Factom (FCT) is a blockchain protocol built on top of Bitcoin. The coin has been catching some attention as it continues to rise topping more than 20% in gains today.
FCT is essentially a trustless ledger technology that protects and decentralizes information with a strong focus on maintaining user anonymity. Governments, businesses and even schools can store different forms of data safely with no fear of alteration or loss through use of Factom.
FCT is particularly useful for businesses in which important data regularly change hands. Documents such as land grants and medical records need to have ensured accuracy as they pass from one person to the next.
Storing data on the blockchain provides an immense amount of value to these businesses. Maintaining paper records is expensive and traditional digital storage is vulnerable to malicious tampering.
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Factom (FCT) attempts to fix a trio of issues in the Bitcoin network:
- Speed – Bitcoin transactions take at least 10 minutes for a single confirmation. With a community standard of 6 confirmations before a transaction is fully processed, many of them take over an hour.
- Cost – Bitcoin transaction fees have been increasing and may continue to do so as more transactions enter the network.
- Bloat – With 1MB block sizes, the number of possible transactions per second is capped. Even the implementation of Segregated Witness (SegWit) and the Lightning Network may not be enough of an improvement to curb Bitcoin’s scaling issues.
As Ether was the fuel for Ethereum you can think of Factoids as being the underlying motor for Factom. It allows the users to upload or “hash” data into the network and works as something of an anti-spam net. When you purchase Factoids, or FCT, you can then trade them for entry tokens which allow you to hash. So as you can probably put together, the more applications that are designed using Factom, the more factoids become worth.