Ico that promise to make a blockchain. What is ICO blockchain - in simple words

New technologies appear in all niches real life. One of the areas that is developing at tremendous speed is business. Everyone wants to earn money more money, therefore, current methods are used.

Issuing their own cryptocurrency is what many entrepreneurs use to increase investor interest.

What is ICO blockchain in simple words? Explaining in a nutshell, this is the release of your own tokens (coins, altcoins), which can be used to pay for certain services or goods.

If the offer is really interesting, then interest in the currency increases, which leads to an increase in the exchange rate and resale. Businessmen stir up interest in their projects, users make money on resales.

What is blockchain?

Anyone who is actively interested in cryptocurrencies has already heard about blockchain many times. This technology is used in all altcoins. Essentially, it is a registry created to store data.

To put it even more simply, it is a database distributed over many computers connected into one large network.

We will not introduce complex terms and delve into technical features, because the article is intended for beginners.

After downloading the client application on the PC, the user is connected to a large network and his system is also used for storing and transmitting data.

Typically, blockchain is used for cryptocurrency transfers. When conducting a transaction, maximum security is ensured.

It is not possible to change or tamper with a database entry. It is stored on hundreds of thousands of computers of other users, which are scattered around the world.

Transfers are processed instantly, the commission is set by the sender, and third party intervention is excluded. Plus, transactions are carried out with complete anonymity.

This is precisely what increases interest in cryptocurrencies, because government authorities have long obliged payment systems ( type Webmoney or QIWI) check clients’ passport details.

Why do we need cryptocurrencies?

Before you work, invest money or waste time, you need to understand everything thoroughly. You can draw as many analogies with cryptocurrencies as you like. The easiest way to explain their purpose is by using bonus coupons as an example.

Imagine that some store sells coupons for 5 rubles. By buying them, you can buy some expensive equipment at a big discount.

Someone will buy coupons and spend them immediately, someone will buy them for resale at a higher price, and some will buy an asset in order to keep it for a long time, waiting for the highest possible rate.

A rough, but still worthy example to explain to beginners what an ICO blockchain is. In the same way, large companies are introducing new tokens, offering to buy something or pay for services with them.

Only their popularity went in a slightly different direction. No one is interested in why exactly certain coins were issued, the main thing is that they can be resold.

How to become a cryptocurrency owner?

The easiest way to become a holder of any coins is to buy them. For this purpose, special ones have been created and altcoins are increasingly appearing on exchangers.

The first step is to create a wallet (although you can store coins in your account on any exchange). When it comes to Bitcoin, the best programs are available at Bitcoin.org.

The interface on exchanges may differ, but the essence is the same. First, you top up your account in dollars or rubles:

Then you need to create an order (application) or take advantage of offers from other users. In this case, you won't have to wait. Please note that the exchanges themselves do not buy or sell anything, they only act as intermediaries between people:

After purchasing coins, you can wait for their rate to rise and resell them. To do this you will need to perform the steps in reverse order. You exchange tokens for fiat money, instead of the “Enter” button, click “Withdraw” and choose a convenient method.

You can transfer it to your wallet for long-term storage, but then you will also have to make transfers from it to the exchange in order to cash out the cryptocurrency.

How is cryptocurrency mined?

There is a whole section on our blog dedicated to cryptocurrencies. We constantly monitor interesting projects, learn about new methods and share them with readers.

If you want to earn crypto money with your own hands or start investing in it without buying currency, try these options:

• viewing sites in the Bitter browser extension;
• distribution of free bitcoins on Swissadspaysfaucet;
• free bonuses, games and tasks on Bitgames;
• investment in cloud mining HashFlare ;
• cloud mining (you can start without investment) Eobot;
• simple, cloud and mobile mining on MinerGate;
• free bonuses every hour on Freebitcoin;
• different types of investments in Bitcoin on Cryptotek.

Users collect Bitcoins and its analogues different ways. The most popular coins appear on thousands of sites, their owners purchase crypto and use it to pay rewards to their users.

Some people produce digital currency themselves using mining. You will definitely get money from these projects; we use them ourselves.

What does ICO blockchain mean?

