Bitcoin, the new age currency making rounds around the internet relies upon people, who are part of the network to keep it alive. In other words, the crowd keeps these cryptocurrency protocols alive by contributing processing power to the network (miners) and by executing digital currency transactions.
Apart from being dependent on the crowd for its own survival, bitcoin and its underlying blockchain technology have something more up their sleeves, making them invaluable for the crowdfunding industry. The blockchain technology is a perfect fit for crowdfunding applications. The decentralized nature of the digital currency technology combined with security and immutability makes it so.
The main application of blockchain technology, when it was introduced along with bitcoin by Satoshi Nakamoto was for it to be the distributed ledger that facilitates and records each and every transaction that ever happens on the Bitcoin network. By maintaining a record of all the transactions, the blockchain prevents users from double spending their bitcoins during the confirmation phase. However, the benefits offered by blockchain technology is much beyond its use as a ledger for digital currency transactions.
To list few of the benefits, Blockchain technology offers a secure platform for data storage and management, it offers universal authentication, it builds a trust factor on trust-less networks, it can be used to automate various processes, easy to audit, offers frictionless transaction capability and it offers a certain degree of anonymity. Having such a long list of benefits under its belt, Blockchain technology has grown beyond bitcoin and its use is being explored by virtually every industry.
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 meet the requirements. The burden of investment is distributed across the masses, so no single […]
