Introduction to Blockchain and ICO
Digital currency and information technology are growing at a steady pace and blockchain explainer video is a tool for making it successful. Mainly, the process is becoming more and more sophisticated and that is the reason behind the technology becoming useful and safe. Time is passing by and we are meeting new and improved processes in the making. Even though the technologies are somehow different from one another – they are also dependent on each other.
One of them is called the blockchain animation and this technology proved to be quite useful for managing cash. Especially for digital cash management and treasury, Blockchain technology is one of the best. Aside from that, the ICO or Initial Coin Offering is a way to raise funds or money for a company.
Judging from the short descriptions, we can say that there is some relation between the two. However, just stating a few lines cannot define the whole relation that easily. For this reason, we have to understand both ICO and blockchain animation firsthand.
Certainly, it will be a hard shell to crack if we want you to understand the whole process. So, we are dividing the whole content into small segments and different parts to make it easy. First, we are going to find out what Blockchain technology and ICO is on the digital tech world. Right after that, we shall try to discover the relation between the two and other important stuff.
Part 1: What is Blockchain Technology and benefits of the technology?
There is no doubt that blockchains are a hot topic for many people. Considering their popularity, there’s always a lot of inquiries lurking on the web. Among them, the main question is, what is actually the Blockchain technology anyway? Soon after that, there comes another question, how does the technology works, and what good is it for? What sort of problems you can solve using technology, and why should you use it?
Yes, we know that the digital currency world is very sophisticated and complex. So, understanding different technology and its benefits can help you make the currency management easier. That’s why in this part, we are going to discuss all the blockchain animation technology.
What does the name Blockchain implies?
To simply put it, blockchain is mainly a database. Just like the name implies, blockchain is mainly a chain of information around different computer networks. The technique was first introduced in 1991 by a group of researchers. So, blockchain technology is obviously nothing new in the digital currency world. The researchers wanted to timestamp digital documents so that nobody could tamper them. You can say, this is quite similar to a notary process.
Anyway, for the most part – the technique was not used by any people. Let’s just say the technology was not that popular until 2009. In 2009, Satoshi Sakamoto first adapted the blockchain into bitcoin. Right after that, the blockchain became quite popular among people, and still to this day the popularity is rising.
One thing for sure, the blockchain does offer us some interesting properties on its structure. Because, once you put any data or information inside the blockchain, it will be tough for anybody to change or hamper it. So, the technology offers anyone to make a decentralized or distributed transaction network with ease.
Now, why was the technology invented in the first place? Because in the digital world, data or information can be ruined very easily. Not to mention, the complex nature of the digital currency world is another tough thing to handle for anybody. If you can understand how the technology works, the process works like a charm. As it will be tough to break or hamper the block from outside and you can make secured transactions. So, this technology is solely meant for safe cash management functions.
In short, blockchain is just a simple way to move and store data rather than keeping it in just one place. You can distribute the whole information across different data nodes and get a good management method from it. Once you make a transaction, the network will create a new block on the web. For a secured and safe transaction, blockchain technology is one of the best right now.
How does the blockchain technology work for you?
Just knowing about Blockchains is not enough and you should also understand how the technique works. Yes, we said that the process is very easy and secure at the same time. But how does it work can give you a simple idea about the benefits you will get? Earlier we said, the blockchain mainly creates a block of information that you can store and move around the network. The separated but connected information nodes make it easy for you to keep the data safe and secure.
To understand how it works, we need to take a closer look at the block. Mainly, a block contains three parts – hash, data, and hash of the previous block. So, every block contains specific data inside and what type of data you put inside depends on the type of the blockchain. Mainly, a bitcoin blockchain can store transaction details or information inside. This information can include data from the sender, receiver, or just the amount of coins.
After the data, we should talk about the hash for a while. Well, the hash can be compared to your fingerprint. Just like your fingerprint, a hash can identify a specific block and its content. And each block comes with a different structure and is unique just like a fingerprint. Once you create a block, the hash will be calculated, and if you change something inside the block, the hash will change too. In other words, hashes can help you detect any changes made with the blocks. Once a hash is changed, you cannot think the block as the same one you had before.