New business features are constantly appearing, and ICOs are being used more and more often. The abbreviation stands for initial coin offering. It's much simpler than other approaches (including IPO).

ICOs are based on tokens. Their release occurs due to the addition of transactions to the blockchain with a description, in a certain quantity and with unique IDs.

After coins are issued, they are sent in any quantity to any addresses in the blockchain. Simply put, to the wallets of users connected to the network.

As a rule, ICOs do not just sell new coins, they are exchanged for more popular cryptocurrencies. No one controls anything here; most often everything is decentralized.

Due to the fact that there are no regulators, there are big risks. You have to rely only on the reputation of the company. This is why influencers come into play.

There are even TOP people influencing the blockchain in ICO. If it is not possible to collect the required amount to achieve the goals, the funds are returned to altcoin holders.

Cryptocurrency, blockchain, ICO – how are they connected?

We talked about everyone important points, connecting the 3 concepts presented in the subtitle. Blockchain is a database, the basis for digital money.

Cryptocurrency is the very asset that users are chasing to earn extra money. As for ICO, it is a business model implemented by companies to attract investors.

Often there is such a concept as ICO startup. It means the emergence of a new cryptocurrency. Until coins become popular, they are sold at a minimal price. If you make the right investments, you can make a solid profit.

Many people do not know that once the Bitcoin rate was only $1. Now the trend has risen to approximately $5,600. It was enough to buy (or earn) at least $10 a few years ago and transfer it to Bitcoin to now become a millionaire.

The model of attracting business investment through ICO gained enormous popularity in 2017 and today competes with venture capitalists. How can a project release its own cryptocurrency? Anna Mandryuk, an employee of the marketing and sales department of AB-CHAIN, says: advertising network in the Ethereum blockchain, which raised more than $2.5 million in an ICO in March 2018.

Blockchain technology or distributed registry technology is a technology that allows decentralized management and storage of data on any transactions with digital assets.

A digital asset can be anything, “from a movie to a folder on your desktop,” writes Jean-Pierre Buntin, a fintech expert. Cryptocurrency assets are a particular example of a digital asset.

In the case of cryptocurrency assets, transaction data is stored on the blockchain. Data about each new transaction is recorded in a block, which stores the data from the block preceding it, and so on. Thus, a chain of blocks with data is created - hence the name Blockchain technologies. Wherein It is almost impossible to make changes to data already included in the Blockchain, which makes the technology itself reliable and safe. All blocks are simultaneously stored on many computers connected to the blockchain network, that is, data management occurs in a decentralized manner.

Bettina Warburg at TED "How blockchain will radically change the economy"

Blockchain technology was first implemented in the Bitcoin network in 2009. With the creation of Bitcoin, a digital currency or cryptocurrency (since it is protected by encryption), it became possible to exchange an asset as easily as a message. For cryptocurrency exchange, there are special wallets that store the address where the cryptocurrency is located and which is visible to everyone, in other words, the public key. Only the owner of the wallet has access to the cryptocurrency that is in this wallet through the Private Key.

Smart contracts and tokens

It is important to understand that different blockchain networks can implement completely different ideas. The idea of ​​the Bitcoin network is decentralized payments. Some blockchain networks have gone further and implemented the idea of ​​a “robot with a wallet,” opening up the ability to write programs that work with wallets. These smart programs are called smart contracts.

The flagship in implementing the idea of ​​smart contracts is the Ethereum blockchain network, operating since 2014. All Ethereum wallets are managed either by people or autonomously by programs.

The use of smart contracts may vary in practice. In the world of cryptocurrencies, smart contracts have become widespread due to their quality as a new and accessible financial instrument. In the blockchain network, you can create a smart contract for a new cryptocurrency, a token, and sell these tokens at a set price: either in another cryptocurrency or in fiat currency (dollars, rubles, etc.), thus attracting funds for the development of a new project or decentralized application in which the token will be used. This process is called ICO, Initial Coin Offering or initial placement of coins (tokens).

The token differs from regular cryptocurrency like Bitcoin, Ethereum or other altcoins in that created and exists within an existing blockchain, and not within its own blockchain, like Bitcoin and altcoins. Tokens usually fall into the utility category - useful tokens. This means that tokens can serve as the internal currency of the project. Tokens are traded on cryptocurrency exchanges along with other cryptocurrencies.

