• About
  • Contact Us
Sunday, June 26, 2022
Crypto Currency Financial
  • Home
  • Crypto News
  • CRYPTO CASINOS
    • Cardano Casinos
    • Ethereum Casinos
    • Litecoin Casinos
    • Tron Casinos
  • MARKET UPDATES
    • BTC ANALYSIS
    • ETH ANALYSIS
    • XRP ANALYSIS
  • About Us
  • Contact Us
No Result
View All Result
Crypto Currency Financial
No Result
View All Result
Home Crypto

Blockchain’s Potential to Change Crowdfunding

Max Steven by Max Steven
June 2, 2020
in Crypto
383 25
0
Blockchain’s Potential to Change Crowdfunding
560
SHARES
2.5k
VIEWS
Share on FacebookShare on Twitter

Creating crowdfunding mediums using blockchain technology offers a plethora of solutions to many common problems, from accessibility to transparency, and even expenses. With the inception of blockchain technology and its inclusion into the crowdfunding sphere, many unique types of fundraising have spawned as a result, the biggest of which being Initial Coin Offerings. In addition to Forsage a fully decentralised crowd funding platform that pays 100% member to member.

  1. More Accessible
    When crowdfunding moved from the real world to the digital one it opened the fundraising door to a much larger crowd, both those wishing to seek funds as well as those wishing to provide. However, traditional online crowdfunding still suffers from roadblocks and fees associated with international borders and barriers of entry for casual investors seeking early entry at the ground floor.

Crowdfunding
Public access
Using the blockchain gives the public access to startups that used to only be available to venture capitalists. Although there are crowdfunding opportunities not on the blockchain that allow access to equity, the minimum funding amounts are typically too high for the average consumer to afford.

Shorter lock time
When venture capitalists invest in ICO’s it doesn’t tie their money up for a very long period of time the same way that many early-stage startup equity investments do. Sometimes investments can see a return in as short as nine months; this allows for VCs to invest in more startups over time.

“Traditionally, venture investors can work with a startup for as long as 10 years waiting for an IPO or acquisition of the company to give them a return on their investment. But with ICOs, a venture investor who buys coins ahead of their public sale can usually expect the ICO to happen in as little as nine months, and from there on the VC can cash out, though some ICOs don’t allow such sales for three to six months after the offering.” – Tomio Geron, editor at WSJ

Globally available
Investing can take place from all over the world, since ICO’s accept one type of cryptocurrency or another, and the funding can be sent across borders without heavy fees or legal restrictions.

  1. More Transparent
    Crowdfunding without the use of a third-party mediator, there is no guarantee that the money given to a crowdfunded campaign through traditional methods will be used as intended. There are many cases of crowdfunding gone wrong because the businesses were not transparent enough. They raised funds and spent them on unknown things, or never had a proof of concept to begin with. Where traditional online crowdfunding falls short in transparency, blockchain-based crowdfunding can thrive.

Guaranteed through smart contracts
Blockchain software provides a platform to record and verify transactions, as well as other information, from a variety of different parties without the expense of brokers or other mediators. Smart contracts provide the trust that is lacking in many crowdfunding opportunities, providing guarantees for potential investors without relying on an intermediate company to enforce promises. Certain milestones can be set, and unless the community agrees that the project has progressed far enough to meet these milestones, the funded money will not be released to the startup; this can be automated using smart contracts.This can guarantee accountability to ensure that invested money is being spent wisely and correctly.

In the nonprofit sector, smart contracts are being used to “ensure that funds set aside for cleanup, such as those from Shell, are paid on verification of project completion, rather than contractors just withdrawing funds.” (Marian Conway, the executive director of the NY Community Bank Foundation)

  1. Less Expensive
    Whether investing at the ground floor through an ICO for a fraction of the cost the coin might later be worth or simply trying to support a company in a different country, the blockchain provides the medium for lower fees and entry costs in the crowdfunding world.

Smaller fees
A blockchain based crowdfunding company would provide a decentralized network for both the potential startups and the funders when it comes to the funding model, removing the influence of any specific company and eliminating large fees that are common through current crowdfunding providers.

Max Steven

Max Steven

Max has keen interest in what cryptocurrencies have to offer in regards to NGO’s, governments and the financial system.

