August 4, 2017    4 minute read

Here’s How Blockchain and Crowdfunding Work In Tandem

Pooling Funds    August 4, 2017    4 minute read

Here’s How Blockchain and Crowdfunding Work In Tandem

In the past few years, ideas that previously didn’t have any mainstream business appeal, have in a way revolutionized the startup world. The next step in startup evolution is blockchain in crowdfunding that will help in realizing interesting and path-breaking projects.

More than any sector in the universe, crowdfunders have sunk most money into blockchain technology. Be it due to the alluring reward system or due to their desire to support efforts analogous with their beliefs, people are helping each other monetarily. Blockchain in crowdfunding is creating many opportunities in different stages of startup funding. Due to its decentralized investing feature its role is only going to proliferate in the coming times.

Cryptocurrency Has No Borders

The best thing about cryptocurrencies is that it doesn’t have to do anything with borders and nationalities. Such platforms are truly international. Sending money to your friend in the US is as simple as sending money to your neighbour who lives next door. Cryptocurrencies encapsulate a vision where it is common to find dispersed groups that are located around the world. They use blockchain to raise money from the market, pay their shareholders, and to issue assets, to name a few uses.

Blockchain and Start-ups

Blockchain is helping several companies for funding startups. Earlier, entrepreneurs could either partner with investors or secure loans in order to get fresh capital. Now crowdfunding has opened new avenues for business minds to get funded. CCEDK, a crypto exchange company was initially formed to enable users to convert bitcoin into different virtual currencies. It has now refurbished its platform, directing towards a new era of crowdfunding. Apparently, the company thought that by acting not as an exchange, but as a gateway into the world of the blockchain, it will be able to serve its customers better. In 2015, $34bn were invested in crowdfunded projects, which far exceeded the yearly average of venture capital investments at the time.

Blockchain in Crowdfunding Helps Recruit Talents

While many blockchain companies are finding easy solutions to logistics, pharmaceuticals, and real estate problems, companies like Starbase want to help global companies recruit and pay salary to their employees using a blockchain based platform. Companies using Starbase will create their own crypto tokens and Starbase will use blockchain to make the process secure and transparent. These companies will also be able to crowdfund to raise money from the market that will help them to recruit savvy engineers, which is otherwise difficult.

Decentralising Conglomerates

CCEDK purports to be the de facto flat gateway for blockchain, by which it wants to replace regular currencies such as USD, EUR, INR into virtual ones such as Litecoin and Bitcoin. It supports the OpenLedger platform built for high-speed transactions with all of its capabilities designed around this. Security, acceptance, privacy and signature accounts are some such capabilities. Security because no one can ever freeze, seize, attack, or hack your wealth, and your identity cannot be stolen. Acceptance because you can spend your money using major debit cards instantly. Privacy because only authorized people can see your accounts. Lastly, signature accounts mean that you can share your account with your family members, friends etc. with complete accountability. Moreover, people can also trade crypto assets among each other in real time at ultra-low fee.

Blockchain in Crowdfunding Initiates New Services

Every business needs promotion and marketing but the rules slightly change in the decentralized world of blockchain. Companies can choose to access as much or as little of the services extended through the exchange. Much like Google AdSense, BitTeaser, an advertising network service is an initiative that is built on blockchain technology and charges in cryptocoins. Moreover, OBITS, a digital token blockchain developed on OpenLedger, is a new type of sharing economy which makes it possible to earn a share of the fees generated by the platform OpenLedger. The Bloggers’ Club 500 supplies a steady stream of content on websites and blogs that can serve as a useful resource for new businesses to mine into.

Conclusion

With the kind of value it has got to offer, blockchain technology may soon become the virtual platform upon which traditional bricks-and-mortar financial industry will operate. The digital distributed ledger technology is on its way forward to becoming a major investment theme.

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