In 2017, there was a real ICO boom. More than 1,000 projects have launched their own campaign to raise funding through the Blockchain. In total, investments in such projects exceeded $6 billion, which is about 1-1.5% of the increase in the total market capitalization of the crypto market in 2017 (about $600 billion).

Comparison of ICO, IPO and crowdfunding

An ICO is similar to crowdfunding: there are project creators and there are investors, and the two parties interact directly. However, if in crowdfunding investors are usually promised a future product, if money is collected to launch any production or create a comic book, for example, then in ICO investors only receive a token. The token itself can also be used within a future project, that is, it will be possible to buy a service with tokens.

ICOs are also often compared to IPOs, but apart from the copy of the name, there is almost nothing in common between these two models. The issue of company shares on the stock exchange is a completely centralized procedure, which involves many nuances associated with regulators. In addition, a company share is actually the holder's right to a share of the company's profits. Also, in most cases, the holder of a company share has the right to vote at the general meeting of shareholders. The token does not give rights to either a share of profits or participation in voting on the project, but is exclusively a financial instrument.

Risks of ICO

When conducting an ICO, all responsibility falls on the company that issues its cryptocurrency, and the state in most cases does not protect the rights of investors.

The main risk for projects wishing to issue their token is the strong volatility of the cryptocurrency market. A project that has raised funds for an ICO may face the problem of converting this money into fiat: during the event, the cryptocurrency in which the funds were raised may significantly decline in price.

Problems may also arise when declaring money raised through the ICO in the company’s reporting documents. Due to this it is worth paying special attention when choosing a jurisdiction for conducting an ICO. Currently, not in all countries the conditions for regulating cryptocurrencies provide a problem-free solution for projects launching ICOs.

Instructions for conducting an ICO

From the moment you decide to issue your token until the completion of the ICO, it can take up to a year.

Communication with investors, marketing operations and public speaking by the project team will occur at all stages, and the entire process of conducting an ICO from preparation to implementation can be reduced to six points:

1. formulation of the idea, budget and project team
2. writing the main company document: whitepaper
3. platform selection and token development
4. Company registration
5. ICO and PR
6. fulfillment of obligations and entry into exchanges

Formulation of the idea, budget and project team

On initial stage it is necessary to evaluate how suitable the ICO is for the project. In case it is completely new project, at the idea stage, you need to decide what role decentralization and the token will play. The most popular way to raise funds through ICOs is among young technology startups with a global vision.

ICO is suitable for business in any field; it is important to develop a project and token concept that would solve global problems: most often investors come from different parts of the world, the crypto community as a whole is not tied to a specific territory. The token can be anything: a means of payment, a bonus, or even a like. In gaming applications, for example, tokens can be earned as bonuses and used for in-game purchases.

The ICO project team usually consists of founders, developers and managers. Key figures in the ICO team:

• CEO (Chief Executive Officer or General Director)
• CTO (Chief Technology Officer or Lead Developer)
• CFO (Chief Financial Officer or financial director)
• CMO (Chief Marketing Officer or Marketing Director)
• developers and blockchain developers (architecture: front-end and back-end, smart contracts, design, etc.)

In addition, advisors - external consultants - monitor the project together with the team. At the same time, advisors play a role not only in helping the project on the technical side - it is important that the project advisers already have successful experience in working with other ICOs, since this directly affects the level of confidence in the project on the part of investors. It will also be an advantage if the project advisers are specialists from different fields related to the subject of the project.

When estimating the budget for conducting an ICO yourself, you can start from the figures offered by third-party companies. Let such a company take care of the ICO will cost the customer company $50,000 - $500,000 (from 3 to 30 million rubles) depending on the set of services provided (writing a smart contract, creating a website, preparing a whitepaper, etc.). As a rule, this amount does not include (or partially includes) marketing, and marketing is the second budget item after team salaries.

Writing the main company document: whitepaper

The main document of any ICO is its “white paper” or whitepaper. The entire team should be committed to preparing this document, since on the basis of it investors will decide whether to invest in the project or not (and if so, how much).

