The globally accepted bitcoin exchange software solution — Bitdeal now becomes the best technical companion for bitcoin and blockchain entrepreneurs, to execute a successful ICO business platform along with specialized smart contracts solution.
This featured article analyzes the flow of ICO smart contract business system and its classification that tells how bitdeal technical developers enters into the nook and corner of the new fund-raising model.
BUSINESS CLASSIFICATION ON ICO SMART CONTRACTS
Initial coin offering ( ICO ) now becomes the gold bot for entrepreneurs to raise funds and to release a new cryptocurrency into the blockchain technology. But in order to make a successful ICO and to negotiate the complexities, it should comply with two different smart contracts.
1. Token contracts
2.Crowd selling contracts
The need for classification on smart contract system is to diminish the pitfalls and to prevent the entire ICO campaign from chaos.
Token contracts define about the method of transferring the tokens and the methods of retrieving the balance amount for particular ethereum address. Aside from that, it also explores the number of associated tokens with an ethereum address. To transact the token between two ethereum addresses a request will be processed based on the written contract.
ERC20 is a token standard which describes the functions that an ethereum token contract have to implement.
Why ERC20 to integrate into ICO — token contracts ?
In general, a crypto token or digital token is virtually senseless. It will gain a specific value if the people start using it on other blockchain applications.
Notably, the applications are,
1. Cryptocurrency exchanges (bitstamp, bitfinex).
2. Altcoin or Etherum wallets.
3. Block chain explorers.
In order to make a token to contribute and interact with those applications, ERC20 was developed and implemented. So be sure whether your token smart contracts comply the above standard otherwise it will become a useless attribute in the etherum blockchain.
Bitdeal provides, business software solution for smart contracts which underlies the ERC20 standard. Token smart contracts have the number of tokens and the owners name, but which part will explain the distribution/selling of the tokens? That’s why we are going to see about the crowd selling contract.
SMART CONTRACTS — CROWD SELLING CONTRACTS ON ETHEREUM.
Crowd selling smart contract contains functionalities.
1. Minimum and maximum cap
2. Commencement and the declaration of crowd sales
3. Detail information about total supply
4. Displaying the offers and bonuses
#1 Min/Max cap :
Minimum Cap it is the goal for minimum target fund to be achieved through the crowd sales.
Maximum Cap it is the goal for the maximum fund to be collected through crowd sales. It’s the actual amount that a crypto project needs to develop and to improve their product
#2 Commencement and the declaration of the crowdsale :
Before the ICO campaigns kickoffs, people should know the star time and end time of the crowd sales.
Declaration of end falls in two different situations, 1. If the time deadline reached or if the Maximum cap reached.
#3 Total supply and market cap:
The popular approach is to determine the supply of crypto tokens before the campaigns commencement.
Pre-calculation of Total supply → Multiply the targeted maximum cap with the price of a single token
#4 Offers and bonuses:
It is just classical method to attract the investors and to encourage them to participate in the crowd sales.
Here the offer comes in reduction of token price
1. buying on the first day — 30% price off
2 second day to till the end of the second week — 20% price off
3. Till the end of the third week — 10% off
4. After that no offers.
All the above functionalities are let the people know about the crowdsale contract and encourage them to involve in crowd sales. for the sake of greater clearness about the crowd sales, integrate and explore the following things
* Achieved market cap
* Displaying the number of sold tokens
* Details about the transactions or sales