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    WHAT IS CROWDSALE OR CROWDFUNDING IN BLOCKCHAIN & HOW IT WORKS?

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    Crowdsale or Crowdfunding in Blockchain Technology can be directly implemented into the crowdfunding industry segment to automating the most of processes. Bitcoin and Blockchain are commonly used, but Bitcoin was simply the first implementation of blockchain technology. Bitcoin is too much of a blockchain what Google is to use the internet, or apples are to fruit. But in the exploring industry of cryptocurrencies, one of the biggest challenges is understanding not only Bitcoin’s relevance, but blockchain’s significance as well-known.

     What is Crowdfunding?
    Crowdfunding is a process of raising funds for a project or venture from the masses, where people pool in smaller contributions/investments to create a significantly larger investment to rich the requirements. The lack of investment is distributed across the masses. This is so that no single person has to spend more than they can share. This concept has been around for ages now. Also, there are instances where artists, authors, philosophers have crowdfunded their works.
    There are few types of crowdfunding. Such as Donations based, rewards based and equity-based. Those who participate in donation-based crowdfunding campaigns do not expect in return for their contribution. It is not the same with the rest. In reward-based crowdfunding, the contributors expect certain rewards in recognition of their contributions. However, ventures opting for equity-based crowdfunding are expected to give a share of equity to its backers against their contributions. Also, certain crowdfunding campaigns on the platform have predefined goals, which if not met will leave the whole campaign void.

    Crowdsales news:
    Crowdsale is a type of crowdfunding which is done through the issuing of cryptocurrency tokens that are purchased by contributors to finance. The value of these tokens is dependent on the success of the crowd sale project and may become much higher in the future. Cryptocurrency crowdsales are somewhere between the issuing of traditional shares and crowdfunding, being able to gather money from a wide audience and let them have their share if the project succeeds. Projects can build their own cryptocurrency or start a crowd sale with other platforms. For example, Ethereum crowdsales are pretty popular among various startups. Also, the Ethereum platform itself had a crowd sale and raised over 30,000 Bitcoins for future development. Crowdsales are a great tool for investors and traders to speculate on promising projects while providing them with the necessary funds.

    WORKS OF CROWDSALE OR CROWDFUNDING
    Blockchain, is a new way of decentralizing information. The technology is a decentralized computing that has been studied for years, but Bitcoin succeeded in accomplishing that which had failed to do before. Bitcoin, beginning with its Genesis Block, succeeded in creating digital currency. Hard drives can be copied. Anything digital can be copied. Creating a currency represented by lines of code. If code were to be copied, more bitcoin would be created.If Bitcoin should have value, then scarcity would be key.

    By programming is a set of pre-defined crowdfunding conditions on Smart Contracts, the system can be automated to execute the smart contract to solve the issue of certain networks or proof of ownership of a certain percentage of equity based on the amount contributed towards the campaign.

    Crowdsales are the crowdfunding campaigns in the cryptocurrency world, where the digital currency platform sells the pre-mined crypto-tokens for the platform under development in exchange for either bitcoin, ethereum, or some other published digital currency. The funds raised are then used for further development of the platform.
    The crypto tokens bought by the participants of the crowd sale is equivalent to both rewards and equity (depending upon the model followed by the platform).

    Blockchain technology and digital currencies have proven to be capable of meeting the needs of any industry, including the time-tested ones. Crowdfunding is one such segment, into which the technology is capable of blending it, completely.
    Crowdfunding is most commonly used by product companies who need cash to build their product. They might have a concept and presales to be able to afford to buy the molds and to get a factory to begin production.

    5 USES OF CASES FOR BLOCKCHAIN BASED CROWDFUNDING

    1. Decentralized Crowdfunding Platforms
    Traditional crowdfunding platforms like Kickstarter and Indiegogo have raised billions of dollars in recent years, but they often take a considerable recent cut of the profits from themselves. The fee system of both these platforms are as follows:
    Kickstarter charges a 5% listing fee and Stripe credit card processing charges of 3% + $0.20 per transaction.
    Indiegogo charges a 5% listing fee on contributions and Stripe credit card processing charges of 3% + $0.30 per transaction.
    Decentralization takes away the intermediaries and allows backers and creators to directly communicate with each other via smart contracts. Removing intermediaries also leads to less censorship over projects that may be considered by some to be controversial.

    2. Increasing Opportunities for Wealth Creation
    The wealth distribution on this planet is extremely skewed. Here are some stats for you to ponder over:
    More than 3 billion people, that’s nearly half of the world’s population, survive on less than $2.50 a day.
    More than 1.3 billion live on less than $1.25 per day. This condition is known as “extreme poverty.”

    Women in developing nations are 9% less likely than their male counterparts to have a bank account.

    3. Lowering Listing Fees
    Traditional crowdfunding platforms take enormous listing fees from creators for hosting their crowdfunding campaigns. Many decentralized crowdfunding platforms will allow the creators to forego the listing fees altogether. All they need to do is to allow their backers to lock up a generous amount of their investment in the escrow contract. The idea is that if you are confident about your project, then you can host it for free!

    4. Incentivizing Platform Community
    A decentralized crowdfunding platform will also build an environment where its community can be rewarded for performing tasks, aka “bounties.” These bounties could be:
    Content Creation: Create YouTube videos, blog posts, infographic creation, logo/branding design, etc.
    Social Media Promotion: Provide exposure for the creator’s campaigns by sharing links, retweets, posting to Facebook, Instagram, etc.
    Survey Creation: Fill out surveys to help collect market research data
    Localization/Translation: Translate marketing material, product descriptions, or product manuals into additional languages for greater reach.

    5. Ensuring Backer Protection
    In Pledge Camp – a blockchain-based crowdfunding platform, the backers will enter into a smart contract with the creator code. The backer will then contribute their funds, a percentage of which is held over within the contract. These funds will be released to the creator only when they meet certain milestones. These milestones are pre-defined before the funds are raised so that the expectations between creators and backers are clear from the beginning.

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