Related Posts

8DAO: Asia’s first Social DAO, using social capital to build a Web3 ecosystem

8DAO: Asia’s first Social DAO, using social capital to build a Web3 ecosystem

June 18, 2022
KCC Opens Validator Election, 100% of the KCC Gas Fee Allocated To Active Validators

KCC Opens Validator Election, 100% of the KCC Gas Fee Allocated To Active Validators

June 16, 2022

Coinhub AI quantitative trading leads the new wave of crypto, with user data up over 200% in Q2

June 15, 2022
Award-Winning Projects of the $1,000,000 KCC Unicorn Contest

Award-Winning Projects of the $1,000,000 KCC Unicorn Contest

May 28, 2022
United with the Global Guild to cast the cornerstone of Mars

United with the Global Guild to cast the cornerstone of Mars

May 18, 2022
Coinstore.com Accelerates Globalization Strategy and Launches “Crypto Tour of 50 Countries”

Coinstore.com Accelerates Globalization Strategy and Launches “Crypto Tour of 50 Countries”

May 9, 2022

Trending

Introducing Lords of The Lands – A Futuristic Metaverse Space for NFT Rentals
NFT

Introducing Lords of The Lands – A Futuristic Metaverse Space for NFT Rentals

1 day ago
8DAO: Asia’s first Social DAO, using social capital to build a Web3 ecosystem
Crypto

8DAO: Asia’s first Social DAO, using social capital to build a Web3 ecosystem

1 week ago
KCC Opens Validator Election, 100% of the KCC Gas Fee Allocated To Active Validators
Crypto

KCC Opens Validator Election, 100% of the KCC Gas Fee Allocated To Active Validators

1 week ago
Crypto

Coinhub AI quantitative trading leads the new wave of crypto, with user data up over 200% in Q2

1 week ago
Animoca Brands, Leading Blockchain Games Company, Becomes Lead Liberty Gaming Investor
NFT

Animoca Brands, Leading Blockchain Games Company, Becomes Lead Liberty Gaming Investor

2 weeks ago

Recent Post

  • Introducing Lords of The Lands – A Futuristic Metaverse Space for NFT Rentals
  • 8DAO: Asia’s first Social DAO, using social capital to build a Web3 ecosystem
  • KCC Opens Validator Election, 100% of the KCC Gas Fee Allocated To Active Validators
  • Coinhub AI quantitative trading leads the new wave of crypto, with user data up over 200% in Q2
  • Animoca Brands, Leading Blockchain Games Company, Becomes Lead Liberty Gaming Investor
  • MemeKong Setting The Standard For Meme Coins
  • JPEX is teaming up with the Western Sydney Wanderers to give away 250 exclusively designed NFT “J-ball”.

Categories

  • AI Trading
  • Axia
  • Bitcoin
  • Blockchain
  • Blockchain News
  • Business
  • Crypto
  • Crypto News
  • Cryptocurrency
  • Cryptonews
  • Cryptos
  • Deepcoin
  • Gaming
  • Guest Post
  • ICO
  • Metaverse
  • News
  • NFT
  • Press Release
  • Technology
  • Tezro
  • Token
  • Trading
  • TRADING GUIDES
  • Wallets

Tags

2020 Announces Betting Bitcoin blockchain Brides cannabis Casino Casinos Colorado Content coronavirus Covid19 crypto Cryptocurrency Currency Deal financial foreign Gambling Games Gaming Group Launch Launches live marijuana market Online Partners Partnership Play pot Pragmatic Red reports revenue Simple Slot Slots Solutions Sports Supply unveils William

About

The cryptocurrencyfinancial publishes regular news, analysis and opinion pieces on the latest developments in this fast-moving space. We offer the latest crypto news, expert pricing analysis and insight on the latest ICO's.

Contact Us: [email protected]

  • About
  • Contact Us

Associated with Blockchain Press Media Network

No Result
View All Result
  • Home
  • Blockchain
  • Crypto
  • News
  • Press Release
  • Price Analysis

Associated with Blockchain Press Media Network

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • bitcoinBitcoin(BTC)
    $47,760.000.100% 24H
    BITCOIN
    24H : 0.100%
    Volume : $25,691,746,641.00
    Marketcap : $902,767,395,534.00
  • ethereumEthereum(ETH)
    $3,750.30-0.42% 24H
    ETHEREUM
    24H : -0.42%
    Volume : $15,543,537,817.00
    Marketcap : $446,191,570,291.00
  • binancecoinBinance Coin(BNB)
    $523.71-0.25% 24H
    BINANCE COIN
    24H : -0.25%
    Volume : $1,715,282,504.00
    Marketcap : $88,112,540,019.00
  • tetherTether(USDT)
    $1.0000.050% 24H
    TETHER
    24H : 0.050%
    Volume : $52,703,800,023.00
    Marketcap : $78,519,198,598.00
  • solanaSolana(SOL)
    $175.020.210% 24H
    SOLANA
    24H : 0.210%
    Volume : $1,660,210,957.00
    Marketcap : $54,115,741,275.00