Introduction to Factom (FCT)

Factom was created by Paul Snow in June 2014, making it one of the oldest cryptocurrencies, but today has grown to have a team of over 30 experienced people. Factom’s idea is simple, to verify the integrity of data in the blockchain, creating an unalterable records system.

FCT has a protocol that registers information, and that registry can never be changed. FCT focus, therefore, on the protection and decentralization of information, while maintaining anonymity from users.

Factom checks who places the information on the blockchain, when that happened and what they put there, but it doesn’t check if what it was placed is correct or not. It’s a registry, not a cross-check of data. This seems ideal for public information that is necessary to be safely stored, like birth certificates or ID numbers, as well as ownership documents.

Businesses or governments that want to store data safely and immutably can use Factom. Unlike most other cryptos, FCT uses the Bitcoin blockchain, precisely because the information stored there is immutable.

By preserving the documents unchanged, Factom validates their authenticity. Let’s see the example of the Factom Harmony project, focusing on the mortgage industry, a co-work with Bill and Melinda Gates Foundation and the Department of Homeland Security, being the goal to attract banks to store their sensitive data.

Managing documents in a more effective way, a more transparent and secure process is created, locking everything in the blockchain, in what can be called the perfect digital vault for each process. Do note that this not only improves the relation between lenders and borrowers, but also makes easier for selling loans to other companies.

If a bank is selling debt to a debt collector, a huge audit and all the associated expenses would be necessary. If all of this was registered in Factom, this step would be safely skipped. The partnership with the Bill Gates foundation is extended to a project to track medical records in third world countries, solving the issues of record keeping in those countries.

The success of Factom will depend on the number of partnerships they can establish in the next years, as only that would make them progress and grow. If no partnerships and companies start use Factom, it will just remain as a good concept, with no utility.

This is a brief introduction to Factom, but if you want to know more about the coin, what people are saying about it, technical details, jump right in any of the links we present below. They are well worth reading before investing!