Blockchain, Cryptocurrencies and ICOsA new day for start up and small business funding.
What is Blockchain?
Blockchain, the technology behind Bitcoin, is the driving technology behind the next generation of Internet, also referred to as the Decentralized Web, or the Web3. Blockchain provides an architecture that allows us to trust the outputs of the system without trusting any actor within it.
A Blockchain protocol operates on top of the Internet, on a P2P Network of computers that all run the protocol and hold an identical copy of the ledger of transactions, enabling P2P value transactions without a middleman though machine consensus. Blockchain itself a file – a shared and public ledger of transactions that records all transactions from the genesis block (first block) until today.
For more in depth analysis of the blockchain, check out the article below which is also the source of data for this page.
What is Bitcoin?
What is an ICO?
Initial Coin Offering (ICO)
ICOs are types of crowdfunding mechanisms conducted on the blockchain. Originally, the main idea of an ICO was to fund new projects by pre-selling coins/tokens to investors interested in the project. Entrepreneurs present a whitepaper describing the business model and the technical specifications of a project before the ICO. They lay out a timeline for the project and set a target budget where they describe the future funds spending (marketing, R&D, etc.) as well as coin distribution (how many coins are they going to keep for themselves, token supply, etc.). During the crowdfunding campaign, investors purchase tokens with already established cryptocurrencies like Bitcoin and Ethereum.