First Distributed CrowdFunding Network Built On Bitcoin
Swarm.co allows people fund start-ups they like building upon Bitcoin technologies. Entrepreneurs can raise money faster and project founders are exposed to more risk/reward. Swarm recently received full funding via Bitcoin. The following video explains “real crowdfunding” and the Swarm concept.
Defining The Swarm
Swarm is built upon three main components:
1) CryptoEquity – With CryptoEquity you can create your own coin, give the coin voting rights, and launch your own fundraiser.
2) Project Screening – Reputation ranking system, where anyone can endorse a project and everyone can see the results of previous endorsers. Funds can be unlocked by the project backers as the project creators meet goals.
3) SWARM Coin – Early access to projects coming from the Swarm network, exclusive event invites and information, and you get a portion of coins launched thorough the Swarm network
In effect, anybody will now be able to create their IPO. You can create a coin, and the define attributes of the coin. Projects such as Swarm will likely make crypto-currencies much more popular in the future.
CryptoEquity has become a popular topic in the crypto-currency world with groups such as BitSharesX defining what cryptographic equity will mean. The concept is simple in theory; you own an equity stake of a company or physical asset, and you prove your equity ownership through a cryptographic coin. Public acceptance of cryptoequity may take time, as it unclear how laws and the court system will deal with cryptographic ownership rights.
The CryptoEquity offered by Swarm is interesting as it allows customized coins by choosing the number coins to create, company reserves, public available coins, and locked down coins.
From a technical standpoint it remains unclear how the coins are dealing with underlying the Bitcoin blockchain or if it is just relying on technologies from Bitcoin. What will happen in the case where there is a mis-allocation of coins, stolen coins, or data integrity breach? Swarm will need to ensure security is top-notch, as hackers are known to target crypto-currencies.
Swarming For Fun
The Swarm project group also likes to have fun as they are involved in Bitcoin comics. BitcoinComic.org is associated with the Swarm group. “The Hunt For Satoshi” is a comic strip developed by them:
UPDATE: BitcoinPriceLive was in touch with Swarm directly, and learned that:
The bitcoin comic sold out (12 days before deadline) and we are organizing the worlds first decentralized demo day, in Silicon Valley on November 5th. www.swarm.co/v
Swarm is a promising concept, but it remains to be seen if they can deliver a fully functional product for IPO creation.
If you have more information about Swarm or crypto-equity technologies, please leave BitcoinPriceLive a comment below!