How Does ICO work under the hood? — Programmer Explain

You are exposing yourself in a high risk situation you don’t even know while buying buying crypto currency if you don’t know this.

There are currently more than 2,000 blockchain projects on the market. More than 90% of it are token not a native asset .

Do you know how much it needs to create a token?
— 「$50」

Let’s dive in!

Smart Contract For Fun Fundraising

What is ICO?

ICO short for Initial Coin Offering . ICO means someone give away their cryptocurrencies (usually in Ethereum or NEO) to the particular project, in return, you will have the token from the project that guarantees for future goods or services.

What is ERC20, NEP5?

Both ERC20 and NEP5 , is a specification of how a smart contract should look like with methods that could be called for Fundraising .

ERC20 specification

NEP5 specification

Example

With token named COB, the smart contract has needs a method called totalSupply in order to get totally supply of this token in the market. If you want to know more about smart contract, go to COB smart contract to try out yourself.

Token (COB) total supply

In Sum, both NEP5 and ERC20 are smart contract that has methods needed in order to do fun raising.

Useful Link

Blockchain Link List
Blockchain Posts List

About me
I am a full-stack javascript developer and one of the contributors for NEO blockchain project.

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