Hope you may have an idea about the general smart contracts,
Smart contracts :
Digitalizing the traditional contracts and lessen the paper works which we do in traditional contract system. Most of the clauses in traditional contracts happen to form one side or sometimes both the side. So to avoid those struggles smart contracts have emerged and the unexpected benefit of the contract system is, it reduces the transactional cost.
But what are ICO Smart contracts?
ICO is an ultra fund-raising model where everything processed through digital operations which we called as smart contracts. Where Buying, selling, distributing the tokens, investing and everything underlies the concepts of smart contracts system.
ICO smart contracts can be classified in two namely
- Token smart contracts
- Crowd selling smart contracts
This classification does not refer to that there is a split in Smart contact system, but it Splits up the entire ico into two different processes.
What a token smart contract does?
This kind of contract defines the number of tokens to be sold, and it defines the method of transferring the token to different etherum addresses. Also, it declares the number of associated token for a specified ethereum address.
Another thing you have to note is Every token contracts system must comply the ERC20!
** What is an ERC20?**
ERC20 is a token standard for distributing the tokens. In general none of the created crypto tokens have value, but it will acquire a financial it must contribute in blockchain applications.
The blockchain applications are
- Exchange or trading portals
- Altcoin or cryptocurrency wallets
- Blockchain explorers
So ERC 20 is the standard which explains about the functions and the necessary steps that you have to do for a token to contribute in the above blockchain apps.
Here we can call this Process as PRE - ICO
Crowd selling contracts :
In order to distribute the tokens to the investors, an ICO must fall in the above contracts system.
Crowd seeling contacts gives you the brief definition about
Launching a white paper which briefly explains about the crypt project for what the ICO executed.
Commencement and the end of the ICO campaign
Targeted min/Max cap
Pre - calculating the total supply
Offers and bonuses to encourage the traders and investors
An ICO will ends in two cases
- If the time stamp exceeds or 2. The targeted fund achieved
So it is clear that in order to execute a successful ICO it must cover the above two contracts systems.
Being a small entrepreneur it is really hard to execute ICO without the help of techies. Here bitdeal extends you the warm hands, in order to help you and to execute your own ICO platform. Bitdeal always ready to stand nearby you, to achieve your goals. The following blog describes How bitdeal is helping you to achieve your business dream by executing an ICO platform with smart contracts.
Smart Contracts With ICO - A Turnkey Business Solution for New Digital Assets