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RE: FACTOM – FCT – To Understand The Protocol
It is a brilliant protocol and cool idea.
However, I don't like the price at the moment. At current price levels 1.2 billion entry credits need to be spent to reach an equilibrium with FCT creation. This is several thousand times higher than the current usage.
I also am negative on Factom Inc. making their own profits. So we have to rely on the corporation to maintain a good relationship with the current token.
Then a technical point I don't understand (so not holding it against my valuation): Why do you need the federated servers? After you hash your document, don't you have all the evidence you need that the document existed at some point in time? You can upload the hash anywhere, right?
Hi mate,
For the price, agreed. But don't neglect the speculative part. Most tokens have crazy valuation with current no usecase. Factom is in production already.
The federated servers are here to process the blocks and keep the hash in the Factom Blockchain. They decided to have a limited number of dedicated servers for the simple reason that if Factom is successful, the average joe won't have the material to hold that much data. "After you hash your document..." After you hashed your document, you still need a decentralized system to hold your hash. To make it short, the federated servers both process the blocks and hold the data in a decentralized ledger.