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Why You Should Use Blockchain When Crowdfunding

The technology of Blockchain has subtly begun to displace numerous industries. This technology has is gaining momentum and is becoming popular across the world today. Fundraising for new businesses is one of the key areas that blockchain helps in the creation of new and exciting opportunities. In other to fully understand the technology of Bitcoin, we need to grasp the concept of blockchain adequately. Let’s take a quick look at the concept of blockchain and how it functions.

BLOCKCHAIN TECHNOLOGY

The concept of blockchain is quite wide and complicated. However, we will endeavor to break it down into smaller chunks that you can easily understand, using a comparison between traditional spreadsheets and Google Sheets.

BLOCKCHAIN TECHNOLOGY

Like ledgers used in a transaction, traditional spreadsheets can only be used at a specific time in a particular place. They may be kept in an application on the web like Google Drive or saved on the computer. However, they do not have the capacity of being in multiple places at the same time. Every modification made must be updated manually and distributed across all the parties involved.

On the other hand, Google Sheets can exist across multiple platforms at the same time. Modifications that are made appear in real-time across all platforms so that every relevant party can see them. However, they exist in the cloud.

Blockchain can be seen as the Google Spreadsheet with updated security systems. Although modifications are made across platforms like https://nakitcoins.com/ in real-time, only those with direct access can see them. After the modification, it is then locked in a block. This implies that no modification can be carried out on it afterward. Blockchain is the technology through which Bitcoin functions.

This highlights the security of blockchain technology as it is bulletproof and completely safe. Hence, many people rely on it for various applications including business funding.

THE POTENTIAL OF THE BITCOIN MODEL TO DISPLACE OTHER INDUSTRIES

The technology of blockchain is accessible and secure all over the world. Various platforms that use blockchain for crowdfunding depend on it for its security and transparency. The continued use of the Bitcoin model for crowdfunding by these platforms helps in strengthening its systems and in making it largely accepted. 

One of the many ways that business is being funded using the Bitcoin model for crowdfunding is known as Initial Coin Offerings (ICOs).

ICOs

Like company stocks, many companies have begun creating their own custom cryptocurrency. ICOs are the offerings on any blockchain platform that comes from new cryptocurrency. There are a lot of similarities in the way other crowdfunding platforms and ICOs work. In most cases, project creators let the public know what they are doing and request financial backing from people that may be interested.

Bitcoin crowdfunding is being facilitated by the current building of infrastructure.

Today, every blockchain technology is still quite new. Bitcoin was launched with the first blockchain technology about a decade ago. This indicates that the market is yet to mature. This means that exciting and creative systems are being built daily to take full advantage of this emerging structure.

We expect to see more innovations with the development of the Bitcoin model for crowdfunding. This means that we can expect to see additional applications for blockchain technology in the future.

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