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ICOs for Tech Startups: OnPlace’s Blockchain-Backed Ecosystem


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Consider that as of last summer, the 5 biggest tech companies in the world were worth a combined $3 trillion. This is more than the GDP of the UK or of France. As any investor knows, these companies all had humble beginnings, but even with the benefit of hindsight most people wouldn’t have been able to invest in those companies when they were starting out – since most early stage companies lack a means to connect with a microinvestor audience. If you have a small company, it is currently not really possible to raise significant amounts of money outside of the conventional investor industry.

There are many ways that blockchain technology could provide a new revolution in investing possibilities. Developments like smart contracts and decentralized markets as well as token based investment open up the possibilities of decentralizing fundraising. This is evident in the flourishing of ICOs. But ICOs are obviously not applicable for all companies, especially smaller companies or those that aren’t launching their own crypto platform. A new startup based in Delaware is aiming to leverage these capabilities of blockchain to make change the investing ecosystem. OnPlace is building towards its token generation even (TGE) in February 2018.

Tech industry still lacking decentralization

The tech industry has broken down a lot of barriers for those working in it and also the users of its products. In the past 40 years, we have seen unprecedented growth in wealth and productivity thanks to the work of startups, and the rise of the tech industry has reduced the influence of corporations and governments and made success more accessible to all, entrepreneurs and investors alike.

But there is still a lot of progress to be made. Starting a company is still fraught with the difficulties of managing finances and documentation, and most startups still need to deal with the closed shop of the VC establishment.

Furthermore, from an investor perspective it is tricky. Accessing data on a company, ensuring that the investment contract is up to scratch, and the simple issue of finding and transferring funds to the target company is difficult. Platforms like Kickstarter are great for creative projects, but lack the security and detail (as well as the contract backing) of conventional VC, so investing with Kickstarter will offer the investor fewer options and possibilities.

Using blockchain to disrupt venture capital

OnPlace are targetting two related investment areas with their platform. The first is for private investment in promising startups. This market will allow investors to select from projects that have been analysed in terms of their revenue, team, and other due-diligence metrics. This takes a lot of pressure off the investor in terms of gathering information. The second part of the platform is a crowdfunding platform closer to the likes of Kickstarter. Both markets will utilise the PATS protocol, which is explained by the OnPlace team:
“The concept of the Private Assets Tokenization System (PATS) protocol is to tokenize over-the-counter (OTC) assets for customers to invest into. The protocol entails multiple steps firstly establishing a marketplace opportunity window (MOW), following the MOW there is a selection of projects to be tokenized based on the criteria and communal discussions of crypto-investors.

The next step is the tokenization of various projects that were eligible under the PATS protocol leading to the circulation of the established PATS tokens. Lastly the tokens are supported during their life cycle which ensures a complete decentralized control of the tokens under the control of the token holder community.”

They explained the benefit of this protocol for the everyday investor: “the decentralization of audit and participants’ decision-making and through the integration of management principles directly into the asset itself will open potential access for everyday people of the world to purchase OTC assets which is often a daunting experience.”

So the team are making it possible to be an early-stage investor in the next Uber, Google, or Qualcomm, getting in right at the ground floor.

The Onplace Token Generation Event takes place next month.

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Typing Errors in Ethereum Transaction Addresses Caused Losses of Over 12,600 Ether

There is nothing worse than losing funds stored in your crypto wallet. It is pretty obvious that this situation has been a big problem for most users at some point in their lives. A new study shows that over 12,000 ether has been lost due to typing errors that sent money to non-existent addresses. Losing Ether due to Typos There are a lot of things that can go wrong when completing cryptocurrency transactions. For instance, one could enter a completely wrong address due to copying it incorrectly, a QR code could give an error when trying to send money, or one could simply type an address incorrectly. In the latter case, one’s money will be lost forever, as the transaction is often broadcast to an address that doesn’t even exist. Recovering such a transfer is pretty much impossible these days. Research by Alethio Analytics paints a very worrisome outlook in this regard. More specifically, the company claims a lot of ether has been lost due to sending money to nonexistent addresses. It is evident a lot of users have sent money to wrong addresses over the years, and it is possible that up to 12,622 ether has been lost because of typing errors. This is not a figure most people will feel comfortable with whatsoever. Although the exact amount of money lost is subject to interpretation, Alethio Analytics can make some sort of assumption in this regard. After thoroughly analyzing Ethereum’s external and contract accounts, it’s clear there have been quite a few wrong transactions up to network block 5 million. Although it is difficult to determine which addresses are perfectly fine and which are not, the team used an interesting technique to do so. Since no similar-looking Ethereum addresses can exist, they looked at Ethereum addresses which are almost identical. Assuming such addresses exist, the funds stored in one of two addresses were probably sent erroneously. It is not a foolproof technique by any means, but it is certainly one way to go about things. So far, the company’s research seems to indicate that over 2,600 erroneous addresses have been used as part of Ethereum transactions over the years. This means just over 12,622 ether are potentially lost forever, although this number is not exact. Considering that the value of ether has risen over the years, it is safe to say this money adds up to a nice chunk of change. Who this money belongs to exactly remains to be determined at this stage. The bigger question is whether or not more of these typos will occur in the future. Since there is no foolproof way to send cryptocurrency transactions in this day and age, we can only hope people become a lot more careful when it comes to moving funds. Otherwise, this may only be the tip of the iceberg in terms of money lost forever due to human error.

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