What is ICO?
ICO, short for Initial Coin Offering is one of the remarkable recently-developed trends centred around the Blockchain technology and Cryptocurrencies. The concept of ICO relates much to the IPO concept. In IPO, or Initial Public Offering, the shares of an enterprise, usually a newly established one, are sold to its investors in order to expand the resources available to the company, and are often used for the launch of its future operations. In the similar course, ICO is the process in which the investors invest some form of cryptocurrency, usually Bitcoin or any applicable altcoin into a newly established blockchain based project, take for an example launch of a new cryptocurrency!
Pros and Cons of Initial Coin Offering
At first, ICO may seem an apparently reliable source of revenue for Blockchain startups, yet just like IPO, there exist a few dilemmas associated with it which challenge its benefits. The below section lists some of the advantages and disadvantages of ICO in a flash!
Despite these contradictory facts about Initial Coin Offering, this industry is turning up rapidly with a number of successful ICOs which are resulting out of their proper implementation and the popularity of this new investment trend.
What are Smart Contracts?
Yet another promising implementation of the Blockchain technology is in the field of smart contracts. Smart contracts refer to a revolutionary mode of payment, brought about by Blockchain, which eliminates the instances of financial transactions-based frauds up to a considerable extent. Under smart contacts, a continuous blockchain-based ledger of financial transactions between different cryptocurrency wallets is generated resulting in multiple copies of the same transaction, hence preventing the risk of frauds arising out of financial transactions. Besides financial security, this smart technology also results in securing the digital identities of those associated with the transactions from getting monitored.
Applications of Smart Contracts
With recent advancements, the smart contracts technology now finds applications in a number of industries. Smart contracts offer many exciting benefits over traditional contracts, which have made them such a sought-after trend globally. Some of the industries and sectors having a great potential to get revolutionised with the adoption of smart contracts are:
- Banking Industry
- Insurance Sector
- Gambling Sector
- Logistics Industry
- Copyright Protection
- Supply chain management
This technology is gradually gaining more trust and acceptance even in the most formal classes of sectors/industries such as banking, governance, and administration, which were once strongly opposed to these blockchain based technologies!
Over the recent years, the Blockchain technology has witnessed a widespread acceptance by the different sectors of the global economy. Owing to this fact, it is no surprise that the popularity of Initial Coin Offerings(ICOs) and Smart Contracts has also gained momentum. W3villa Technologies is a software development company having a substantial amount of expertise in the blockchain based technologies, including ICO and Smart contracts development. At W3villa, we believe that these emerging technologies do have the necessary power to transform the way finance and associated industries work. Do contact us for any query related to ICO and Smart contract development services.