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- The FACT0RN blockchain uses factoring as its PoW instead of traditional methods. - The challenge is to generate semiprimes (numbers with two prime factors) without knowing the factors in advance. - Miners are rewarded for finding strong semiprimes by factoring them. - The PoW problem is to find a nonce, offset, and the smallest prime factor of a semiprime that satisfies specific conditions. - The smallest prime factor must be submitted to measure the work done for PoW. - The blockchain introduces a "deadpool" where users can submit numbers to be factored by paying a fee. - The reward for factoring is exponential in shape but limited to avoid excessive inflation. - The design principles of the blockchain prioritize security, game theory, economics, and heuristics. Overall, the FACT0RN blockchain aims to leverage factoring and incentivize miners and users to contribute to the network while maintaining security and balancing economic factors.