Basic requirements for whitepaper content:

• describes the vision of the project team, the place the company will occupy in the market, as well as the solution it offers
• roadmap - project roadmap illustrating the timing and stages of project development
• number of issued tokens, their role and distribution among the team, advisors and investors

Platform selection and token development

Today popular blockchain platforms for creating smart contracts are Ethereum, Waves, Nxt, Bitshares, Nem. Ethereum remains the leading platform for developing smart contracts for ICOs; it is this blockchain that has the largest community and, accordingly, the most information in the public domain.

The Ethereum blockchain hosts the popular KICKICO platform, where you can launch an ICO as easily as a regular crowdfunding campaign. On this site it is possible to conduct an ICO on a turnkey basis for 4% of the funds raised as a reward.

Each of the blockchain platforms with the ability to create smart contracts has its own differences in the degree of openness: there are public and private blockchain networks. The creation of smart contracts is also available for people without programming skills: in open access There are smart contract templates in which only a few lines remain to be replaced.

The name of the token may or may not coincide with the name of the project. When choosing a name for a new token, you need to pay attention to ensure that its three-letter abbreviation does not coincide with existing tokens and altcoins. You can check this in the list of tokens on Coin Market Cap.

Company registration

Among the most favorable jurisdictions are:

• Switzerland
• Singapore
• Hong Kong
• Estonia
• United Kingdom
• Gibraltar

These countries actively developing the business environment for cryptocurrency projects. ICOs are also often chosen by classic offshore jurisdictions.

Some countries have completely abandoned ICOs and introduced a ban on cryptocurrency. These countries include Ecuador, Kyrgyzstan, Bolivia, Bangladesh and Nepal. Strict restrictions apply in China, Thailand, Vietnam, and Iceland.

Not in Russia yet legislative framework to regulate cryptocurrencies. On March 20, 2018, the bill “On digital financial assets” was submitted to the State Duma for consideration. The law could be adopted as early as autumn 2018.

Stages of fundraising for ICO

As a rule, ICOs are carried out in several stages:

1. offer
2. private sale of tokens (Private Sale)
3. preliminary sale of tokens (Pre-ICO or Pre-Sale)
4. main token sale (Main Sale)

At the offer stage, information about the planned ICO is posted on the bitcointalk.org forum in the altcoins section. The project team can thus receive feedback from future investors and refine the proposal. During the offer, the time frame for the implementation of the idea is announced, a white paper is published, the required amount for this is established, and the team declares Soft Cap, minimum amount for collection, and Hard Cap, the maximum that the project can collect.

We continue the series of materials devoted to development using blockchain technologies. In this article, a developer from Waves talks about how to conduct an increasingly popular ICO, as well as the experience of raising a node in the Azure cloud.

Series of articles “Immersion in blockchain technology”

1. A series of materials dedicated to Emer technology:
   1.1. .
   1.2. .
   1.3. .

What is an ICO?

Recently, it has become popular to move away from the usual IPO model in favor of conducting an ICO - initial coin offering - an organizationally much simpler process. The technical basis of ICO is tokens. Tokens are issued by adding transactions to the blockchain with their description, quantity and unique ID. Once issued, any number of tokens can be sent to any wallet on the blockchain.

ICO is a company selling its tokens in exchange for more or less stable cryptocurrencies. Since there is no external regulator in the form of the state, one has to rely on reputation. This is where escrow comes into play - reputable people or companies whose wallets are used to store funds until the completion of the ICO. If the ICO is completed, having collected less than the minimum threshold, escrow returns everything back to investors.

Sometimes multi-signature wallets are used. For example, for the Bitcoin network such wallets are described.

I will tell you further about how to conduct an ICO on Waves.

Waves Platform

The Waves cryptocurrency platform was launched in April 2016, ICO investments amounted to 30 thousand bitcoins, and today the platform capitalization is more than $100 million. The Waves blockchain uses a Proof-of-stake algorithm, with a minimum mining balance of 10,000 Waves.

One of the main ways to use Waves is to conduct an ICO. The platform network consists of so-called nodes (node ​​- node), which communicate with each other and provide an API for use by client wallets.

