Factom Has Filed For A Document Validation Patent

Factom Has Filed For A Document Validation Patent

Authentication of electronic document is based on multiple digital signatures incorporated into a blockchain. Structured data, metadata, and instructions may be hashed to generate the multiple digital signatures for distribution via the blockchain. Any peer receiving the blockchain may then verify an authenticity of an electronic document based on any one or more of the multiple digital signatures incorporated into the blockchain.

-US Patent & Trademark Office

Factom aims to solve real-world problems in the business sector using an immutable record-keeping system. With Factom businesses can store important documents on the blockchain without worry of tampering. As we know with blockchain technology, it is extremely useful for record-keeping and keeping those records secure and unalterable, this is another perfect application of blockchain for real-world issues. Factom is using the Bitcoin network to store it’s data and the software is open-source.

With most blockchain use cases, you need a token in order to create a transaction on the network, this is the method of saving data onto the blockchain. Factoids or FCT’s, are “burnt” into entry credits and these entry credits allow you to secure your data on the blockchain. The only way to secure your data on the blockchain is to use entry credits, and before hand burn your Factoids. These tokens also act as an anti-spam feature, making it so no one can jeopardize the network. This is by far one of the most interesting ways to secure documents and information on blockchain.

For starters, blockchain is extremely safe as we know it for storing data, as it cannot be altered after it is placed on the blockchain. Factom is built on top of a decentralized network, so one person does not control any aspect of the network and is distributed throughout everyone on the network. Very typical of blockchain application. As taken from Factom’s web page for their, “Convert your document management solution into a blockchain based document platform that eliminates lost documents, reduces audit time and prevents costly disputes.”