This Saturday, 24th November 2018, Aeternity Africa will be showcasing a platform for enabling SME’s raise startup and scaling capital using blockchain technology through a concept known as an Initial Coin Offering (ICO), a fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for bitcoin and ether. It’s somewhat similar to an Initial Public Offering (IPO) in which investors purchase shares of a company.
ICOs are a relatively new phenomenon but have quickly become a dominant topic of discussion within the blockchain community. ICOs are easy to structure because of technologies like the ERC20 Token Standard, which abstracts a lot of the development process necessary to create a new cryptographic asset. Most ICOs work by having investors send funds (usually bitcoin or ether) to a smart contract that stores the funds and distributes an equivalent value in the new token at a later point in time.
Aeternity aims to help SMEs weed out negative elements like scams and frauds as well as enable investors looking for viable ventures to weed out scams by pre-screening businesses via a number of parameters that form part of the due diligence process. Other functions include the implementation of aeternity blockchain features such as the dominant assurance contracts and use of oracles to ensure that the provider of a good or service only gets paid after delivery.