For the last element, we have the hash from the previous block. Mainly, this part is responsible for making the chain of the blocks. Not every block comes with a hash from the previous block. The reason is that there will always be a block that starts the chain and we call it the “Genesis Block,”
For example, suppose there are four blocks in a blockchain, and you just hampered the third block. For this, the third block hash will not be a valid one and thus you cannot get access to the fourth block. Once a block from the blockchain tampers, all the other blockchains will become invalid.
Anyway, just having hash is not the best way to keep the data secured as computers are getting fast day by day. Because computers can now calculate thousands of hashes within seconds and you can make the blockchain valid again. However, to prevent this, they have come up with something called the “proof of work.”
Mainly, this mechanism can slow own the process of creating new blocks. For bitcoin, it takes almost 10 minutes to calculate the whole proof of work. For this reason, it is hard to tamper the blocks even if you want to. After tampering just one block, you need to calculate the other blocks’ proof of work. So, this is the primary way blockchain provides data security.
There is another way you can ensure the safety of your data via blockchain. Blockchain never uses a central entity to manage the chain. Rather, they use a peer to peer network for distributing data evenly among the network. In this chain, anybody can join anytime they want, and if someone adds any block – others on the network will receive the block as well. Once the others from the chain verify the block, they can add it to their blockchain.
In order to break the nod, you have to take 50% control over the blockchain network. Not to mention, you have to tamper almost all the blocks and calculate their proof of work. You can say, this is almost impossible to complete for even professionals.
Benefits of Blockchain animation
Earlier, we talked about how the blockchain network works. Yes, the blockchain network three different methods to keep your data safe and secure. Not to mention, you can create a peer to peer network and evenly distributed data security. This makes the blockchain a force to be reckoned with.
However, the blockchain network is evolving day by day. Among them, the most popular development is called smart contracts. Mainly, these contracts are small programs that you can store inside the blockchain. With the contract, you can automatically exchange coins based on certain conditions on the chain.
After technology first came into view, a lot of people started to have an interest in it. Soon a lot of people realized that they can store medical documents, notary, and even collect taxes with the technique. So, depending on the data safety measurement, the blockchain is obviously a great way in making data management easier.
Part 2: What is actually an ICO and what sort of benefits you will receive
The word ICO mainly refers to the Initial coin offering on the web. ICO marketing strategy is proving to be fruitful for many people around the globe. If you have blockchain-related projects at your disposal, ICO is a great way to raise your funds. Mainly, you sell different types of cryptocurrency with the process, and this is a secure way to do so.
So, just like blockchain, we need to give you a good understanding of the term. Right after that, you will be able to understand the benefit you will have, and what’s the relationship between blockchain and ICO. So, let’s just start with the basics for now and have a good look at ICO.
What is ICO in cryptocurrency and what does it do?
Just like we said, ICO is mainly a way for you to sell cryptocurrency from blockchain-based projects. A lot of new projects usually sell crypto tokens in exchange for bitcoin and other cryptocurrencies. Most of the time, the fund-raising process is prone to scams and fakes. ICO is more of crowdfunding for people around the crypto world.
Not to mention, the technique is relevant to IPO (Initial Public offering). It works like this as a lot of new companies start to make new coins, apps, or other digital tech stuff. Many interested investors like to get their hands on that token. Mainly, the products they introduce is related to cryptocurrency and other related blockchain space. So, they are just like stocks form the stock exchange market. This means, there are chances for the investors to get ruined or get massive returns.
To participate in the ICO one needs to get a cryptocurrency token first. When the concept first came into being, it was considered a revolution for fundraising. A lot of public company started to raise millions of dollars without facing law violation conducts. Anyway, things are changing and many authorities are keeping a keen eye on the ICO space. So, there are fewer chances of any possible scams or violation of the laws.
The company will create a coin or token and sell just a portion of it to the crowd or public. Among these ICO projects, the white paper marketing tool was quite successful. This marketing tool provides all the necessary information about the project and what it will do. So, the buyer is getting just the information about the project and what type of outcome one will receive from it.
We will talk about the procedure of the ICO in the next segment of your discussion. Make sure you keep a keen eye on the discussion as every detail matters.
How does the ICO video work for a company’s fundraising?
