The Factom Asset Token (FAT) protocol leverages the immutability of Bitcoin’s blockchain with the efficiency and composability of the Factom blockchain. In doing so, businesses receive a secure data tokenization system with broad functionality and the ability to meet a huge variety of use cases.
The FAT concept is the brainchild of Paul Snow and the Factom team. This group of developers entered the market in March 2015 with the goal of leveraging Blockchain tech in data tokenization. Immediately, the project saw success. The firm secured major partnerships with large institutions including a land registry deal with Honduran officials. Also, Factom inked a deal to develop a blockchain system to secure IoT devices with the US Department of Homeland Security.
What is FAT?
FAT is an open-source tokenization protocol designed to run on top of Factom’s proprietary blockchain. FAT tokens feature a high-efficiency design, with an issuance cost of just $0.012. Additionally, transferring these tokens only cost $0.001. These tokens function in data-intensive applications which require the use of advanced smart contracts. These features enable the integration of regulatory requirements as is the case with security tokens.
What is Factom?
Factom is a data verification and token issuance platform that operates in conjunction with existing blockchains such as Bitcoin or Ethereum. The concept focuses on the use of three types of nodes and the use of chain-IDs and directory blocks. Simply put, when information publishes to Factom, a data hash anchors the information to Bitcoin’s blockchain.
A New Strategy
In a recent interview, Factom protocol ANO organization CEO, Julian Fletcher-Taylor explained what makes this platform so special. He explained how Factom developers created a system where data processing and validation divorces from the data itself. This strategy removes future scalability concerns and improves the efficiency of current systems. Notably, the system greatly reduces the cost of arbitrating large amounts of data on the blockchain.
The Factom protocol can show if, and when, any changes have been made to a document in question. If a document shows no edits, then it’s proven to be the original published to the blockchain. Data tokenization is now a prime concern for governments and corporations seeking more security and Factom seeks to position itself accordingly.
In essence, FATs can represent any unique item as a non-fungible token. Non-fungible tokens are not interchangeable. This makes this style of token excellent for use in a wide array of tokenization strategies. For example, FATs may represent a particular piece of property or an agreement. Since the tokens are unique, regulators can assure that a project remains compliant throughout its life cycle.
One of the biggest advantages of the Factom concept is its open source development strategy. The developers chose to utilize a set of open source standards that establish data tokenization implementation directly into the entry chain structure. In this manner more functionality is possible.
Let’s Get FAT
You should expect to see a wave of new projects enter the cryptomarket under the FAT standard over the coming months as the project continues to expand. The pure data protocol used by Factom enables developers to build endless systems that live on top of this flexible blockchain ecosystem. Consequently, the FAT protocol continues to gain momentum in the budding security token sector.