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Blockchain for Crowdfunding
With innovation comes the potential for transformation, and innovations brought about by blockchain technology are no exception to that rule. Around 0.5% of the global population utilizes blockchain technology these days. That is a total of approximately 40 million people.
Due to blockchain being a safe, transparent, and quick technology, it can be utilized to improve various businesses. Also, it is already seeing a lot of use in the development of crowdfunding applications, i.e., within such a domain, it is officially trending. Even Kickstarter, a firm that specializes in this area, has recently revealed a potential shift to decentralized technology.
Issues Plaguing the Sector
A glance must be taken at the existing flaws for one to comprehend how blockchain could help enhance the development of crowdfunding applications. Innovations can aid in addressing life-long issues, but if firms are looking to adopt such innovations, they must first fully comprehend the issues that need resolution.
High Fraud Risks
At times, crowdfunding applications lack the proper security measures, which could result in investors losing their hard-earned funds by aiding startups. Fraudulent activity could include making fake claims regarding milestone achievements or products already released, and in a few instances, could even cause a significant monetary loss. Once a startup obtains its required…
