Author: Peter Todd 2015-03-16 22:12:59
Published on: 2015-03-16T22:12:59+00:00
The Factom protocol is designed to create a proof-of-publication medium where facts can be published and the token incentivizes people to maintain the infrastructure required for that medium. Factom servers provide a layer used by secondary proof-of-publication ledgers, and publishing records in the Factom layer proves that the secondary layer of actual facts is being maintained honestly. However, the Factom consensus layer requires trusting Factom servers, which may break the ability to prove that Factom-secured records are honest. Additionally, it is possible to secure ledgers in the Bitcoin blockchain technically without using Factom, although transaction fees must be paid. Threshold signatures can ensure that a majority of cities have to sign off on any updates to a meta-ledger for all their per-city property title systems. The only disadvantage to securing records directly in the blockchain is paying transaction fees. Ultimately, the viability of Factom and the value of its token depend on Bitcoin transaction fees rising or people choosing to use more complex and less secure systems over simpler ones.
Updated on: 2023-06-09T18:46:40.221597+00:00