Innvotion

The Greatest Innovation in the History of Humanity

Money is a central part of every body’s life and every society and has been more important for humanity than the wheel, the printing press, the steam engine, and the Internet. Money is one of the greatest innovations in our history!

Money is fundamentally an idea that if you provide some thing a good or a service to someone today, you want to trust that someone will provide something for you tomorrow. Nobody or at least very few wants to be the person who always gives and gives but never gets some thing in return. At least not in the long run. We want to trust that giving some thing away today will mean that we get some thing back tomorrow. This is a simple but very basic need for everyone. And money is the solution to this problem. If you get money for that which you provide today, you can use this money and buy what you need tomorrow.

Types of Crowdfunding

The two most traditional uses of the term reflect the type of crowdfunding done by startup companies looking to bring a product or service into the world and by individuals who experienced some type of emergency.

Many individuals affected by a natural disaster, hefty medical expense, or another tragic event such as a house fire have received an amount of financial relief they wouldn't otherwise have had access to thanks to crowdfunding platforms.

Barter to See Crowd

History of Money and the Blockchain

The only security in this world is a reserve of knowledge, not money so said the industrialist Henry Ford. Whether it’s the dollar, pound, rouble, rupee, euro or yuan, physical or digital, our entire world is built on currency exchange. But from barter, banknote to bitcoin, the means of exchange have evolved significantly.

Bartering was first recorded in Egypt in 9000 B.C., when farmers would go to market to exchange cows for sheep, with grains passing through the hands of harvestersin exchange for oils.

Special Considerations

The first instance of crowdfunding was recorded in 1997 when a music group from the United Kingdom raised money for a concert tour from fans. ArtistShare, which was the first crowdfunding site, was launched three years later. Almost a decade later, it became a key source for companies to raise capital.

Crowdfunding platforms were largely unregulated when they first became popular. But things changed over time, as a number of countries, including the United States, began placing restrictions on certain types of crowdfunding.

Blockchain

“Blockchain is a decentralized ledger where participants can confirm transactions without the need for a central authority. “Even though bitcoin is gaining more traction as time goes by, banks and businesses still seem more interested in the underlying blockchain technology for better or worse. However, as of 2016, the Blockchain industry has already received over a billion dollars of VC investment and industry-wide recognition with over 35 blockchain projects announced by the world’s foremost financial institutions in cluding NASDAQ and NYSE.

Crowdfunding

Crowdfunding are a digital medium of exchange that have blockchain as their underlying technology – two of the most popular being Bitcoin and Ethereum. The fact the technology is decentralized is the main reason why no existing financial institution or government owns or manages Bitcoin.

Financial inclusion

Crowdfunding also allow people to earn interest off their assets. Through the growth of Crowdfunding innovations such as staking and decentralized finance (DeFi), anyone in the world can earn interest, otherwise known as “yield”, by holding and staking certain tokens.No intermediary is needed to complete the transaction.

In 2020 alone, the total value locked up in DeFi projects so a red 300 times to roughly $21 billion.

Crowdfunding and blockchain technology, paired with the global growth of mobile and indeedinternet adoption, are tempering rising financial inequalities. And it is not inconceivable to imagine that in the coming decades, the world will have a much more democratized and accessible financial system. Financial inclusion could be achieved thanks to Crowdfunding.