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The Factom protocol is seeing certainly one of its first adopters, Factom Inc., probably taking its last steps, as the corporate enters receivership.

Whereas the Factom protocol, itself, was developed and nurtured by way of its infancy by The Factom Basis, this board has lengthy since dissolved.  This dissolution occurred after years of growing the protocol, to a degree the place it was in a position to function by itself, in a decentralized trend.

Sadly, Factom Inc., which makes use of the Factom Protocol, has not fared effectively with the present financial local weather, ensuing within the present state of affairs.

Factom Inc.

Factom Inc. whereas intimately associated to the Factom protocol, doesn’t symbolize the Factom Ecosystem as an entire.  They’re merely one firm, which builds options using the open-source and decentralized protocol.

A few of the options Factom Inc. has constructed embrace,

Mental property surrounding these options, in addition to firm property, will now discover themselves within the palms of major creditor, FastForward.  As such, FastForward will facilitate the upcoming receivership course of.

Will FastForward rebrand Factom Inc.? Will they liquidate property? Will they merely restructure?  Time will inform what this course of entails.

Authority Node Operator (ANO)

As an open-source and decentralized protocol, the Factom blockchain is managed by way of a sequence of Authority Node Operators (ANOs).  These corporations, all of which should meet eligibility necessities and bear trialling, are described as block validators.

At present, there are 27 totally different corporations which maintain this place, with Factom Inc. being certainly one of them.

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The Writing was On the Wall

Information of Factom Inc. coming into into receivership mustn’t come as a whole shock.  On March 19, 2020, Factom Inc. creditor ‘FastForward’ indicated that this may occur.

Of their replace on the time, the corporate had the next to say,

“…at the end of March 2020, without any additional support or funding, Factom Inc. will be forced to enter discussions with creditors about the distribution of its assets.”

For sure, extra funding didn’t materialize, ensuing within the growth mentioned right here in the present day.  On April 2, 2020, FastForward introduced the choice by Factom Inc.

Ed McDermott, Director of FastForward acknowledged,

We’re extraordinarily disillusioned with this information from Factom. In mild of this Dissolution Occasion beneath the SAFE we’re taking swift motion to guard our place as finest we will within the circumstances albeit the power to generate any significant return is unsure. As we undergo the Receivership course of and perceive extra of the occasions that led to this place our place as traders in Factom is expressly reserved.” 

Receivership

Receivership is a course of constructed to permit for collectors to realize management of an organization.  This happens in an effort for them to both impart restructuring efforts, or liquidate property.

The aim of which is to permit for a possibility to convey the corporate again to profitability, and/or reimburse collectors their funds.

On-Going Purposes

Whereas these may be darkish occasions, there do stay a couple of promising functions/implementations of the Factom Protocol, that are anticipated to be unaffected by the receivership proceedings of Factom Inc.  The next are a pair examples of this.

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PegNet

Launched in October of 2019, PegNet is an instance of one of many extra promising, and profitable, functions which make the most of the Factom Protocol.  Additionally it is an instance of one of many functions not related to Factom Inc., which is able to proceed to function unaffected.

Up to now, PegNet is alleged to have already facilitated over $1 billion in transactions.

Factom Asset Token (FAT)

The FAT protocol is one other instance of a undertaking constructed atop the Factom blockchain.  This one, specifically, holds the promise and suppleness to assist digital securities.

We beforehand took a short have a look at how FAT operates, together with its skill to assist non-fungible tokens.

Safety Token Requirements – Factom Asset Token (FAT)

Previous Successes

There’s an unlucky development on this planet of cryptocurrencies and blockchain – an attraction to hole, ‘get rich quick’ schemes.  Go to the highest corporations listed on coinmarketcap.com, and also you’ll see it populated with many corporations which have, to place it bluntly, completed subsequent to nil.

Unable to crack the top-100 cash by marketcap for months now, Factom, shouldn’t be certainly one of these.  Total, the Factom blockchain, and the varied options constructed on prime of if, have skilled fairly a couple of successes and bonafide adoption over time.  Arguably probably the most distinguished, and well-known, instance of that is their proclivity for attaining subsequent authorities grants and pilot packages.  Whereas the protocol lives on, sadly, these examples weren’t sufficient to avoid wasting Factom Inc. from its present state of affairs.

If an organization and the protocol it’s constructed upon, which has obtained this quantity of consideration from respected organisations can undergo, so can any.

In Different Information

Past what has been mentioned right here in the present day, the next articles contact on a number of not too long ago introduced utilizations of the Factom protocol.

Knabu to Make the most of IdentityMind and Factom in Pilot Program

Sphereon Chosen to Combine DAML with Factom Protocol

Jung Min-seo

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