June 20th, Social Kapital , a decentralized VC fund and business idea marketplace, is to launch its crowdsale campaign. The news comes after the immense success of The DAO , a similar company, that has just closed the largest recorded crowdfunding campaign in history.
Whilst The DAO pursues the holy grail of complete automation on the Blockchain, Social Kapital places more emphasis on using the Ethereum Blockchain to power its community and governance committees. DAO success encourages followers
The DAO, a fintech industry phenomenon, has recently managed to secure more than $132 million in what was the largest recorded crowdfunding event in history. Such an outstanding result was not achieved due to some unbelievable product or service – in fact, the company does not offer either, as of yet. The DAO’s main virtue lies in the innovative way of its organization, enabled by its underlying technology – the Ethereum Blockchain.
The DAO is a decentralised investment fund whose shareholding and business processes are codified as Ethereum smart contracts. Any project contractor may submit a proposal to The DAO for funding. The so-called curators (software experts) inspect the smart contract accompanying the proposal to check for possible attacks. If the proposal code is given a clean bill of health by the curators, token holders can then vote on whether to finance the proposal. If a funded proposal turns profit later down the line, they are eligible to receive revenue from its operation.
All The DAO’s decision making going forward is automated and autonomous. Ether is disbursed to contractors, and revenue is received from them entirely via smart contracts. Security concerns higher on agenda
However, such a revolutionary concept, potentially capable of changing the entire way business is done in the coming decades, does not come without its own flaws. Several independent experts, such […]
