【Latest】 Why does Factom (Factom/FCT) price rise!? A thorough explanation of features, mechanism, emission cap, and future prospects.
Factom (Factom／FCT) has seen about a threefold rise in value around mid-November 2018, despite a general drop in the cryptocurrency market, so many investors are watching its future, right?
The domestic exchange where you can buy Factom isCoincheckonly, but do you know about Factom’s features and mechanism?
Also, unlike cryptocurrencies such asBitcoinandRipple, Factom has no issuance cap.
In this article, we thoroughly introduce Factom from basics to the latest information, so please read to the end.
Features of Factom (Factom／FCT)
What sets Factom apart from other cryptocurrencies most is its use case.
Factom was developed as a cryptocurrency platform that records high-value documents such as seals of authentication and registries, or confidential corporate documents, on the blockchain to manage them at low cost, securely, and efficiently.
With such features, how is Factom actually used?
The most notable use is in the housing market.
Factom Harmonyis a project and platform for managing mortgage data.
Generally, when taking out a mortgage, various third parties such as real estate agents and financial institutions are involved, so intermediary margins are substantial.
Therefore, a large cost arises in managing information related to mortgages.
Factom Harmony uses blockchain to manage data related to mortgages among involved parties in one place, enabling efficient document management and operation, while aiming for secure and low-cost operation.
By using Factom Harmony, each stakeholder does not need to manage similar documents within their own company, resulting in significant benefits in terms of cost and information leakage risk.
In addition to the housing market, use in the medical market is also under consideration.
In collaboration with SMARTRAC, and Factom,DLoc Stickerhas been developed; a sticker with a cryptographic key printed on it.
In the medical field, you may know that personal information and medical data must be highly confidential.
On the other hand, it is necessary that such information be accessible from various places.
For example, in an emergency hospital admission due to an accident, it is extremely important to know what treatments the patient has had and what medications they are currently taking as a basis for treatment.
If the patient is unconscious, it is not easy to access this information, right?
DLoc Sticker was developed to address this issue.
Personal information and corresponding medical information are recorded on the blockchain, and the cryptographic key to view that record is written on the DLoc Sticker.
By using a dedicated app to read the cryptographic key inside the sticker, you can immediately view the corresponding personal information and medical data.
For example, if you attach a DLoc Sticker to a keychain or a smartphone, in such emergencies the hospital being treated can access the correct medical information.
How Factom (Factom／FCT) works
Factom manages document data by applying Bitcoin’s blockchain technology.
First, various types of documents are registered in Factom’s own blockchainEntry Block.
Registered document data is categorized and recorded in theDirectory Block.
Thereafter, the categorized document data is recorded on the Bitcoin blockchain.
Bitcoinstores only hashes rather than actual data, so it is not possible to illegally access specific personal or medical information, enabling secure management with confidentiality.
Also, writing a huge amount of data directly to Bitcoin would take a long time, but as described above, data that has already been organized and categorized within Factom can be recorded to the Bitcoin blockchain in bulk, allowing efficient and rapid recording.
Issuance limit of Factom (Factom／FCT)
Factom has no issuance cap, unlike other cryptocurrencies.
What does it mean that there is no cap?
It means that Factom, the issuer, can freely control the number of tokens issued.
In general currencies such as Bitcoin implement an issuance cap to maintain supply and demand balance and prevent inflation from excessive issuance.
If Factom Inc. were to issue a large amount of currency far exceeding demand, its value could drop rapidly.
Also, if Factom Inc. were to go bankrupt, there would be no issuer of the currency.
This would mean that rewards for validating new blocks would disappear.
In other words, there is a risk that the Factom system could stop operating.
On the other hand, if demand surges as with Bitcoin, the price of a single unit could exceed hundreds of thousands of yen.
In such a case, exchanging currencies priced under 10,000 yen can result in many decimal places like 0.0001 Bitcoin, making it hard to read and increasing the risk of transferring an incorrect amount.
To avoid this, if the issuer maintains control over the issuance, it can offer greater flexibility than currencies with fixed caps.
Latest information on Factom (Factom／FCT)
From November 17, 2018, while the overall cryptocurrency market has been falling, Factom has been rising instead.
The three reasons for Factom’s price surge are as follows:
- Merging with a real estate mortgage company Equator
- Hardware wallet Ledger supporting Factom
- Announcement of a technical partnership with Microsoft on the 29th
These three factors likely caused Factom’s price to surge significantly.
Now, let’s explain each in detail.
Merging with real estate mortgage company Equator
Factom’s price rise is due to its integration with Equator’s transaction solution PRO, a real estate mortgage company.
We're excited to announce@EquatorHomes' Mortgage Servicing Blockchain Solution! Check out the press release for more on the Factom Harmony integration and Equator PRO:bit.ly/2B3WkY0#mortgage #blockchain @Altisource
Equator’s parent company is listed on NASDAQ, which is likely a major reason for Factom’s price rise.
