Proof of Existence
With blockchain, you can create entries to prove that data existed in a certain state at a certain time. From that point on, anyone with access to the data can verify it against the blockchain version. Future changes to the data will show up like a sore thumb and can be detected quickly by any Connect-enabled system.
Proof of existence is perfect for systems that track a fleet of vehicles or drones and registers their locations and disposition to the blockchain.
The Factom blockchain creates immutable evidence by publishing timestamped evidence of your data and documents, preventing costly disputes. Evidence is preserved permanently on the Factom blockchain, ready to review whenever you need to prove validity.
Recording the movement of products in supply chain management on the Factom blockchain allows you to record immutable evidence of everything that happens from product origin to final delivery.
The Factom blockchain provides a strong public witness. As entries are agreed upon by the growing network of computers running the protocol, the witness to their proofs becomes irrefutable. The proofs are stored as a hash and signed on the Factom blockchain, then anchored to other public blockchains for a virtually tamper-proof public witness. This adds additional credibility and makes any data you store portable. Case law in the the world’s largest economies has already recognized blockchain as legal proof. This means your data is valid all over the world.
For example, the Factom blockchain can be used as a public witness in areas of the world where public recordkeeping entities don’t exist or are unreliable and can provide assist in dispute resolution.
Blockchain proofs and cryptography are perfect for creating a digital identity. In the same way that a private key can provide safe access to a wallet, a series of private keys can create a robust identity system that makes fraudulent activity much more difficult. Once created, these identities can be attached to people, organizations and even devices in order to create a provable record of who or what is attesting to something. The ability to leverage an identity is directly linked to knowledge of its set of keys.
Digital identity is useful for a product with self-sovereign identities like a credit rating system. Reporters and reportees can use their own self-sovereign identities to indicate when they are entering into agreements and attest to the status of those agreements over time.
When many parties need to collaborate, it helps to have a neutral arbitrator. In the past, this role fell to someone with power over the other parties… a lord or king, and later on, a judge. In cases where that fails, the most powerful party often takes advantage and becomes the judge for others. The result is centralization, and a process only as trustworthy as the group in charge. Blockchain provides you access to a source of truth that is incorruptible…math. With Factom Harmony, any number of parties can safely collaborate without fear. No one group will be able to take advantage of the others.
Decentralization is a key component to systems with multiple shifting parties and constituents. One such example is an election, where a decentralized voting system allows for independent verification.
By combining public-private key cryptography and a public ledger, any number of tokens can be created on the Factom blockchain. The tokens can be created, disbursed into wallets, and transferred, all by creating Factom blockchain entries. Because Factom leverages existing public Factom nodes, there’s no need to worry about recruiting nodes to support your token. Instead, you are able to secure your ledger with the ongoing work of many Factom blockchains.
Factom Harmony is ideal for the creation of Stable Coins that represent a specific quantity of an off-chain asset. For more info, see our Stable Coin Presentation here.