...by Daniel Szego
quote
"On a long enough timeline we will all become Satoshi Nakamoto.."
Daniel Szego

Friday, July 6, 2018

Equity crowdfunding on the blockchain


Crowdfunding and ICO-s are two of the most important innovative way of raising money nowadays. Both have however disadvantages: as on crowdfunding there is not really a guarantee that the investor is incentivized in a monetary sense as well. ICO-s mean however something as a stock or a share in a future platform, but unfortunately the whole field is highly unregulated. The next wave of innovative fund rising can come however if existing companies with existing business and cash-flow model start to raise money with the help of the blockchain. For such a process apart from a stable regulatory context, the following elements are required:
- Putting existing business models on the top of the blockchain
- Redesigning business processes with the help of tokens. 
- Integrating consortium and public blockchains. 
- Using triple entry accounting and atomic swaps or escrows to guarantee the consistency of the business models and the different blockchain solutions. 
- issuing secondary tokens on the top of the tokenized business model for further funding.