Crowdfunding with Blockchain — Safest Way to Raise Capital

Crowdfunding with blockchain is undoubtedly the safest way to raise capital today. Blockchain is ultimately the most secure technology when it comes to financial transactions. The data security and high-level encryption in a block-like manner make it the most secure tech.

Decentralization is the crux of blockchain. The ability to minimize the undue influence of third-party systems that impose their regulations — while encouraging peer-to-peer (P2P) transactions — is one of the defining characteristics that can make blockchain technology so powerful. 

As a result, crowdfunding blockchain startups are increasingly becoming a meaningful way to give back to the new crop of projects that seek to improve existing blockchain infrastructure.

Know more about UFUND here

Crowdfunding with Blockchain — How Does it Work?

Blockchain technology supports and improves crowdfunding platforms, and UFUND removes the need for third parties.

• It works straightforwardly.

• It just requires you to enroll on the UFUND platform so you can start investing to earn or campaigning to fundraise.

Here are the steps explaining how it works: 

• Signup and verify your email

• Undergo KYC/AML and get approved

• Sign in and fill in the UFUND form

• Start a Campaign to raise working capital

• Connect with many investors

• Fund your purchase orders and sales order by investors

In a blockchain-based system, data is recorded and stored in blocks arranged chronologically and connected by cryptographic proofs.

Does Blockchain Put Any Restrictions on Crowdfunding?

No, blockchain doesn't restrict crowdfunding. Instead it improves the crowdfunding process.

Blockchain technology is one way to improve the customer experience from crowdfunding initiatives significantly. As an ultimate improvement for any project that requires financial transactions, this tech makes its workflow more transparent, simple, and fast.

Blockchain and crowdfunding can be aligned perfectly to change fundraising for many creators.

Because blockchain is decentralized, it does not rely on third-party platforms to generate funds. For starters, there will be no rules to follow. Any project can gain visibility and funding if investors are willing to invest, eliminating fees that make crowdfunding less expensive for creators.

How is Crowdfunding with Blockchain Beneficial for Investors?

Blockchain's application in crowdfunding platforms like UFUND has many benefits: 

1. Token system

While crowdfunding enables tangible products, blockchain usually relies on asset tokenization to provide investors with equity or similar concepts, namely STO (Security Token Offering) or 

ICO ( Security Coin Offering) . In this way, investors can see the success proportional to the company's subsequent success. This means it can potentially exploit the various investment opportunities worldwide.

2. Excess availability

Any company that uses blockchain technology for crowdfunding would get funded. Additionally, any individual who has an internet connection will be able to contribute to such projects. To individuals who invest in crowdfunding using blockchain technology, it is beneficial in a way that "fraud" will be absent in such cases because the investors will receive their ownership or a fraction of the enterprise immediately.All transactions are recorded in the Blockchain and transparent to everyone .

3. Decentralization

The advantage of this model is that startups are not going to utilize the services of any centralized financial institution. They no longer have to abide by any criteria or risk assessment  provided by various funding providers. Hence, any project capable of gaining exposure can get funds and omit the requirement.

Is it Safe to Raise Capital?

Yes, it is safe. For example, blockchain-based crowdfunding is the safest way to raise funds. However, as explained above, blockchain makes encryption-based networks hard to decipher. Therefore, financial transactions are most secured in a blockchain-based network.

Blockchain is a supreme encryption-based tech that protects data in a very sophisticated manner. 

Crowdfunding is just a small application where blockchain can be used to protect its financial transactions.

Try it today on UFUND