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The Future of Fundraising-the initial loan procurement

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Source: Torus Solution

One could be forgiven for shuddering a little when they hear the phrase “raising funds” when discussing the blockchain and cryptocurrency space.

To say that Initial Coin Offerings have taken a bit of a battering over the past few years would be an understatement, with numerous projects raising money via the ICO method only to go under and disappear with people’s money.

The legality of ICO’s was always going to be brought into question, especially when hundreds of millions of investor dollars seemingly disappeared into thin air.

ICO’s may not have matured as many in the industry had hoped, but startups in the blockchain and crypto space still needed to raise funds somehow.

Enter the Initial Loan Procurement

Some form of crowdfunding was needed to replace the ICO method and is looking to solve the security issues that ICO’s posed, the industry decided to look inwards.

Smart contracts are self-executing contracts with the terms of any agreement between two parties written directly into the code that makes up the contract itself.

With the ability to allow transactions and agreements to be negotiated and carried out between even anonymous parties under transparent and secure conditions it became clear that such contracts could form the basis for a new method of fundraising.

How do ILP’s work?

In simple terms, an Initial Loan Procurement [ILP] allows both borrowers and creditors to enter into a loan agreement via a legally-binding smart contract. Based on the blockchain, the contracts are immutable, which provides a level of security that was sorely lacking in the ICO model.

A creditor can lend money to a project or a startup safe in the knowledge that their capital is secure, while the recipient can gain access to the finance it requires.

Real world use

Often it’s believed that the crypto and blockchain industry operates in a bubble of sorts, that the technology and the benefits don’t really apply to the “real world.”

This couldn’t be further from the case, with one excellent example being the B11G project, an industrial complex being built just outside of Tallinn, the capital of Estonia.

With a development budget of €3.6 million, building on a plot of 10,092 m2, this is a fantastic example of blockchain technology being brought to the commercial real estate industry.

A minimum commitment of 2 ETH, which is equivalent to €240 is all it takes to get involved in this project, which sees an interest rate of 14 percent yearly.

With ILP’s more reliant on the performance of the company rather than being tied to a token, there’s a belief that this form of fundraising could go some way to reversing some of the damage done by ICOs in the past.

Time will tell on that front, but it’s certainly a step forward.



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Guest Post

Passing the test with flying colors: Securing employee accreditation through Blockchain

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Passing the test with flying colors: Securing employee accreditation through Blockchain
Source: Lition

In today’s fast-paced world, businesses need to ensure their employees are well versed in relevant technology, regulations, and practices. Top-notch training programs are vital for keeping employees up to date and at the top of their game. But unfortunately, current certification methods aren’t airtight.

Online certificates for successful completion of education programs are often issued on PDFs, which extremely vulnerable to falsification, theft, and duplication. 

And that means company leadership and customers can’t always be certain team members have completed all necessary training and received the proper accreditation.

Luckily, all this is about to change thanks to ERC721 tokens and recent developments in blockchain infrastructure. As an example case study, E-learning provider Lawpilots is collaborating with a blockchain infrastructure firm Lition to finally deliver secure employee accreditation certificates.

By deploying ERC721 token certificates, education programs can kiss vulnerable PDF certificates goodbye forever. By storing certificates on a private blockchain, documents are able to be secured and made available to relevant parties without putting the certification’s authenticity at risk.

However, not all blockchain platforms are created equal, and any platform up to the task must be able to secure certificate on the chain while allowing the data to be deleted when it is no longer relevant.

Let’s take a glimpse into the future of document sharing and security.  

In this kind of system, when a user completes a training module and receives their certificate, they can then upload the certificate to a private sidechain on the network, securing the record. 

The certificates could then be shared upon request with relevant individuals or organizations to prove that the user passed the course. Counter-parties could easily connect to the private sidechains to inspect documents, with access limited to specific time frames or the maximum number of clicks if necessary. 

Many certifications expire after a set period of time, requiring the user to partake in further training. While most blockchain networks are immutable, and therefore would leave expired records in the system, a deletable blockchain infrastructure could be set up to automatically destroy certificates after they are no longer valid. 

Deletability would also give users control over their personal data while guaranteeing enterprises that their systems are GDPR compliant.  

Lawpilots chose to work with Lition precisely because of their novel public-private deletable blockchain infrastructure, which allows enterprises to take advantage of an uncompromising blockchain network and delete data when necessary.

Through this kind of architecture, education companies and their clients could guarantee their employees receive and are up to date on the latest training, helping their businesses run smoothly and protecting themselves from legal vulnerabilities.

The implications of this technology cover countless industries. Nearly every type of business needs to be able to eliminate counterfeiting and provide document security.

Think of all the sensitive information we pass around on PDF that can be easily tampered with or duplicated. Transcripts, university degrees, bank statements, real estate records, healthcare information.

 The list goes on! Isn’t it about time the world doubled down on document security and stopped relying on PDFs that are clumsy, easily doctored and insecure?

Dr. Richard Lowhasser, Lition CEO

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