A decentralized network called Factom is built on the basis of a blockchain technical process and demonstrates what should be the largest database for storing information in a chain of blocks. The platform is oriented towards Bitcoin, but, unlike the latter, it tries to solve three main problems that eventually arose with the most popular cryptocurrency.
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First of all, we are talking about the speed of transactions, because it's not a secret that the Bitcoin network can process the operation for about an hour. In addition to the main problem, users faced two more important factors: an increase in commission fees for network participants and a small block size, which can not accommodate the increased number of transactions. In the latter case, even the implementation of the SegWit function did not help, which can be considered an attempt to scale the Bitcoin network.
Factom is ideal for storing data and documents of organizations, whose work is built on the exchange of information. This saving and use of files has an extensive list of undeniable advantages. And given that paperwork is already inefficient and expensive, server storage is not safe – it is Factom that is a potential leader in document management.
In the back of the network, Factoids coins are used, which work in a separate chain of blocks. Due to its participation, the cryptocurrency asset does not allow the network to be spammed by unscrupulous users. Remuneration in the form of Factoids currency are distributed among Factom servers in a limited edition of 73 thousand coins. For ordinary network users, there is a protocol that uses an input credit (EC). Thanks to this mechanism, the records are paid to the database registry and voting on the platform.
Having made the next record in the decentralized register, the block chain identifier appears, which, subsequently, is used to connect large files. Based on the records, a log is created, and then a catalog containing the history of creating the blocks. Unlike Bitcoin, Factom does not require a complete history and can check transactions using catalogs and data logs.
Primary servers of the network have received the name of federated ones – they receive remuneration for new entries in the chain of blocks. Above primary servers there are auditors testing errors and managers by work of all servers.
The launch of the Factom project took place in 2014 and for all of its existence, the number of users has grown to 11 million records. Among the most influential members of the network are the US Department of National Security and a foundation founded by Bill Gates. The closest Factom in the spirit is the NEM cryptosystem.
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Buy or sell FCT coins can be on such large online exchanges as Poloniex and Bittrex. To store the same cryptocurrency is recommended on the company's wallet FactoidPapermill. Also, the developers are working on the introduction of modern versions of the new FCT purse.
The founders of Factom continue to improve their network and implement new service functions on its basis. To date, Factom represents a real help in the work of traditional organizations, so large investors must certainly ensure the development of this crypto-active.
Editor: Yulia Krasnaya