The main software interface of the platform is the Node API, which supports working with various transactions: transfer of funds, issuance of tokens and Waves leasing. The node also provides a decentralized exchange (DEX) API. Most API methods are available from the web client, but they can, of course, be used directly. For example, let’s get a list of the last 20 unconfirmed (waiting to be added to the blockchain) transactions:

We receive data on transactions on DEX from the datafeed service

The Waves community is actively developing its own developments that improve and complement the platform. Here I will talk about datafeed - a program that integrates with a node and aggregates information about transactions concluded through DEX.

Let’s say we need the history of transactions for a certain pair, that is, those orders whose exchange transactions have already entered the blockchain. To do this, we use the /api/trades/(amountAssetId)/(priceAssetId)/(limit) method. As an example, let's query the last 50 trades for the WAVES/BTC pair:

This and other data from the datafeed can be used to track the progress of the ICO: for example, to obtain statistics on cryptocurrencies and transaction sizes when purchasing ICO tokens.

The datafeed project is in beta, so there is no official documentation yet. The current draft with a description of the basic methods is under the spoiler.

datafeed API

Waves Data Feed API (v1.3.2)

REST API server http://marketdata.wavesplatform.com/api/

REST API methods:

GET /symbols - get the list of symbols

GET /markets - get the list of all asset pairs traded, with ticker and matchers info

GET /tickers - get the tickers for all asset pairs traded

GET /ticker/(amountAsset)/(priceAsset) - get the ticker for the specified asset pair

GET /trades/(amountAsset)/(priceAsset)/(limit) - get the last (limit) trades for the specified asset pair. Response includes both unconfirmed and confirmed transactions (there is a confirmed boolean field on each reported tick)

GET /trades/(amountAsset)/(priceAsset)/(from_timestamp)/(to_timestamp) - get all trades (up to a max of 100) between (from_timestamp) and (to_timestamp)

GET /trades/(amountAsset)/(priceAsset)/(address)/(limit) - get the last (limit) trades for the specified (address) and asset pair

GET /candles/(amountAsset)/(priceAsset)/(timeframe)/(limit) - get the last (limit) candles for the specified asset pair and (timeframe) (valid timeframes are 5, 15, 30, 60, 240, 1440 minutes)

GET /candles/(amountAsset)/(priceAsset)/(timeframe)/(from_timestamp)/(to_timestamp) - get all candles between (from_timestamp) and (to_timestamp) with the specified (timeframe)

GET /matchers - get the list of all available matchers

Examples:

Both amountAsset and priceAsset can be Asset IDs or Asset Symbols. They can also be mixed. Symbols are case insensitive.

The method of attracting cryptocurrency financing to startups through ICO placement (Initial Coin Offering, similar to a public offering of shares - IPO or Initial Public Offering) is gaining enormous popularity in the world, the volume of funds raised can become comparable to classic exchange financing.

I admit that further development Business ICO could lead to the third world war. In the rapid development of the ICO business, there are truly comparable risks. A little-known, but nevertheless completely historical fact, is that one of the main economic causes of the Second World War was the American stock market crisis, because it was the economy that was the root cause of most military conflicts, as we know from sociology, conflictology, and the works of V.I. . Lenin and Ayn Rand.

To put it simply, after the First World War, the conditions of reparations drove Germany into difficult economic conditions, then in the 30s, a bubble of extraordinary size inflated in the US stock market. The exchange was full of scammers and many shares were bought on credit. The bubble burst at a certain moment, a crisis occurred, the United States introduced sanctions against Europe, of course sanctions, and Europe introduced reverse sanctions against the United States (sounds incredible!). In the moment, it didn’t work out who was cooler and the economies of the two continents plunged into economic chaos. The latter became a prerequisite for the Nazis coming to power in Germany. Confused by thoughts of a “hungry stomach,” Europeans believed in whatever they wanted.

On another continent, the Great Depression began in the 1930s, which redefined the role of gold and means of payment in the economy. Before the era of mechanization, gold was the ideal equivalent of exchange for labor - difficult to obtain, needed mainly for jewelry, banally beautiful, and people tend to think about beauty only on a full stomach, in the intervals between the successful plunder of their neighbors. That is, gold was a hard-to-get surplus, which turned it into the equivalent of economic power.

