Foundations of Blockchain

Design

Factom creates a fast, cheap, and bloat-free way to develop blockchain-based applications. The main workflow of a Factom architecture involves the following steps:

1. Servers create blocks that will be recorded in Factom's own chain
2. Factom secures an anchor (a hash of the Directory Block) onto the Bitcoin blockchain

Figure 8.5: Factom ecosystem (source: https://www.factom.com)

As shown in Figure 8.5, the Bitcoin blockchain is the last layer in Factom's design, and it stores only the minimal information about the assets. Factom creates anchors to the Bitcoin blockchain by only storing the digest of the actual information on the immutable ...