Crowdfunding is one of the concepts used by business people to earn some potential investors. Many start-up companies use these options to increase funds for their business. But with the traditional options, the business people do not get the full advantages. Whereas blockchain-based crowdfunding platforms have a lot of advantages over the traditional methods.
If you are in the need of raising your funds, then you need a reliable platform to perform actions. When you choose the centralized crowdfunding platform, you will find there are so many procedures involved. Once the funds are collected from the investors, then the platform chooses to transfer the money to others. So, the entrepreneurs may not get the expected value. Also, the centralized crowdfunding platform charges high fees that are not affordable for everyone to use the services. Because it is a centralized platform there is no guarantee that the company will receive the funds. These are the reasons that one chooses a decentralized platform.
Blockchain-based fundraising platform- The best alternative to traditional method:
When you choose a decentralized crowdfunding platform for cryptocurrencies like Kick.io, then all the transactions are transparent. There is no intermediary as the entrepreneurs and investors can connect directly. Furthermore, the fees of a decentralized fundraising platform are less. The Cardano-based fundraising platforms are preferred by many because they are safe and secure to use. These platforms allow the user to overcome all the challenges in the traditional platforms. Blockchain-based technology means it is a peer-to-peer exchange without the involvement of third parties. Here are few benefits of using a blockchain-based fundraising platform.
Smart contracts:
The cardano smart contracts are programs that run till achieving the goals. They are written in codes for buyers and sellers so that they avoid intermediaries. The code controls the performance so there is no need to worry about security issues. Also, you could track the transactions.
Blockchain tokens:
The cryptocurrency market is getting increasingly popular and there are several cryptocurrencies that are part of crowdfunding. A decentralized platform creates the tokens by raising the funds and distributing them to the users.
Complete decentralization:
The traditional crowdfunding platforms are not transparent and you’re not able to track any of your project statuses. Whereas decentralized crowdfunding platform is completely transparent and they allow one to track the fund transfers. All the process is completely decentralized without any intermediaries. Thus, the advent of blockchain technology and cryptocurrencies offers several options to conduct crowdfunding campaigns.
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