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Decentralized crowdfunding, often referred to
as Initial Coin Offerings (ICOs) or token sales, allows businesses to raise
capital by issuing digital tokens or coins to investors. These tokens represent
ownership or usage rights within the project's ecosystem and can be traded on
decentralized exchanges. Unlike traditional crowdfunding platforms, which are
centralized and may impose restrictions on who can participate, decentralized
crowdfunding platforms like DAISY
Global open up investment opportunities to a global audience. Investors
from anywhere in the world can contribute to projects they believe in,
democratizing access to capital and fostering a more inclusive financial
system.
Moreover, decentralized crowdfunding offers
greater transparency and security compared to traditional fundraising methods.
Transactions on the blockchain are immutable and publicly verifiable, reducing
the risk of fraud and manipulation. Smart contracts, self-executing contracts
with the terms of the agreement directly written into code, automate the
crowdfunding process, ensuring that funds are released to the project creator
only when predefined conditions are met. This trustless and decentralized
nature of crowdfunding instills confidence among investors, attracting a
broader range of participants and increasing the likelihood of project success.
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