Published on: 2015-03-29T14:20:43+00:00
On a Bitcoin mailing list, Brian Deery shared a link to a Reddit thread discussing the launch of Factom's software token. Peter Todd requested that Deery explicitly list what he believes Factom prevents from happening as its primary function is security software. Factom aims to create a publishing platform that is resistant to both censorship and spam. It operates as a censorship and spam resistant third party similar to Bitcoin. The system is designed to be visible if someone tries to censor it, with other members actively fighting against any attempts at censorship. Factom sits in a sweet spot between Proof of Work and a centralized solution, making it a good option for interpreted protocols. The Factom protocol allows users to choose how they audit data independently of the packager, serving as proof of publication (POP). It enables users to create a dispassionate third party, while interpreted protocols like Counterparty filter out invalid transactions after the fact.The main goal of Factom is to create a proof-of-publication medium where facts can be published, and the token incentivizes people to maintain the required infrastructure for this medium. Factom servers provide a layer used by secondary proof-of-publication ledgers. By publishing records in the Factom layer, it proves that the secondary layer of actual facts is being maintained honestly. However, the consensus layer of Factom requires trust in Factom servers, which may compromise the ability to prove the honesty of Factom-secured records.It is worth noting that it is technically possible to secure ledgers in the Bitcoin blockchain 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 of securing records directly in the blockchain is the payment of transaction fees.In conclusion, the viability of Factom and the value of its token are contingent on Bitcoin transaction fees rising or people choosing more complex and less secure systems over simpler ones.
Updated on: 2023-08-01T12:05:34.354284+00:00