It’s hard to hear the word “blockchain” without thinking of Bitcoin. But can you name other companies also implementing blockchain in their business operations? Do you think this technology is just relevant in fintech, or are there other use cases also?
The Fundraising Regulator is concerned about the impact of technology on fundraising practices; watching a range of new and innovative online ways to raise funds and exchange information in ways that were once limited to traditional contacts such as telephone, post and face-to-face meetings.
What is Enterprise Blockchain?
Enterprise blockchain is a decentralized database that multiple parties can access. It uses cryptography to provide secure, verifiable transactions between two or more parties. In addition to being a database, an enterprise blockchain allows its users to create “smart contracts” that execute automatically when certain conditions are met.
These smart contracts can be used for anything from securities trading and supply chain management to digital identity management and inventory tracking.
What is Blockchain Fundraising?
Blockchain fundraising is a new way of fundraising where businesses/organizations issue their own fractionalized ownership or financial products to investors through tokenization. This practice allows entrepreneurs to raise capital quickly and in an accessible manner while offering investors a chance to support innovation and opportunities they believe in.
More, accepting cryptocurrency and blockchain-based assets as donations could be a game-changer for some charities. Whether you are looking to raise funds or gain exposure, it pays to consider how your charity can benefit from accepting donations in crypto or NFTs, let alone be in line with the code of fundraising regulators.
The idea behind blockchain fundraising is that companies can bypass traditional financial institutions and raise money directly from their customers without having to pay transaction fees or take on debt by using a cryptocurrency instead of traditional fiat currency. This makes it easier for small businesses to raise venture capital without giving up equity stakes in their company.
What are the Types of Enterprise Blockchain?
Private (Permissioned) Blockchain
A private (permissioned) blockchain allows only authorized users to participate in the network and access data. This type of blockchain is typically used by companies that want to keep information private while still being able to leverage the benefits of blockchain technology.
Hybrid Blockchain
A hybrid blockchain is a combination of both public and private blockchains. Hybrid blockchains allow some users to participate in the network while others can be added as needed based on requirements for specific projects or tasks.
Consortium Blockchain
Consortium blockchains are similar to hybrid blockchains but with one major difference: Consortiums can be made up of multiple organizations that work together on the same project or task using the same shared ledger or platform.
In a Nutshell
In the future, we can expect to see more experimentation with these tech trends as enterprises work to identify what blockchain technology can do for their businesses. Hence, while much of the current hype is focused on cryptocurrencies like Bitcoin and Ethereum, it will be interesting to see how enterprise blockchain solutions such as Ripple, Hyperledger and Corda stack up against these giants in terms of speed, security and scalability.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
