News Blockhive Introduces a More Efficient Decentralized Crowdfunding Procedure -...

Blockhive Introduces a More Efficient Decentralized Crowdfunding Procedure – Bitcoin Network, News, Charts, Guides & Analysis

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Most of the resistance experienced by the cryptocurrency industry from governments and regulatory agencies have been targeted towards Initial Coin Offerings (ICO) and their modes of operation.

ICO limitations

The non-regulated nature of ICOs is a major concern for governments who feel that their citizens need to be protected from dishonest ventures that extort money from ignorant and unsuspecting victims. Being a more convenient method of fundraising, the authorities are also assumed to see such as a threat to existing systems over which they have control. Hence, most nations are yet to device proper tax methods to employ towards ICOs.

Investors and other ICO participants from their own angle are also faced with a few challenges. Besides being able to determine the viability and success quotient of products unto which they invest, the uncertain outlook of how these token would perform in the exchanges usually unsettles holders. Also, the current configuration of most ICOs leaves their creators without any form of responsibility, therefore they cannot be held accountable for their commitment towards the success of products they create.

A straightforward crowdfunding method

Blockhive Initial Loan Procurement (ILP) is a unique method of decentralized crowdfunding system which removes the various uncertainties and grey areas currently limiting the popular ICO methods. With the ILP, instead of funding tokens and hoping that they will rise in the future, participants actually give a loan to the product creators and get 20% of Blockhive’s annual operational profits.

One of the major reasons why there is still some unclarity within the government circles and financial authorities in most states lies in the appropriate ways to track and tax ICOs. We have seen several projects go through various methods which include the exemption of participants from some countries, while others go through complicated legal processes to achieve proper implementation. These stressful measures are about to become history as the issue of tax will not even come up with ILPs. This is because ILPs are actual debts, hence not subject to tax.

Eliminating the uncertainties of tokens

Tokens are supposed to represent digital assets of value. But the abuse of such technology has seen the creation of numerous tokens that end up with no value at all. Investors get stuck with such tokens and can do nothing about them. Blockhive’s ILP will eliminate such distractions, allowing product creators to focus on product enhancement rather than managing tokens. Hence, investors will not be stuck with valueless properties that will constantly drain their emotions.

A decentralized marketplace

One of the beauties of blockchain technology is the global reach that it offers. The decentralization which it brings enables unrestricted access for participants from every part of the world. This implementation allows anyone to be able to offer loans, through the ILP process towards any project of their interest. Therefore, project initiators are endowed with the decentralized crowdfunding opportunities that are similar to ICOs only this time, better improved and unrestricted.

By implementing Blockhive’s ERC20 token protocol called Hive, creditors are also allowed to enter into a loan agreement with Blockhive to trade their contracts with others. The loan agreement is implemented through smart contracts, which automatically qualifies the creditors to earn interests on an annual basis. This interest has the potential to increase in value, as more projects are incubated.

 

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