purposes. Its main appeal is being able to securely store documents which cannot be altered at a later stage. Factom is providing such a solution as we speak, as the company focuses on being practical for those looking to preserve and validate digital assets.
What is Factom Exactly?
Factom is designed to become a practical blockchain solution on top of which to build applications. Its primary user group is the enterprise sector, although Factom is accessible to anyone who wants to focus on building dApps. With its core technology, Factom aims to provide people with the means to improve collaboration and interaction with data and digital assets. It is compatible with existing systems and can be deployed pretty quickly.
Under the Hood
As of right now, there are two key products which set Factom apart from its competitors. First of all, there is the Factom harmony product. This solution converts document management systems into a blockchain-based document platform. There are no further worries over lost or missing documents, and using this system helps reduce audit times as well. More importantly, it can help reduce costs in multiple ways, which is what most enterprises will be interested in first and foremost.
Secondly, there is the dLoc by SMARTRAC application. This tool is a breakthrough in the area of documentation authentication solutions. With dLoc, it becomes possible to secure physical documents on the Factom blockchain. Considering that Factom anchors into both Bitcoin and Ethereum as a failsafe, it is safe to say this solution is rather robust and versatile at the same time.
Factom also has a strong focus on quality control by removing documentation errors. Additionally, their products can also streamline the process of finalizing mergers and acquisitions, especially in the due diligence department. Hosting a digital identity-based project on top of Factom is certainly possible as well. This system prevents identities from being stolen or misused by nefarious individuals. This latter area is an interesting one to keep an eye on, as we’re seeing more companies focus on blockchain-based digital identities these days.
The Factoid Token
It is not surprising to learn Factom has its own cryptocurrency, known as Factoid. This token is used to purchase Entry Credits for the services offered by the platform. It is worth noting these Entry Credits are purchased from the Factom protocol itself, removing the need for intermediary solutions. Factoids can be traded against other cryptocurrencies as well, though. They are also used to maintain the server’s infrastructure and reward Audit Server operators for running the system.
What Comes Next for Factom?
For now, it does not appear Factom has a linear roadmap like most similar projects. Instead, the team is working on various features behind the scenes, and its two existing products speak volumes in this regard. We will have to wait and see what the future holds for this project, but rest assured a lot of work is being done as we speak.