Hash Code Programmers | Blockchain Development Company
Hash Code Programmers Pvt Ltd (HCPPL) is a Blockchain Development Company in India, focusing on distributed ledger technology and smart contracts. Having head offices in the Zurich & India, HCPPL has an expert team of in-house blockchain developers has been building solutions for two years.
An unregulated means by which funds are raised for a new cryptocurrency venture. An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.
Also called an Initial Public Coin Offering (IPCO).
BREAKING DOWN ‘Initial Coin Offering (ICO)’
When a cryptocurrency startup firm wants to raise money through an Initial Coin Offering (ICO), it usually creates a plan on a whitepaper which states what the project is about, what need(s) the project will fulfill upon completion, how much money is needed to undertake the venture, how much of the virtual tokens the pioneers of the project will keep for themselves, what type of money is accepted, and how long the ICO campaign will run for. During the ICO campaign, enthusiasts and supporters of the firm’s initiative buy some of the distributed cryptocoins with fiat or virtual currency. These coins are referred to as tokens and are similar to shares of a company sold to investors in an Initial Public Offering (IPO) transaction. If the money raised does not meet the minimum funds required by the firm, the money is returned to the backers and the ICO is deemed to be unsuccessful. If the funds requirements are met within the specified timeframe, the money raised is used to either initiate the new scheme or to complete it.
Early investors in the operation are usually motivated to buy the cryptocoins in the hope that the plan becomes successful after it launches which could translate to a higher cryptocoin value than what they purchased it for before the project was initiated. An example of a successful ICO project that was profitable to early investors is the smart contracts platform called Ethereum which has Ethers as its coin tokens. In 2014, the Ethereum project was announced and its ICO raised $18 million in Bitcoins or $0.40 per Ether. The project went live in 2015 and in 2016 had an ether value that went up as high as $14 with a market capitalization of over $1 billion.
ICOs are similar to IPOs and crowdfunding. Like IPOs, a stake of the startup or company is sold to raise money for the entity’s operations during an ICO operation. However, while IPOs deal with investors, ICOs deal with supporters that are keen to invest in a new project much like a crowdfunding event. But ICOs differ from crowdfunding in that the backers of the former are motivated by a prospective return in their investments, while the funds raised in the latter campaign are basically donations. For these reasons, ICOs are referred to as crowdsales.
Although there are successful ICO transactions on record and ICOs are poised to be disruptive innovative tools in the digital era, investors are cautioned to be wary as some ICO or crowdsale campaigns are actually fraudulent. Because these fund-raising operatives are not regulated by financial authorities such as the Securities Exchange Commission (SEC), funds that are lost due to fraudulent initiatives may never be recovered.
Tezos is the first and only blockchain implementation operating with decentralized governance started by Arthur Breitman and Kathleen Breitman. The Breitmans also founded Dynamic Ledger Solutions (DLS), a company primarily focused on developing the Tezos technology and owns the Tezos intellectual property. The currency is being launched in an initial coin offering on July 1, 2017.
• Tezos is also known as the self-amending ledger.
• Tezos is a distributed consensus platform with meta-consensus capability. Tezos not only comes to consensus about state, like BTC or ETH. It also comes to consensus about how the protocol and the nodes should adapt and upgrade.
• Tezos has been in active development since summer 2014. Tezos is currently testing and bug fixes to move out of its prototype phase.
Features of TEZOS:
• Its blockchain technology has unique features which the Tezos team claim allows for the establishing of a “digital commonwealth” in which stakeholders themselves decide democratically the direction of the network’s rules and governance.
• Formal Verification: Tezos facilitates formal verification, a technique which mathematically proves the correctness of the code governing transactions and boosts the security of the most sensitive or financially weighted smart contracts.
• Collectively, the Tezos network maintains the decentralized aspect of blockchains while introducing a mechanism to enable collective decision making.7
• Tezos governance decisions are made in the blockchain rather than outside of it and are automatically deployed to the network once consensus is reached. This means that those who hold Tezos tokens have power rather than centralized core developers and miners. Developers are awarded tokens if their proposals are approved within the blockchain’s parameters. Tezos tokens not only power smart contracts in the network, but also allow votes on protocol amendments.