Hi everyone, this is Lucky Ali, and I hope you are doing well. If you have creative project ideas, then you can raise funds using crowdfunding. It is important for both investors and creators. Crowdfunding is an excellent idea, but platforms that manage crowdfunding can face many issues, such as high fees, no transparency, and scams. But this happens when you choose traditional crowdfunding. Things are different with blockchain crowdfunding. With blockchain, crowdfunding is global, secure, and transparent. This is exactly what crowdfunding needed.
Crowdfunding with blockchain is secure and transparent
As you know, blockchain records are most secure because they can't be altered, or in other words, hacking is not possible here. blockchain transactions are transparent, and every single transaction is permanently recorded in the blockchain's decentralized ledger. Which means here, no middleman is needed for crowdfunding. This is helpful for both backers and creators. For example, if you are a donor to any crowdfunding project, then you can see where your money is used because crowdfunding projects make promises. Crowdfunding with blockchain forces them to follow their promises.
We can consider smart contracts as another major advantage. Smart contracts work smartly; for example, if conditions are fulfilled as decided, smart contracts can automatically release the funds. For example, there is a project that reached the funding goal, the smart contract is gonna active and transfer the funds to the creators and makers, and if there are no such agreements, then it can distribute among the contributors. So you can see everything is automatic and hassle-free, and there is no delay issue that we face in traditional crowdfunding. This can win the trust of the funders, and more funds can be raised easily.
No geographical barriers and tokenization benefits
Also, there are no geographical barriers because blockchain and crypto technology are global, and there are no country restrictions that apply to blockchain; what blockchain knows is the sender and receiver, that's it. In traditional crowdfunding, everything is limited because only the country's people and the people who use local currency can participate, but in blockchain crowdfunding, it flips the game because people from any corner of the world can participate in crowdfunding. This is gonna open lots of opportunities for everyone. This gonna become an international funding with the blockchain technology.
Supporters are the real stakeholders in the tokenization of blockchain technology. That is why this is a win-win model for supporters and the makers. Everyone is happy with this model. We have already seen lots of examples of such crowdfunding projects. Crowdfunding with the blockchain means everything. If you have something to say regarding this information, then please use the comment section and also share this post on social media now. I am ending this post and will meet you in my next blog.
○_________________○___________________○
| 👇 | ||
|---|---|---|
 | Hi I am lucky ali from gujarat, india. I am a crypto enthusiast, blogger, and SEO developer. You can find me on hive, twitter and discord (Lucky Ali#6343). Sharing is caring. Thank you, hive family ♥ |
Posted Using INLEO
In theory it sounds great, but I have participated in various that have been a disaster. Starting with the DAO in ethereum. Besides the security and hacks, their other operating and administration could wreck it. People not delivering, running away with funds, no accountability. Then if it escaletes, would be hard in court, timely and costly.
But one day I do see this working like it has done on blockchain governance.