ICOs have swept the globe over the past year as the latest and greatest (or perhaps just the least-regulated) method of gaining fast amounts of large startup capital. Miko Matsumura, limited partner of Pantera Capital, recently estimated that approximately 900 ICOs took place in the month of November; over $3.75 billion has been raised through ICOs this year alone.

The ICO industry has earned a bit of a reputation for being rife with individuals and corporations who are using the practice to get rich quick without actually offering a legitimate product in return.

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To change the culture surrounding  Blockchain  Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term-based startups, financial platform U.CASH has invented the so-called 'Initial Bounty Offering', or IBO, which asks for contributions in the form of contributors’ time and skills in  Exchange   Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term for cryptocurrency. U.CASH said that the practice was “a way to crowdsource human resources, business development, marketing and user acquisition for blockchain technology ecosystems.”

Like ICOs, But With “More Mental Commitment”

In certain respects, IBOs operate very similarly to the way that ICOs do. They take place within a fixed period of time, and distribute crypto tokens to participants in accordance with their contributions. However, instead of investing fiat, ETH, or BTC in exchange for ICO tokens, IBO participants must “invest their skills and time to earn rewards in the new cryptocurrency,” according to a definition from Decryptionary.com. “An IBO requires more mental commitment.”

According to a report by Urban Crypto, U.CASH conceptualized the IBO as a way to ensure that its project was fully developed and prepared prior to its launch. U.CASH reportedly noticed that projects supported by ICOS “often launch without proper research, software development, relationship building, or even functioning alpha or beta versions” that an IBO would essentially guarantee.

How it Works

Contributors to the IBO are given specific tasks that are associated with corresponding amounts of crypto tokens as rewards. For example, during the U.CASH IBO, so-called 'consumers' can receive token rewards for signing up for an account and linking Facebook and Twitter; they can produce songs, videos, or articles; 'coders' contribute developmental help, and so on and so forth.

CCN reported that U.CASH hopes that IBOs will encourage network growth as well as “create a fairer distribution of tokens.” The concept of an IBO is certainly refreshing in an ICO landscape that has transformed into a multi-billion dollar industry with its share of insider trading, hacks, and scams.

A project built by a community of contributors whose involvement in the project is not wealth-dependent could theoretically have a stronger support base at the outset of the project’s public launch, given that enough participants have contributed enough of the right kinds of efforts.

While the cryptocurrency industry is currently white-hot, and there are tons of opportunities to make tons of money, it is possible that the practice of holding IBOs could catch on, and could potentially act as a gateway to discover developmental talent that may not have otherwise had the opportunity to get involved with a blockchain-based startup.

In any case, the model empowers organizations and individuals who are not as motivated by money to get involved in the crypto space. IBOs certainly have great potential to build stronger communities, awareness, and participation in the blockchain world; whether or not IBOs will become commonplace can only be determined by the test of time.