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What is Crowdsale and How to Launch it Using Blockchain Technology

Reading so much about blockchain technology, you must now heard the terms such as Crowdsale, Cryptocurrency and Ethereum quite a lot of times. The truth is, these terms are all interrelated and when it is applied in business terms, it makes all sense. There are has been a lot of voices raising questions about what exactly is Crowdsale and why is it need such a big word when we talk about blockchain technology. First, we need to understand what exactly is Crowdsales? To understand crowdsales you need to know the concept of Crowdfunding. Every project which is launched using blockchain technology requires funding, when these funds are released in form of cryptocurrency to the general public is known to be Crowdfunding. Now when anyone from the public wants to donate or support some money, the cryptocoin receives funds for a particular project/event in form of tokens. So when these token are issued and sold, these are known as Crowdsales. These tokens are tradeable and the value of each token depends on the demand and supply of that particular token. To have the opportunity of building a blockchain infrastructure in your company/organization. You need to understand every single aspect of it such as Crowdfunding, Crowdsales, type of token and how it can be used. Company that tells you built more the entire blockchain from its roots. You need to find a highly reputed Blockchain Application Development

When to execute Crowdsales? Crowdsale ideally happens prior the official launch of a project as the entire funding for the project depends on the sales figure. It is designed in such a way that developers, marketing officials, budget setters are given an estimate that helps them during the startup of a business. The most interesting part of Crowdsale are the way tokens are used. These tokens are the gate to letting you take part in a project with ease. These tokens act as an access gateway tickets to a project. For instance, if there a software application which requires you and an person to check the workings of the software then you will only have to use tokens for that particular testing.

**Here are 2 tokens you should know that gets traded in crowdsale process:- **

1. User token: Also known as Appcoins is a form of digital currency that access the services offered by a particular distributed network. Unlike in Ethereum platform where you need to build a distributed network in such a way that it can have a secure storage form. Which indicates that the tokens are on a blockchain network which helps to redeemed for any local or any cryptocurrency.

2. Equity Token: These token have one single purpose, to finance the development of the network which do not require to access any service protocol. In equity tokens, the exchange of investment are entitled to certain, as the term suggests “Dividends”. These dividends bring revenue in the form sharing. Equity token usually represent a term called DAO which means Distributed Autonomous Organization. This organization is responsible for issuing tokens and helps in holding the money which is collected in the end of the token sale.

This was posted in Bdaily's Members' News section by Ankit .