ICO. What you have always wanted to know but hesitated to ask
If you belong to financial sphere or technological, you must have heard of the term ICO recently. Initial Coin Offering (ICO) is a new mechanism for capital raising. An ICO entails the selling of digital “tokens” to the public, which serves diverse purposes. Thence definition of ICO, cryptocurrencies and blockchain technology are interconnected.
Smart contracts are scripts that run various operations connected to finances, i.e. transfer funds with minimal fee, launch crowdfunding and ICO.
Smart contracts is an opportunity provided by Ethereum (a decentralised platform for applications) which is blockchain in itself. Thus, funds in this network are transferred faster, safer and are never subjected to fraud.
Basic contract or customized solution?
Creating a contract is not a problem, especially when there already exist basic contacts that provide all sorts of functionality. However, the cost of such contracts is very high because the more contractual logic is presupposed, the higher the cost of transactions is. It is a well-known fact that the contract users pay for computing power spent for transactions. That is why it is more profitable to turn to experienced developers. They will make sure there are no odd functions that you’ll have to pay for.
When smart contract is being created, a developer encloses a certain operational logic. It determines how the methods should change the contract status, what events should be monitored, who needs to have a transaction priority and when to make an exception.
Quality assurance. Should you cut corners on it?
A testing phase is an integral element. After all, in case of errors, it is impossible to change the code of the contract deployed in the network. The only one thing you can do is to destroy the contract and to create a new one. So quality assurance should be done in the most detailed way in order to prevent potential errors and optimize the contract logic via test.net or Debugger.
Thus, when ordering a smart contract, ask the company whether QA is compulsory. In case of investing millions of euros in marketing, it could be grievously painful for having made a fatal error in logic.
ICO campaign and your opportunities
However, you can extend the functionality of a basic smart contract through the management of ICO campaigns. Ethereum has its amazing chance of transactions control and an opportunity to transfer funds in other crypto-currencies, such as Bitcoin, Waves, etc.. Moreover, it is possible to issue tokens (coins) within this blockchain eco-system.
Good news is that IT Master has already developed a platform that makes it easier to create Ethereum-based products. This particular Contract Management System allows you to track a contract status, contract processes, for example, the number of issued and remaining tokens, as well as the amount of incoming ethers. It is also possible to set the current token rate, and flexibly manage the ICO process.
An important stage of contract period of validity is a campaign closure. It happens when a claimed amount has been collected within the ICO campaign, the contract due date has come or other terms of a contract have been executed.
In conclusion, it should be noted that the scope of smart contracts usage is not limited to finances. It is expanding and finding new possible applications every day. For example, have you ever dreamt of creating a democratic autonomous organization, exchange goods, hold elections and even vote using any decentralized platform? It is not a dream anymore - it is a reality.
Ask here what else it is possible to develop with smart contracts.