Community post
DataYes + Factom Announce Collaboration
Now it's official and it's big:
DataYes + Factom Announce Collaboration
Immutable Stock Market Data Is Now Available To the World
https://www.factom.com/datayes-factom-announce-collaboration/
What everybody should know: In Factom it will be all about the demand of Entry Credits. Every time Factoids (the system-currency to pay the federated servers) are converted into Entry Credits (access to use the system), Factoids are burned. I don't know of other projects in the Crypto-space that have this kind of objective price-base, because that will make it possible to calculate an equilibrium-price.
One example (quoted from my Post about Factom three weeks ago):
"Let's say 3 Mio per month would be burned because of "Factoid-to-Entry-Credit-Conversion".
The burning rate on one side and the fixed payment of 73k FCT each month for the federated server make it possible to calculate an equilibrium-price (burning rate = new created Factoids). The calculation for the $3 Mio demand per month per 1 FCT would be:
41
With other words: If Factom should be used for 41 - otherwise more Factoids would be burned than new created."
https://steemit.com/factom/@ph03n1xii/why-factom-is-a-buy
Replies (8)
can you provide some key factors about factom? I have no idea what is that, I just own a few hundreds but I don't know what to expect from Factom.
In very short terms Factom is about recording hashes of data in time. A hash is like a unique fingerprint of a file. That doesn't seem big on first sight, but in fact it is. It's about:
...and a lot more. It's about organizing data and it's about big data, also providing data to smart contract-platforms for example. It needs some research to understand what they provide, which is also the reason why Factom is still underestimated in my opinion. A good place start to find out more are their videos on youtube:
https://www.youtube.com/channel/UCZlpFmzDKrSmTObhSPuhdSw/videos
But also on BCT are a lot of good informations and in the Ann you should find all to dig deeper: https://bitcointalk.org/index.php?topic=850070.0
Edit:
The best place to get an overview about the business-side (partnerships and more) is their blog: https://www.factom.com/blog/
How-to-guides for their software, which is all not too userfriendly yet: https://www.factom.com/howto/
To add to ph03n1xii's great explanation, this can be done with nearly any blockchain. However, considering large amounts of entries, Factom is a much more cost-efficient solution. The cost of making an entry is kept at about a tenth of a cent. Entries are made with a non-transferable token called Entry Credits, and Factoids are burned to create Entry Credits. Factoids can freely fluctuate in value while Entry Credits are held at that tenth of a cent. There are only about 8.75 million Factoids. There is no mining involved, Factom is anchored into other blockchains like Bitcoin, essentially piggybacking it's vast security. The protocol fully works, but it's still under development. The supply of factoids will not grow until development is complete.
can u explain what is the meaning of the term "Mio" of $3Mio means?
Millions...
o0hhhhhh i see.. ... thanks you!
how far Factom can go in terms of price?
Anything stated is pure speculation. With that said, consider the value of other blockchain projects, specifically their market caps (multiply token value by token supply). Ethereum has a billion dollar market cap, Steem and Litecoin each have about a 40 million, DOGE is at 20 million. I suggest comparing Factom with these other projects in terms of current usefulness, available supply, future potential, anticipated inflation, and competition. From there you may feel that FCT should have an equivalent market cap to DOGE, therefore the FCT price should be at 25 million divided by 8.75 million Factoids); alternatively you may feel FCT should have an equivalent cap to Steem, then the FCT price should be at 170 million divided by 8.75 million Factoids); or perhaps it's a billion dollar project, in which case the FCT price should be at $114.28. That's up to each investor to judge. Personally, I feel the near term valuation should be in the hundreds of millions.