The applications of blockchain and distributed ledger technology are substantial. Factom distinguishes itself by having pursued a protocol design that specifically caters to the needs of enterprise business. The proactive approach Factom has taken in addressing the roadblocks to enterprise use have been central to the design process from the beginning.
Entering data into most blockchains is prohibitively expensive, and costs continue to rise the more that blockchain is used. While a blockchain may initially advertise cheap data entry, their design necessitates a cost increase the more they are utilized. If the cost to enter data into a blockchain is $0.50 / kb one day and $1.00 / kb a week later, how can you effectively budget? At the time of writing, the following is the associated cost of storing data on some of the more well-known blockchain solutions:
- $0.001 / kb
- $3.83 / kb
- $2.86 / kb
- $19.38 / kb
- $3.00 / kb
Yes, Factom is $0.001 per kb compared to $3.83 per kb of data when using Bitcoin. More importantly, the cost of data entry is static when using Factom, in contrast to the constant price fluctuation of other blockchain services. Factom was designed with the understanding that the benefits of blockchain and distributed ledger technology would not be realized without separating the cost of usage from the price of the underlying token. With the forward-thinking design of Factom, enterprise users can be confident in budgeting the cost of leveraging this technology. Factom achieves this pricing protection through its unique two token system which you can read about here and here.
Ease of Use and Regulatory Compliance
Factom was designed with the understanding that most businesses will not want to directly use cryptocurrency. To accommodate this, Factom was designed to permit subscription services that allow enterprise users to pay an application provider for the service without ever owning the underlying asset. Thanks to this design, enterprise users may enjoy all the benefits of blockchain technology without the hassle or liability of obtaining the tokens.
Because Factom is a pure data solution, the data and cryptocurrency are separated within the Protocol, allowing much faster scaling than with most blockchain solutions. The primary scaling methodology that will be employed is called “sharding”, which is a scaling solution that Factom will utilize to accommodate any number of entries thrown its way.
Let Factomize consultants evaluate your needs so you can get started with Factom.