When you can understand how the video ICO works, you will understand whether you should invest or not. Yes, the general question is always there as you need to know whether your hard-earned money will be fruitful or not. As a fundraising process, ICO is very popular but a lot of people just don’t understand the thing at all.
Yes, as the authority is starting to keep a good eye on the subject, you must take necessary precautions before investing. Aside from the benefits of the ICO, we must talk about the basics of the fundraising program first. Yes, we know a lot of companies have gained a lot of cash within an hour from ICO. So, the temptation is there but still one should know about the security measurements firsthand.
Anyway, first look at the term ICo, and understand the fact that this is a new crowd fundraising method for a crypto sector company within the early stage. The initial coin acts more like a digital voucher, and any individual can invest in the currency from an early stage.
So, suppose a company is starting its own coin or blockchain-related projects. For a company at its early stage of the business doesn’t have too much of a budget, of course. So, they need to collect money and ICO is just the perfect way to do so. If they have come up with a new method or new tokens, they introduce them to the public.
There are plenty of people ready to invest in the token, and they try to get a portion of the project. On the other hand, the company will create a white paper and sell it to the investors. The white paper will hold all the relative information regarding the project. For instance, it will provide all the algorithms, math’s, and details about the project. What type of token they have made, what good the token does, how many tokens the founder can keep, and how much money do you need to get the token – is the main information of the white paper.
Investors can purchase the currency using flat cash or digital currencies. At this time, the company will set the amount of money they need for the project. Yes, if they can’t raise the total amount of money they want, the investors will receive their cash back. Yes, the company raises money just to meet their goals in the near future.
Benefits of ICO
Now, we should check out the benefits of the ICO marketing strategy. Just like we said, earlier stage companies start to raise funds for their specific projects and meet their goals. However, as an investor, you must make sure the project goes on smooth and profitable. Otherwise, your hard-earned cash will go to waste as you are investing in a token before it comes into existence.
So, how safe is it for the investor and how is it so profitable? We are going to talk about them right here in this segment of our discussion.
Most startup companies face a lot of problems with some projects. The world of cryptocurrency is quite complex and hard to understand. So, investing becomes quite a hassle for a lot of people. Yes, for the company, it’s important to raise all the necessary funds for the benefit of their blockchain project. So, when the small business entities want to invest, they have to rely on the customers for fundraising.
Yes, the process is quite simple as they are selling just the portion of their voucher. The best thing about ICO is that you can get money without even creating your own cryptocurrency voucher. But that doesn’t actually mean that you are getting the money for free, and you can get away with it. When you cannot raise enough money, you will have to return the money back to the investors.
Yes, we said that the token or cryptocurrency works just like a stock exchange. However, you must know that the token is not like any stock exchange. Because you are not getting a legal guarantee from the company at all. Here you are just making a gamble without any sort of legal guarantee at all.
So, before anyone investing in the new tokens, they must be familiar with the digital currency world. Otherwise, they will just invest without thinking any further at all. For security, you are getting the money back if the company cannot raise enough money for their projects.
When you have received all the important information from them, you will think about the possibility of the tokens.
People usually invest in these tokens because most of the time, they rely on possibilities. Chances are that the token will become very popular and then they can sell the token with ease. Considering the recent year’s stats, we can say that most of these projects are successful, and can earn the investors a good deal of cash.
If you want to invest in an ICO project, you don’t need any cash and can use just about any bitcoin you want. Participating in the ICO projects are not that tough anyway. Many do think that this is a quick way to earn a profit, but you should consider ICO as a long term investment.
Problems with ICO projects you will face
Mainly, the risk, unforeseen opportunities are the main cons of any ICO projects. The method is at the forefront of any blockchain industry and still proving to be profitable. Investors are investing in gaining profits within the long term, and they gained hope after seeing successful projects over the years.
Well, that’s just about it as the whole concept is popular because the previous projects were successful. As the method is quite unregulated, scams and frauds are always lurking around the space. That’s why a lot of people lose their hard-earned cash or cryptocurrency by investing in fraud projects.
So, the method is not very secured alright, and there are plenty of scam artists lurking around the ICO space. If they could keep constant surveillance of the whole process, it would have been a safer bet. However, the blame is always on the investors as they were not careful.
Before investing, one should check out the whitepaper thoroughly and judge the project and its future. A beginner should never try to invest without understanding the ICO space.
