Contributing: what is it, what is its difference from crowdfunding, and what does blockchain have to do with any of it? Bitbon crypto asset as the basis for contributing. Features and benefits.
Have you ever heard about contributing? Probably not. But if your interests lie in the crypto field and include blockchain, crypto currencies, and investments in ICOs, then you might have heard about crowdfunding. Even if you don’t know anything about it, now is the time to become part of the modern digital movement that is rapidly changing the world.
Contributing and Crowdfunding
Today, crowdfunding is a method of project financing using which anyone can raise money to create or develop a business. Crowdfunding gave rise to popularization of ICOs (initial coin offerings). Investors will not necessarily receive a profit. If the profitability conditions are not specified in the public offer or the “white paper” of the project, then the profits will depend exclusively on likely appreciation of crypto coins. When no one purchases a startup’s tokens, when there is no commercial support, crowdfunding can be just a way of raising funds for charity.
Contributing in the Bitbon System is a business participation system using which an investor can basically obtain a share in a project for the purpose of future profits. Information on all executed transactions is publically available in the blockchain. Your participation shares in a certain business are recorded in smart contracts of the Bitbon System realized using the source code of an Ethereum-based blockchain. Smart contracts (public contracts) contain all terms and conditions of contributing and ensure their automatic fulfillment. The Bitbon System provides its users with a list of public contracts — business projects awaiting financing, including a detailed description of each project. The payment unit of the Bitbon System is Bitbon, which is considered as a crypto asset by the creator.
Bitbon transactions include the following information:
- nominal value of the deposit;
- history of transactions;
- user’s identifiers;
- transaction date and time;
- public keys.
Contributing in the Bitbon System: Advantages
While previously, in order to invest in commercial projects, it was necessary to contact a lot of people, study various documents and reports, sign papers at the notary’s, make contributions to the authorized capital via bank institutions, etc., now, thanks to the Bitbon System, you can study and invest in any existing enterprise online.
In this case, the Bitbon System serves as a technological venue where the investor (contributor) purchases Bitbons and, after finding a suitable project, invests in a startup or an existing firm by exchanging Bitbons for Projectbons (alternative to digital securities). For example, if a company decides to offer a project for contributing, it acts as a contractat. The contractat provides all necessary information and documents to a special Bitup-agency and undergoes an audit. Then, the Bitup-agency draws up a business plan, coordinates it with the contract, and prepares a Bitbon public contract. The company undertakes to implement the project to the fullest extent, which, in turn, should allow both the company and its investors to receive profits.
If we look at all this from the global perspective, it becomes obvious that contributing means transition of another area of life, business which is familiar to us, to the digital era, where a large portion of investments will undoubtedly move. Crypto currencies as a form of monetization of electronic systems have already attracted billions of dollars, and contributing is another way to passively earn money or raise additional funds for project implementation.