How CrowdWiz Is Giving Investors Full Control Using Smart Contracts
When you buy car insurance, you enter into a contract with an insurer. The basic agreement being that if you happen to get into an accident, your insurer will step in to settle the claim. What happens if they decide not to keep their end of the bargain? Well, depending on your jurisdictions, you are likely to have the police and a court system to settle the dispute.
But the long arm of the law of our national court systems does not extend to the internet. There isn’t an internet court system to resolve online disputes. Yet, more and more people want to conduct business online with the same assurance, that a business partner won’t renege on a deal.
On the internet, nobody knows you are a dog, so trusting a third party is obviously out of the question.
Smart contracts are a way to ensure no-one cheats over the internet. You can write one for anything as long as you agree on how to resolve disputes.
How Smart Contracts Work
Typically, an agreement between willing parties is formalized into a programmable code and preset to execute itself based on certain conditions. The role of a trusted party to enforce is swapped for code whereby once preset conditions are active, such as choosing from a list of investment decisions, the program executes a task, such as to releasing some mutually held funds.
That’s pretty much it. The next step is where to run this program.
If we lean on a network server controlled by a single person or company, we run the risk of data tampering which is incongruent with the objectives of smart contracts — to run independently with transparency and no possibility of interference.
Fortunately, we have the blockchain, an incorruptible distributed network that complements smart contracts with immutability. All parties are thus able to verify its content and trust its tamper-proof.
Up until the invention of blockchain eight years ago, the deployment of live running smart contracts was severely hindered by reliance on intermediaries.
So What Is Possible With Smart Contracts
All sorts of magic to be honest.
One token smart contract, for example, is threatening investment intermediaries like VCs by radically changing how blockchain startups get funded on the Ethereum blockchain.
CrowdWiz has adopted the ERC20 token smart contract for its initial coin offering. It is pretty straightforward.
A WIZ token smart contract code was written using solidity, Ethereum’s programming language to define a standard set of functions:
- sending funds via Ether,
- registering the associated address and finally
- paying out tokens to investors according to a formula and schedule
Once deployed on the Ethereum blockchain, all services on Ethereum including wallets, exchanges, and block explorers automatically recognized the CrowdWiz token.
As you send your Ether contribution to CrowdWiz’s official ICO address, a smart contract running in the background receives your contribution and records it with your matching address. Eventually, after the period expires, all contributors are automatically apportioned with tokens to their address as per the distribution schedule.
It is incredibly fascinating how a bunch of code runs autonomously and allocates millions of dollars worth of tokens without the need for a third party. It is almost too good to be true, but it is happening. Hundreds of companies have already used this smart contract crowdfunding method to raise close to $3 billion.
The WizFund Smart Contract
But there are more innovative use cases for smart contracts beyond ICOs. Like the financial investment service CrowdWiz which automates decision making for hundreds of thousands of investors on its platform. Anyone of them can upvote their top investment picks using their wallet accounts to cast a vote for a major crypto asset, an upcoming ICO or even non-digital assets such as lending, art, and real estate.
The WizFund contract is baked into the code underlying the platform using a wisdom of the crowd algorithm that responds only to commands from its members. After that, all the decisions are processed to execute an investment instruction and arrive on the path forward for the project.
There is little need to worry.
Since it runs on the Ethereum decentralized blockchain, investors can trust the code will execute precisely as programmed as per the agreement. This neat feature ensures CrowdWiz platform
Can never be breached by an outsider
Is transparent for all participants to witness the execution
Removes the middleman along with associated jurisdictional burdens
WizFund is a pure democratic investment entity powered by smart contract.
In Conclusion
Smart contracts will power the new economy where jurisdictional and geographical limits are relics of the past. Cryptocurrencies have already made it possible to transfer and exchange value online without intermediaries. The next phase is making business possible on the web for all. With no legal frameworks that govern online agreements, smart contracts will be key to online business prosperity.
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