By Judith Jakubovics- BizDev at the Mastercoin Foundation
Factom is a simple, yet critical technology for leveraging the power of Bitcoin Blockchain.
What is Factom?
The goal of the project is to build a protocol stack, beginning with a proof of existence layer, and ending with a layer providing proof of process. All of which is secured with the Bitcoin block chain, without adding a significant number of transactions to the Bitcoin block chain, nor requiring any changes to the Bitcoin protocol.
As Peter Kirby- President of Factom explains: “Factom is a simple extension of the Bitcoin Blockchain that lets you build faster, cost effective applications with limited bloat”.
With clever use of cryptography Factom will limit the size of the blockchain without losing any of the information it contains.
Factom is essentially a P2P network using a BitTorrent-like protocol, running on a system of federated servers. These servers all audit one another continuously to make sure they’re following Factom’s rules, and all of them are compensated in cryptocurrency for their services.
Once that’s established, anyone with the proper client program on their computer device can get and verify the information they need to run for a decentralized application. You just need to be connected to the Internet, and–as it continues to decentralize–you’ll soon be able to do everything you need without worrying about silly things like “blockchain bloat.”
Factom is using the MSC Platform to issue the digital token associated with the Factom protocol. Upon completing all the layers, Factom tokens will be converted to native coins running on Factom. In fact, they may even be able to help improve the speed and reduce the cost of MSC transaction by running synced MasterCore nodes on the Factom platform.
Here are some advantages to running MasterCore on Factom:
1) The Factom blocks are hashed into the Bitcoin block chain, so they are just as secure as Bitcoin transactions .
2)Reduction Load on the Bitcoin Blockchain, thus unlimited MSC transactions can be performed on Factom for each entry placed in the block chain.
3)Federated servers allow for millisecond processing of MSC transactions that currently take quite a long time on the Bitcoin block chain, thus fast transaction processing
4) Secure transactions – All transactions of MSC will require cryptographic signatures. This means even if the federated servers wanted to misdirect MSC transactions, they could not. They will not have the private keys to do so.
5)Simplified protocols -The flexible entry format means that MSC transactions (as well as many other applications) can clearly add all the data and entries required to support the Master protocol. Factom allows the flexibility to construct transactions exactly as required by the application rather than force them into an awkward encoding scheme.
If you want to know more about this amazing project, please visit
Great things are happening to the Master Protocol
Point of contact for companies and organizations who want to issue a token (Judith Jakubovics) Judith (-at-) Mastercoin.org and on Skype: Judith.Jakubovics