First blockchain-based Crowdfunding (Part 02)
In the last post I discussed to you how and with what purpose the world's first blockchain-based crowdfunding project was started. Some of the initial wording and motives behind this incident, which occurred in 2016, are discussed. In today's post I will try to explain about the mechanism of this platform i.e. how it works. Let's get started.
Mainly Golem operates as a peer-to-peer network where users can share and rent computing power. The uniform resource allocation among different groups of people working online with computers throughout the world was the key thinking. The platform uses the Ethereum blockchain to facilitate transactions between those who need computational resources and those who have spare capacity to offer. This decentralized approach ensures that no single entity controls the network.
To make this happen there is no presence of the intermediaries and it will be completed directly between the parties. When a user needs to perform a computational task, they can submit a request on the Golem network. The network then matches this request with providers who have the necessary resources available. Once a match is made, the task is distributed across multiple nodes in the network. And in the network finally, it is processed and returned to the requester. In return, the providers are compensated with GNT (Golem Network Tokens). This is the native crypto of the Golem platform.
What sets Golem apart from other crowdfunding platforms is its use of blockchain technology to manage and record all transactions. This decentralized ledger ensures that all contributions are transparent and immutable. And by using smart contracts, Golem automates the process of distributing funds and rewards. In this way, it is overcoming most of the challenges faced by the traditional crowdfunding process. In the next post, I will try to share the impact of this project in the traditional sector.
~ Regards,
VEIGO (Community Mod)
I did not know about this blockchain based crowdfunding and after going through this article I have a thorough understanding about this topic which I think is quite useful and more people should know about it. So I recommend this article for those people to go through and learn something that can enhance our knowledge.
@tipu curate
Upvoted! Thank you for supporting witness @jswit.
I Have seen the first part of it. Today you have shared another one. Thanks for sharing.