After the era of mechanization (closer to the 20th century), the value of gold began to change dramatically; human labor was everywhere replaced by machine labor. Energy began to take first place: coal, oil and other fuels for cars. The process has accelerated these days (Fast forward). Money is no longer backed by gold. Oil became gold. How long? In 2017, it is quite possible that a factory in a decent country employs three people, but produces 15,000 cars a year, as people are replaced by robots. Bitcoin is the equivalent of the computing power of a computer that is excessive for the operator and can reflect economic power. In a sense, this is a return to gold.

Bitcoin has a lot of other advantages - its cross-border nature is based on a fundamentally different trust model, built on trust in mathematics, and not on the reputation of a third party. The main attraction of blockchain projects is the reputation-independent trust system built on mathematics. Blockchain – distributed system for storing data, the blockchain cannot be mathematically falsified; the data reflected in the blockchain does not require certification by any third party, including states.

The traditional system of trust is a system built on the reputation of the one who is trusted, therefore the state has the maximum degree of trust. In essence, if you ask the question why the state itself is trusted, the answer lies in the concept of “force”, in the state’s ability to force citizens to carry out its will, as well as to dictate its terms to other states by force. We trust the state not because it is right, but because it can force us to agree with it in any case. That is, the reputational model of trust is in many ways a “power” model; the guarantor of trust is the military power of the state. Mathematical system trust is built on mathematics, which, as we know, is an exact science and in this system, exactly the opposite, the truth is always the same.

The reputation model also contains an unnecessary cost – the cost of the reputation itself. By and large, this is the cost of “power” that provides a level of trust. It is the cost of reputation that is the price barrier that does not allow expanding the circle of participants in the investment market beyond the existing one. For example, a bank with a state license and state guarantees has the greatest reputation. But in a modern bank, 80% of the staff is compliance, that is, in essence, the “force” that ensures its reputation. That is why a system of relationships built in this way does not allow attracting funds to small and medium-sized businesses - this logically and financially contradicts the concept itself. The higher the reputation, the more expensive it is. An audit from PwC is expensive.

The basis of the economy is the product and its value. In any investment process, there are liquidity indicators, when they decrease to a certain level, when investments in an illiquid product reach a certain level from investments in a liquid one, collapse inevitably occurs.

A certain prototype of a possible crisis of the Bitcoin model already occurred during the famous dot-com crisis in the 2000s. Its main reason is that investments were attracted for the supposedly new economy, in which the word “Internet” actually replaced the real product. The main value of the Internet from an economic point of view is the reduction in the cost of the product due to savings on transport and communications. Therefore, those companies survived and developed where the Internet component was a real cost-saving factor, for example, Amazon or Ebay.

The process that is currently taking place in ICOs is close to the history of dot-coms, since funds are raised essentially in the word “blockchain” - without real use blockchain essence in the product, the main goal is not fulfilled new technology in any product - savings.

How to predict the Bitcoin crisis and future global drama? Famous investor Warren Buffett popularized the relationship between stock market capitalization and GDP. You can compare the economic indicators of the current time and the period preceding the First World War - US GDP and stock market capitalization (SMC) in the US, with the capitalization of the technology market of NASDAQ companies: in 1929 - US GDP was $103 billion, stock market capitalization - $89 billion (or 86 % of GDP), and in 2016 - GDP is already $18.56 trillion, stock market capitalization is $23.8 trillion (or 128% of GDP), and NASDAQ capitalization is $6.8 trillion

The US stock market capitalization exceeds its GDP by almost 30%. The last mega-crisis broke out only when these indicators came closer to each other; during the dot-com crisis, the ratio of capitalization to GDP was already 150%, but the dot-com crisis stopped only with the destruction of the twin towers and the introduction of the famous Patriot Act. Now the capitalization of the high-tech market is 28% of the capitalization of the entire stock market in the United States, and 36% of the US GDP, in other words, it was the rapid development of the high-tech market after the dot-coms that gave a very long delay in waiting for the liquidity of products and its real assessment. It is not at all infinite.

