Please check out latest news, expert comments and industry insights from Coinspeaker's contributors.
Initial Coin Offering (ICO) or token sale require a lot of time and effort to run a digital token ecosystem, and because of that, many businesses fail on their ICO alone. This is what blockchain-based startup Simple Token is hoping to aid.
With the technology space booming, and new waves of technology starting to form, there is a huge and competitive marketplace for developers and app builders. However, the market place is a difficult one to get into, as well as stay relevant on, especially with the emergence of Blockchain technology.
Blockchain technology is starting to crest as the latest wave of revolutionary and disruptive technology. Like the fax machine, the internet, and Voice over IP, Blockchain technology is aiming to literally change the way technology functions.
Because it is such a versatile and powerful tool, many developers have been keenly eyeing it out. However, its application and deployment is not that simple.
The Power of Blockchain
There is a bit of a monopoly when it comes to app growth and development for small businesses and startups. Some of the bigger more established companies offer ways to make it in the market for app developers, but it is a controlled system.
This is another reason why Blockchain technology seems to be the answer as it decentralizes the system and empowers the developers to create fairer and more democratized digital services.
The Blockchain offers businesses more open and transparent transactions, as well as meaningful economic incentives and more monetization. Because Blockchain and Tokenization can offer so much to companies, and aid in their own day to day running and growth, it is a surprise that not every company is jumping on board.
The Difficulties of an ICO
The issue is, to be a Blockchain business requires a lot of additional work, and essentially, the minting and running of a new digital currency. Some companies have gone down this route, and launched their own Initial Coin Offerings (ICOs), but it is a difficult path.
ICOs require a lot of time and effort to run a digital token ecosystem, and because of that, many businesses fail on their ICO alone. This is what Simple Token is hoping to aid.
How It Works
Simple Token, and their own ST Token, essentially works like a foundation for companies to create, launch and manage their own branded digital token upon. There is all the benefits that come with having a digital token, and a Blockchain business, but without needing to mint and maintain their own publicly-tradable crypto tokens.
Powered by their OpenST Protocol, Simple Token believes that allowing companies to stake their new branded token upon their Simple Token, the company then has an open scalable side Blockchain which functions in a cryptographically auditable manner.
The branded tokens technically cannot be traded on secondary market themselves, rather only for Simple Tokens.
Thus, the legal, regulatory and technology headaches are removed, but there is all the benefits that come with being a Blockchain, tokenized business.
Bridging the Gap
What Simple Token believes they are achieving with their project is bridging the gap between the mainstream digital market place, full of innovative and ambitious projects, and linking them with the latest and newest technological wave.
Blockchain technology is still burgeoning, and there is an entirely new marketplace developing. The developers who are in the space now may not have the expertise, and with Simple Token, they are essentially able to outsource their Blockchain needs while being protected from the repercussions.