Factom’s 2nd layer fixed transaction fees and rendered block sizes obsolete; you just didn’t hear about it.
History in the Making
The Factom Protocol is one of the oldest blockchain projects having established itself back in 2014, and successfully launching a public decentralised mainnet in May 2018.
Factom led the way in key technology's such as SegWit, effectively running multiple merkle trees concurrently. That allows almost unlimited data each block to be filtered down into a single hash that’s anchored with the security of both Bitcoin and Ethereum.
Simply, Factom has its own ‘lightning network’ embedded into it’s very heart while others are still scrambling to patch one on.
The big-name blockchains have failed to gain significant usage after a decade of trying.
Why is that?
Well, how can you expect to run a blockchain-enabled product without eventually becoming a victim of your own success?
The higher your usage, the higher you force tx fees until one of two things happen: You go bankrupt, or your customer leaves you.
A study by DocuSign found that transaction fees were simply too high to justify the value added. And that’s before usage of any scale …
This is the primary reason why businesses struggle to progress past proof-of-concept stage; It just doesn’t make sense.
There is a solution of course: the 2nd layer.
The 2nd Layer
While developing layered solutions is widely seen as the path to real-world adoption, Factom has been doing this since the beginning. We’re now onto 3rd and 4th layer apps if you want a glimpse into the future.
That’s only feasible, in a business sense, by Factom’s unique advantage; a two-token system which guarantees businesses a low fixed cost per transaction — 1000 per $1.
Crucially that means 2nd/3rd/4th layer projects running on Factom can be assured of their cost base without being subject to wild variations of transaction fees.
Had they developed on Factom, DocuSign would have found a completely different outcome of their study.
Factom certainly suffered from it’s caution; overly hesitant as an early-mover in a regulatory grey area. With a prudent approach to outreach, we never gained the resources in the bull market to activate armies of investors evangelising the protocol.
Instead Factom relies on a core community of teams working hard to deliver game-changing applications and products.
After 2 years of work on mainnet, these teams are now finishing off large infrastructure platforms on top of Factom, such as Digital ID frameworks or the ‘Factom Asset Token’ protocol — that enables a highly efficient use of Tokenisation, and Smart Contract features.
The Next Wave
Now we’re starting to see a layer of products come to life; a layer that’s focussed on delivering value to end-users, through viable business cases that actually do something.
It’s with these end-user applications that adoption will come on a scale that cannot be ignored or argued against.
The end vision is tough to contain in one thought; it’s an Oracle of the World’s data, in whatever form you can imagine.