Blockchain to initial coin offering

Discussion in 'The Lounge - Off Topic Chat' started by NavyChief, Sep 18, 2017.

  1. NavyChief

    NavyChief VIP Member

    Sep 26, 2013
    293
    84
    Ledgers are accounts or statements that record financial activities. Digital ledgers work the same way but instead of using money, digital ledgers use data as a way to receive, transfer, and record transactions. The term blockchain is actually just another word for a digital public ledger.
    The blockchain is basically a public, digital ledger (or account book) where transactions are recorded. This record verifies transactions by verifying blocks of data in the digital ledger.
    Before Bitcoin, we needed a trusted third-party to keep a ledger of our transactions with real money. For example, you trust VISA or MasterCard to authorise your credit card transactions and your bank to debit or credit your account correctly.
    These transaction records are then used by a central authority like banks or PayPal to verify and actually confirm the transactions.
    This means that we put our trust in PayPal and banks as middlemen to verify and complete these transactions successfully.
    What is Bitcoin ?

    Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. He proposed Bitcoin, an electronic payment system based entirely on mathematical proof and cryptography techniques.
    The idea was simple, Satoshi wanted to produce a currency that is independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees. Transactions are made with no middle men that means, no banks !
    There are no transaction fees and no need to give your real name.
    Many merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures.

    What is Ethereum ?

    Ethereum is exactly a platform like the Internet.
    However, the Internet has one major weakness that Ethereum does not have.
    The problem is everyone has a Facebook, instagram, … accounts, watches YouTube, and checks Gmail almost daily. What happens if one of those website goes down because of a hack or a bug?
    You cannot get on Facebook and connect with your friends, get back to those urgent e-mails, or watch your favourite videos until the website is fixed. When something goes wrong or shuts down, the whole thing shuts down – that is the underlying problem with centralised systems like the Internet.
    Ethereum, Bitcoin, and cryptocurrencies that work based off the blockchain work like a network of computers. Instead of a single computer or network, the blockchain network is made up of computers from every single user of the blockchain.
    The only way to shut down a blockchain network and cause a system failure is by literally shutting down every computer in the system. If there’s a million computers in a blockchain network, you have to take down 1 million computers to destroy it.
    The answer to that is Ethereum is NOT a replacement to the current Internet infrastructure. Instead, it acts as a complement and arguably an upgrade to today’s Internet protocols.
    Of course, there are some things that work better in a centralised system while others may be better off with a decentralised network.
    Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications. It was invented by the programmer, Vitalik Buterin, as an alternative to Bitcoin.
    The biggest advantage of Ethereum, is the ability to create applications on top of the technology as well as having smart contracts.
    This means that you can create applications on top of Ethereum and use its blockchain as a digital ledger to store information. This technology can then be used to create smart contracts.
    Smart contracts are essentially contracts or terms that are written in code. It help’s you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman. They are lines of codes that self-executes when the terms in the contract are met or not met.

    The most widely-used form of smart contracts are in ICOs or Initial Coin Offerings. The ICO is a fundraising mechanism, is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. They receive bitcoins, Ethereum or another currency in exchange for their token.
    The first cryptocurrency distributed by an ICO was Ripple. In early 2013 Ripple Labs started to develop the Ripple called payment system and created around 100 billion XRP token. The company sold these token to fund the development of the Ripple platform.
    Later in 2013, Mastercoin promised to create a layer on top of Bitcoin to execute smart contracts and tokenize Bitcoin transactions. The developer sold some million Mastercoin token against Bitcoin and received around $1mio.
    In mid-2014 the Ethereum Foundation sold ETH against 0.0005 Bitcoin each. With this, they receive nearly $20mio, which has become one of the largest crowdfunding ever and serves as the capital base for the development of Ethereum.
    Several other cryptocurrencies have been funded with ICO, for example, Lisk, which sold its coins for around $5mio in early 2016.
    Launching your own currency:
    Starting an ICO is not unlike starting a crowdfunding venture.
    Entrepreneurs and startups that want to launch an ICO typically create a company, build their startup to an early stage, announce their plan to launch a token sale, and publish a white paper about what they intend to create, how they intend to do it, and how much money they need to make it happen.
    Then they launch their new cryptocurrency via a service like CoinList or Waves, which promises “your blockchain token in one minute.”
    Then you simply launch your initial coin offering.




    https://medium.com/@ahmedcharef/begi...o-e5ec752a8584
     
  2. FlyingDragon

    FlyingDragon VIP Member

    Nov 4, 2010
    2,753
    1,160
    ICO's are attracting attention from the SEC....Its a novel way to go public as a company or at least that is one way to go about it....
     
  3. ITAWOLF

    ITAWOLF VIP Member

    Dec 9, 2010
    539
    122
    Saw this today
    Good read and definitely something on the horizon
     

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