Negosentro.com | Ways In Which The Blockchain Technology Is Changing The Face Of Crowdfunding | When the concept of blockchain was first introduced in the year 2008, no one would have probably imagined the kind of popularity it would go on to enjoy. The blockchain technology is not something that can be confined to dealing with digital transactions any more. It has spread its roots in almost every sector and emerged as an institution in itself. All the big names in the market like Google and Amazon have their very own blockchain network. Blockchain has thus, become an extremely important affair in the world we inhabit today. Among all the other utilities of the blockchain technology, we shall discuss the ways in which this massive technology is changing the face of crowdfunding.
However, before we delve into the details of crowdfunding and blockchain, we shall touch upon some points that you must know about the blockchain technology.
What Does The Blockchain Technology Entail?
If one were to spill all the beans about blockchain, it would be clear how complicated the entire concept is when put into practical use. However, we shall endeavour to simplify the concept and break it down to its basics. The very first thing that you must understand about blockchain is that it is akin to a ledger, but that of a digital one. Any transaction that takes place using any cryptocurrency goes into the blockchain and stays there permanently etched. There is no way to alter the data that flows within the blockchain network. This is one reason why investors all around the globe feel safe with blockchain and put their unflinching trust in them. Also, it is this factor of security that has led blockchain to penetrate several domains, and funding of various business enterprises happens to be just one among many.
It is now time to look into the ways in which blockchain and the first cryptocurrency to ever have graced the market, Bitcoin, have been contributing massively to crowdfunding.
Bitcoin Crowdfunding Over Traditional Crowdfunding, Anyday:
Traditional forms of crowdfunding can be a cumbersome affair. Less than 78% of all crowdfunding campaigns reach their target goal, and even if they are successful in reaching the target goal, not much fund could be hoped to be raised. This is an impediment that most crowdfunding campaigns face. However, when the blockchain network is brought into the picture, the scenario is quite refreshing, and that is what we shall now investigate. If you still feel the need for more information regarding the same, feel free to browse through www.forex.academy/.
ICOs or Initial Coin Offerings-
To begin with, ICOs or Initial Coin Offerings are quite similar to the way other crowdfunding projects work where the information of the project is posted, and interested people can back these projects up. But the involvement of blockchain in the entire process only makes it more credible and authentic. ICOs are the very own cryptocurrency of a company. And people can buy these ICOs much like they would buy the shares of the company. This makes the platform easy enough to make purchases, sell and trade in crypto equity.
OpenLedger is yet another factor that makes blockchain more useful than any other means of crowdfunding. OpenLedger is akin to a stock market, but one that deals with crypto equity. Organisations that are interested in crowdfunding can release ICOs through these ledgers in an attempt to raise funds. This crypto equity can then be traded on OpenLedger.
Ideas and inspirations that once seemed ludicrous now seem much within our grip due to the introduction of the blockchain technology in the world. There is a vast difference in what the world used to be before the onset of the blockchain technology and after it was conceptualised. Needless to say, the blockchain network has revolutionised the financial market, and it shall continue to do the same in the years to come.