What is Factom? How Factom's Blockchain Solution Will Simplify The Mortgage Industry?
Factom can be understood as a decentralized and distributed protocol that creates an additional layer of data over Bitcoin. The covenants ensure that the data is stored in an unalterable and incorruptible manner. It is one of the first usable technology that offers a solution to real-world problems. It is an open source that is not governed by anyone and is accessible to everyone.
Factom is compatible with the existing system and can be deployed by anyone to create new applications that use blockchain technology. The software uses a single hash to store and secure millions of transaction. It maintains integrity of stored data and provides complete transparency in the growing digital world.
It is an indefectible platform for various applications like financial system, supply chain management, property title, etc. Factoids (cryptocurrency symbol is FCT) are the underlying token that allows to record any transaction in the factom network.
Factoms are known to solve three major problems faced by the Bitcoin network, speed cost and size. It takes around 10 minutes to confirm a single transaction in the Bitcoin network and almost an hour to fully process it after 6 confirmations. The cost of these transactions has been rising. With the limited size of the block caps the volume of the transaction.
Factom - Team and Progress
Factom project began in 2014 and has been growing since then, the first version of Factom was released in early 2015 and currently has around 11 million entries with some notable partnerships.
The core team of Factom has various members including Peter Kirby, Co Founder and CEO of Factom, Abhi Dobhar, the Vice President of product Management, etc. the company has many competitors like NEM, tat released its whitepaper in early 2018.
How does Factom work?
There are two tokens used on a Factom network - Factoids and Entry Credits.
- Factoids are tokens that can be freely traded on the network like other popular currencies. Factoids ae also paid as the reward to the Factom server for upkeeping the network. Server ensures that users do not spam the network.
- Factoids can also be used to purchase Entry Credits that are non transferable tokens used to pay for entries or to vote for Federated servers. They carry low intrinsic value and less risk. These entry credits are important to add data to the Factom blockchain.
Each entry had a Chain ID that determines which sub group will accomodate that entry. The maximum size of these entries is 10KB but one can use multiple entries to join larger files. Each entry acts like a file that is entered in the folder called the Chaina All the hashes required for encryption of data are stored in an Entry Block. Entry block stores only hashes and not actual data.
Using the timestamping process, the Federated servers group together various hashes of the entry block in a Directory Block. Once 10 Directory Blocks are created, the hashes are then anchored to the Bitcoin blockchain. Factom also uses a consensus mechanism that allows the network to choose a leader from the Federated Servers.
Factoids can be purchased from BIt-Z, Poloniex, Bittrex along with Bitcoin. There are two wallet options available to store Factoids- Factoid Papermill and secured Enterprise Wallet, available on Mac, Linux, Windows.
How can Factom revolutionise Mortgage Industry?
Apart from enhancing the process of record keeping, blockchain technology has revolutionised the traditional mortgage process. Data breachment comprising sensitive consumer information has become very common these days, Factom provides a practical solution to safeguard data, customer information and certainty to customers.
Factom Harmony was the first commercial product for the mortgage industry. As a combination of Factom blockchain technology and advanced cryptographic tools, Factom Harmony provides a new kind of vault for all the loan documents. It allows each party to store their files, documents and data guarded within the data centres. It creates a loan index that reduces smoothens audit, diligence cost and time. It provides a synergistic platform to verify and validate transactions, confirming asset ownership and transfer of ownership. Factom Harmony is a simple security model that is easy to use, understand and integrate.
Factom allows to eliminate the central server if there is a need for a central server to coordinate processes. Factom allows to store all types of data, which makes it an ideal platform for a wide range of applications like medical records, financial statements, voting system, property titles, etc.