Hi
since FACTOM announcement, I have been watching and impressed their picture of election protocol and so on.
on the other side, as a ICO investor, I am little confusing what would be happen to my FACTOM in omniwallet when fed or such gov function utilize FACTOM.
my understanding is those function may purchase "Entry Credits" through FACTOM web site, not Factoids from alt coin markets.
so, technology stand point, we will see their success with happiness, but my FACTOM(Factoids) price in alt coin markets would be steady, I thought.
In short, poloniex or such alt coin markets are dealing Factoids. Commercial base, user can buy Factoids, but most likely, user would buy Entry Credits directly from FACTOM. Demand of FACTOM means demand of Entry Credits.
I am little confusing why they deal Factoids with the expectation of capital gain.
can anybody give me a hint on this?
thanks!
Let's say I know the CEO of a company and he would like to buy Entry Credits directly from me. He gives me money and I transact...
....
Factoids to his Entry-Credit-Address ---> those Factoids are "burned"/out of the system. Every time and regardless where somebody purchases EC's, Factoids will be converted into EC's and out of the system.
Than lowers the total supply and increases the value of all remaining Factoids. On the other side, after Milestone 3, there will be an inflation rate of 10% per year (about 73k FCT's).
The current total supply you can see if you click on a Block:
http://explorer.factom.orgCurrently: 8,752,865 FCT's
Started with: 8,759,968 FCT's
Edit: Here you can see that the use of the system is increasing:
Usage Statistics
https://docs.google.com/spreadsheets/d/1RUZLxxoAfT3C5jIJ144DLYdztYe_sqrKqbTlZuD05-s/edit#gid=445871101thank you very much!!
I think I am getting to catch up but tell me bit more.
what would be your story that the CEO would buy EC directory from Factom website of here ?
https://www.factom.com/entry-credits/.
thanks for your time
No problem!
What is really great about Factom is this: They have found a way to eliminate the need of any Cryptocurrency (including Factoids) for potential customers, which makes Factom a lot more attractive - before all for bigger companies like banks.
Potentially there are two ways to get Entry Credits:
1. A user can buy Factoids on an exchange and convert them into Entry-Credits himself.
2. A user can buy Entry Credits directly and pay with a Credit-Card or another common way, like bank-transaction.
The advantage of buying Entry Credits directly is:
- no regulatory issues
- more practicable/elegant/direct --> no need to make an account on an exchange, buying Bitcoin before to buy Factoids to convert it etc.)
But it doesn't need to be Factom-inc. they buy from. Potentially you could open a Store and offer EC's. Every time somebody buys Entry Credits, you (or your bot-system) would transact Factoids on the Customers EC-Adress and those Factoids would be out of the system. That's always the same, regardless if the user does it himself or Factom-inc. or you or whoever.
The customer doesn't even need to know about Factoids or any Cryptocurrency to use Factom. Factoids are more like a system-currency to pay those who will run the federated servers, which is also a great incentive that they will do their best to promote Factom to increase volume (use) and value.
That economical concept is what initially got my attention because it's nearly perfect or maybe it is perfect - I don't see any weak points. The base idea about how Factom can be used, for how many purposes, is already great. But it's the economical design which is genius in my opinion, because they've found a way to lower all possible barriers and to keep the system flexible and ready to grow into all kinds of potential use cases at the same time.
With other words: Pretty elegant. If they are able to develop it like it's planned I don't know of any reason why Factom should not become a great success. And I personally have no doubt that they will deliver.
