Blockchain Technology and Economy

Initial Coin Offering (ICO) has become a very popular method of crowdfunding recently. During a few years, a great number of funds were raised by means of ICO. It helped many startups, their teams and investors gained success and realized amazing ideas. But also participants of ICOs faced the risks connected with investments in scam projects. That’s why the new instrument such as the Security Token Offering (STO) appeared. During the ICO the utility tokens are issued. By buying the utility tokens the investors acquire access to the products or services in the future and teams attract the funds for the finance of their blockchain developments. Utility tokens are purchased exclusively for internal calculations, the exchange between users, fees for the provided functions of the software, and so on. Investment is required to simplify the use of the service. So what is Security Token Offering? STO means the emission of digital assets in accordance with requirements on securities legislatio...

The appearance of cryptocurrency is caused by the predictable transformation of the money form. This situation occurred due to the fact that the previous form of money is putting back the production and exchange processes. Also, there was a relevant background of searching the ways of cost savings of money turnover in order to reach the effectiveness of economic operations. Cryptocurrency doesn’t have the real value and doesn’t reflect the general economic situation of the particular country. It doesn’t depend on the banking system, the regulators of financial markets don’t control it. So is the cryptocurrency danger or opportunity to the global market? Despite lack of government control, cryptocurrency is rather reliable as decentralized program algorithm guarantees its stability. There are various opportunities that cryptocurrency brings to the global economy. Let’s take a look at some of them. The high level of privacy which enables to operates without any restrictions. The hi...