Crowdfunding in blockchain
What is crowdsale or crowdfunding in blockchain?
For VARENA Financial Services, it is no problem to implement blockchain technology in crowdfunding.
What is crowdsale or crowdfunding in Blockchain and how does it work? What is crowdfunding?
Crowdfunding is a process of raising funds for a project or enterprise of the masses, where people join together in smaller contributions / investments to create a significantly larger investment to meet the requirements. The investment burden is distributed among the masses. This is so that no single person has to spend more than they can save. This concept has been around for ages. There are also cases where artists, authors and philosophers have funded their works through crowdfunding.
There are only a few different types of modern crowdfunding. Donation-based, reward-based and equity-based. Those who participate in donation-based crowdfunding campaigns do not expect anything in return for their contribution. It's not the same with the rest. In reward-based crowdfunding, contributors expect rewards to recognize their contributions.
However, it is expected that companies opting for equity-based crowdfunding will provide their supporters with a share of equity against their contributions.
In addition, certain crowdfunding campaigns on the platform have predefined goals that will invalidate the entire campaign if they are not met.
How does Crowdsale or Crowdfunding work in Blockchain?
The blockchain technology is perfectly able to manage the exchange of values under contract. This feature will be useful when managing crowdfunding campaigns based on rewards and stocks. The whole process of assigning relevant rewards and equity to their contributions can be automated using blockchain-based, intelligent crowdfunding contracts.
By programming a set of pre-defined crowdfunding conditions for smart contracts, the system can be automated to run the smart contract to issue certain rewards or ownership checks for a percentage of equity based on the amount that contributed to the campaign Has.
Crowdsales are crowdfunding campaigns in the world of cryptocurrencies where the digital currency platform sells the prepared crypto-tokens for the platform under development against Bitcoin, Ethereum, or any other established digital currency. The funds raised will then be used for the further development of the platform. The tokens purchased by the Crypto vendors correspond to both rewards and equity (depending on the model the platform follows).
Blockchain technology and digital currencies have been proven to be retrofittable to meet the needs of any industry, including proven ones. Crowdfunding is one such segment in which technology can fully integrate.
VARENA Financial Services has a group of subject matter experts and enthusiasts who evangelize blockchain research and development, use cases and products, and knowledge for the better world.
Our group creates an environment and sensitizes companies, developers and society by training them in the blockchain area. Feel free to contact us.