Difference between the ICO and IPO
We have talked about ICO previously on our content, and the process is quite easy to understand. In ICO, a specific starting company is looking for early fund support without creating any product. Yes, the product is not there, but they can provide the blueprint of the projects. This process is not an investor centric method at all.
On the other hand, IPO is solely dedicated to investors. The IPO is also another way to raise funds but many government entities keep good observations over the companies raising the fund. IN this case, the ICO is much free than the IPO.
Part 3: Relationship between blockchain and ICO
Understanding the relationship between blockchain and ICO is very crucial. Basically, the blockchain acts as the host of the whole ICO program or project. After coming all this way, we are sure about the basics right now.
The ICO is completely relying on the blockchain for creating a network. Here how the process works as the startup business comes up with a project. On the other hand, investors are there to invest in the project. However, how will they get their whitepaper without having any problem? How will the transaction take place, is another important consideration?
Mainly, the company uses the blockchain network to reach the investors on the space. Earlier, we have discussed the blockchain space system or technology. Blockchain technology uses peers to peer network so that everybody in the network can get the same distribution. So, the whole network is not centralized and you can ensure the safety of your data.
Once you have invested in a specific project, it will take up some time to get the confirmation. Because the startup is creating a hash for your investment and trying to give you the specific hash you have. We have discussed that the hash will hold all the necessary information about your transaction and receiver data. After proof of the work process, your data will be secured. Once you have made a transaction, it will take a little time to receive the tokes (about 3 to 5 days at most). Because, the proof of work is calculating the blocks, and ensuring the peer to peer network is getting all the important data.
For data security and data access, the blockchain network mainly acts as the host of the whole procedure. It’s just like a huge circle of investment and projects in the blockchain network. The investors are investing in the blockchain network and the project holders are introducing their projects.
Finally, the relationship between blockchain and ICO is like father and son. Blockchain creates an important platform ensuring data safety and security as well as proper management of transactions. On the other hand, to successfully raise the funds, ICO relies heavily on the blockchain network.
Part 4: How should you start investing on ICO?
If you are hyped about the ICO investment, we should alert you first. Even to this day, ICO is under development, and you can never say anything about the digital currency world. So, if you want to store your life savings, the traditional way is far better. So, right now, we should talk about the way you can start investing in ICO.
First, you have to choose a reliable startup company
Before starting your investment, choosing the right startup company is a must. You need to make sure the developers are not anonymous at all. Otherwise, you will have to lose your valuable money. Before checking out their project, you must check out the experience they have, and what type of employee they are working with. Just have a good idea about their service and projects.
Understand the whitepaper
Understanding the whitepaper is not that of a big deal. However, people who are new should never bid on any project at all. After spending some time in the cryptocurrency world, you will get a good idea about the whole process and methods. When you read the whitepaper, try to understand the whitepaper perfectly and calculate the possibility of the project’s success.
Register for the ICO if you find it reliable
Now, after reading and other procedures, you must register for the ICO projects. Yes, they will have a website to talk about the project you are trying to invest in. You should follow their goals, support, and working spirit on the website, and join the ICO campaign. We should remind you that, no ICO campaign will tell you to register on the specific website. If you find something that wants you to make a registration, you should avoid the site for now.
You will need bitcoin or ether
You don’t need any plain cash for investing in any ICO project that’s for sure. However, you will need to get bitcoin and ether to make your investment. To buy the tokens, you must have bitcoin or ether and the startup wants the cryptocurrency for their project.
Buy your token and think about storing them
To buy the tokens, you must transfer your crypto from the wallet. After the transaction, you will have to wait for a while to get a confirmation text. The payment method can differ according to the startup company and you can even send the money to their address. Check the company address or their wallets address as much as you can and make your transactions.
After getting your tokens, you must find a secure way to store them. There are a lot of available wallet services in the digital currency world, and you should look for a reliable one.
The world of cryptocurrency is introducing us to new and new technologies. Among all of them, ICO is another great way to earn money if the project goes well. To understand the data security of the ICO projects, one must know about blockchains, and the relationship between the two is very important. We mainly tried to focus on the process a lot and hope that you have gained some confidence in investing your hard-earned money on ICO projects.