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Decentralized crowdfunding platforms such as DAISY
Global operate on blockchain technology, which provides transparency,
immutability, and accountability throughout the fundraising process. By
recording transactions on a decentralized ledger that is accessible to all
participants, blockchain technology ensures that fundraising activities are
transparent and tamper-proof, reducing the risk of fraud, mismanagement, or
manipulation. Investors can verify the legitimacy of fundraising campaigns,
track the use of funds, and hold project creators accountable for delivering on
their promises.
Furthermore, smart contracts, which are
self-executing contracts with predefined terms and conditions encoded on the
blockchain, automate the fundraising process and ensure compliance with regulatory
requirements. Smart contracts facilitate the issuance and distribution of
tokens or equity to investors, enforce contractual obligations, and provide
transparency and security in fundraising transactions. By leveraging smart
contracts, decentralized crowdfunding platforms minimize the need for
intermediaries, reduce transaction costs, and streamline the fundraising
process for startups and investors alike.
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