Become A Leader In ICO Crowdfunding With Ethereum Blockchain PlatformAuthor app marketing, Based Platform for ICO, crowdfunding platform
The digital currency has given a whole new dimension to the economy. Blockchain Technology is a distributed ledger enforced by a diversified network of computers, which decentralizes cryptocurrencies. The Cryptocurrency system allows secured payments online, which are denominated as virtual coins or tokens. The concept of understanding cryptocurrency and cryptographic assets is quite a challenge for the layman. This blog will explore the areas ofEthereum’ss presence in the crowdfunding platform of ICO.
Almost all of us would have been familiar with the concept of venture capital and fundraising events in start-up firms. Start-up ventures will ask for ordinary individuals and ask them to back their projects. In exchange, the backers will get certain benefits from the company after launching their new product or project. Now, crowdfunding has taken a digital turn, and the companies have started issuing their digital tokens that assure utility in future cases.
There’s an underlying difference between ICO and crowdfunding. Let’s explore what it is.
ICO Vs Crowdfunding
ICO stands for Initial Coin Offering. It is funding that combines both crowdfunding and equity crowdfunding with digital currencies. ICO is an event where the tokens hosted by Blockchain are distributed to the backers. In ICO, the individuals can purchase their tokens in exchange for other tokens. In ICO events, the company shares are also purchased. Still, in the forms of digital currencies. Start-up Tech organizations conduct ICO’s to cope with their financial markets.
The backers or the individuals will pledge their digital currencies (mainly Ethereum) to exchange some tokens from the event. Before the start of the ICO, the companies will set their target with minimum funds. If that has not been achieved, the companies will refund the token to the backers. With the contribution of the backers, the company will use digital tokens to develop its new projects.
On the other hand, crowdfunding is similar to ICO. A start-up will announce the day of the crowdfunding along with the documents to state the need for such activity. On the day of crowdfunding, the individuals will contribute their funds to the company. If the target fund is achieved, the funds will be distributed to the backers, and if the funding is reaching a good peak, the investors will receive their share for the new project.
The significant difference between crowdfunding and ICO is the rewards. In ICO, the participants will receive their tokens wherein crowdfunding; the backers will get some rewards. In ICO, the most exchanged and sought-after tokens are Ethereum. Ethereum’s role in ICO is enormous.
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What’s the big deal with Ethereum?
Ethereum is an open-source, public, and blockchain distribution. Ethereum enables the use of smart contracts and decentralized networks, which ensures the safe storage of data, and they can run with complete control, leaving no room for fraud or interference of third parties. These smart contracts can regulate things to take place automatically. The payments are auto-generated, that when the goods are delivered, the payments are made automatically. Ether is the name of the digital currency of Ethereum. Ethereum provides a decentralized virtual machine, the Ethereum virtual machines(EVM)
The first funding of Ethereum in ICO started in the year 2014. The project had a collection of around $18million. Ethereum had a big hit in the year 2015, and that is when the share prices started reaching a hike. The current value is $285 million per ether, and the market capitalization is worth more than $26 million.
As stated above, Ethereum is a smart contract and decentralized. It uses a complex data structure called a Merkle Patricia Tree to store a pile of program states. The verifications and quick modifications are done in a fraction of a second to execute an ICO. Ethereum’s blockchain technology not only contains a transaction ledger but allows to calculate the number of funds raised, verify and confirm transactions, and allows regulates to distribute new tokens upon the completion of the already existing tokens.
A new concept of Ethereum enables the processing of instructions in program codes. God also provides incentives for people to share their CPU power to execute the programs on the Blockchain of Ethereum. The program will get terminated if it runs short of gas. This prevents infinite loops and DOS attacks against ICO. Because of this, ICO is safe in the hands of Ethereum.
Ethereum runs on a GHOST protocol ( Greedy heaviest observed subtree) that allows for faster creation of blocks with ensuring the safety of blockchain security. Through this, the transactions will also get processed quickly. When you deal with a large mass of crowd for selling your tokens, the transactions can be verified and added to the crowd sale in a short duration.
What a Smart Contract based crowdfunding does?
A Smart Contract is a contract option between two or more parties who write their codes in Blockchain. The contract executes itself according to the coded terms and is entirely autonomous, increasing the transparency, speed, and efficiency of the cost-effective transactions.
Crowdfunding usually takes place on an internet platform where the transactions will be online. There are few challenges when the transactions are online like there will be no control in the investments. With the Ethereum blockchain, a decentralized platform, the transactions can be taken into control. At the same time, the contributors also will have control over their investments.
What does Appdupe do?
Are you interested in starting your venture with ICO? You can start it right away with Appdupe. Our Ethereum based blockchain technology will work as a decentralized network that uses Ethereum blockchain on intelligent contracts. Ethereum being built with smart contracts and decentralized applications will help prevent fraudulent activities by taking complete control.
On a concluding note, young budding entrepreneurs can approach Appdupe for developing their crowdfunding platform with an Ethereum blockchain technology. You can develop your own ICO platform for crowdfunding by connecting the Startups and the investors. Through this ICO platform, you can enable many backers to contribute their digital currencies(tokens) to start-ups. Contact us right away to get free quotes!
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