Factom overview using the Feynman Technique
This post is one of a series of posts I am writing where I try to apply the Feynman Technique to a number of different crypto token projects. You can find the rest here. None of this should be taken as investment advice. They are just meant to be simple introductions to the projects.
Factom is a system to store any type of data permanently and securely without the need of a third-party. It is able to do this by creating a software program that can convert any kind of data into a way that can be stored on the Bitcoin blockchain.
Because real-world data can be messy and have its own standards and validations, Factom keeps its program flexible. Any custom validations and confirmations that a particular piece of data might need can be done independently before being stored. This allows for all kinds of different data to be stored digitally and securely, like property deeds for example.
Factom also keeps track of your data over time. So even though lots of different types of data may be stored using Factom, it is set up in a way that separates out each type of data so that they can be referenced to at any point in time in the future. This makes it easy to pull out your data to view it when you need.
Once a piece of data has been created, in order to store it using Factom, the person trying to store the data must pay to store it. This is done using the Factom token called a Factoid. The computers that then keep track of and store the data on the Bitcoin blockchain are paid in Factoids for their work.