If we compare bitcoins with fundamental economic indicators, then the total value of 16 million bitcoins (btc) in circulation at an exchange rate of $1350 (at the time of writing this article) is $21.76 billion, which is less than 0.1% of the stock market capitalization in the United States or 0.32% from NASDAQ. Thus, in order for Bitcoin’s capitalization to compare, for example, with NASDAQ in the future, the rate must be approximately 300 times higher, i.e. $405,000 per Bitcoin.

According to forecasts from April 2017 by the first investor in Snapchat, billionaire Jeremy Liu and co-founder of the largest technology company Blockchain Peter Smith, famous entrepreneurs from Silicon Valley, to whom politicians Barack Obama and David Cameron publicly listened, the value of Bitcoin will exceed $500,000 by 2030 and will be approximately $8.1 trillion (or 126% of NASDAQ capitalization for 2017). In other words, the ratio of capitalization to GDP, if Bitcoin is capitalized mainly in the USA, can be about 200%. Perhaps even the capitalization of Bitcoin will organically replace the capitalization of NASDAQ itself.

Currently, the Bitcoin economy exists de facto in a parallel reality. All or almost all projects that received funding are in the pre-seed stage. In fact, this process is not yet involved in the real economy. Therefore, contrary to the opinion of other experts, I do not consider the introduction of Bitcoin as a legal means of payment in Delaware, Japan or Switzerland to be a turning point. The turning point is the development model of ICO business, that is, essentially a model of penetration into the real economy, the moment when funds will be invested through bitcoins into actually operating business enterprises, for example Facebook.

It is at this stage that the fork appears possible ways development - will there already be a logical flaw in the capitalization model of the real economy? Then the cost of the product will actually increase due to the use of new technology in an illogical way, and not decrease; instead of saving on trust, on the contrary, you will have to pay three times more to auditors for auditing the blockchain and support for taxes a threefold increase in the number of government parasites who will control the circulation of bitcoins.

Moreover, based on the forecast of Jeremy Liu, (taking into account the growth rate of the exchange rate by 2030), in general, the entire technological investment sector will already be capitalized with Bitcoin. If Google and Facebook, capitalized with bitcoins, go bankrupt, probably nothing terrible will happen in a global sense, as was the case with dotcomps. By 2030, it's very likely we'll all be driving Teslas running Linux. Google maps, and if Facebook and Google go bankrupt in 2030, because a logical mistake was made in the very mechanism of investment in the digital economy at the stage of ICO development, then the consequences of the inevitable collapse of the bubble will be comparable to the Great Depression in the 30s, which in in turn could cause a military conflict of comparable scale.

How to become a pioneer in this industry? They will be those entrepreneurs who will be the first to be able to transfer existing enterprises completely to the blockchain, taking into account the real value of the technology; this will become a new true digital economy.

In my opinion, a real ICO of a blockchain project without creating a bubble effect is possible taking into account the following factors:

1. All 100% of the company's shares must be on the blockchain. At the same time, only a part of them can be withdrawn to ICO. In this case, it seems very smart to transfer the real voting power to such shares. Holders of such share tokens will have real shareholder power. IN currently whole line jurisdictions leads active work in this direction - this is primarily the Zug Valley in Switzerland, where a similar project has already been successfully implemented within the framework of the ICO Lykke, these are the experiences of Nasdaq in Estonia, this is the state of Delaware in the USA (where powerful changes are expected in August 2017), these are the Marshall Islands, the islands Maine, African Rwanda, etc.
2. Enterprise accounting should be built on the blockchain. In this case, the growth and decline of the enterprise’s business performance will be independent of the external audit. In this case, it will be redundant and create redundant and unnecessary cost.
3. The product must achieve real savings from use new system trust, this is the only way he will be more competitive. By the way, I couldn’t find any projects that actually met this criterion, except for Bitcoin itself.

In general, I am absolutely convinced that the development of blockchain investing has a future, but it should not be built on a reputation model, since it directly contradicts the very logical concept of a system built on a fundamentally different mathematical approach to the issue of trust.