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Which platform is the best for running an ICO?

Posted Dec 14, 2017

Token crowd sales can be exciting to execute, the thrill involved in the raising of funds to execute an ICO project can be overwhelming. With the right platform, one can raise millions in a matter of minutes. But it goes without saying that to execute a token contract, one must first understand the underlying factors responsible for the successful generation, implementation and execution of a token contract before going ahead to host other clients on a subnetwork.

Before we dive in to explain what platform may be best to run an ICO, first we must identify the key players and functions that together form a unique criterion for a success tokenization of digital assets.

Digital assets: this can be generalized to any form of binary that comes with an inherent quality of right to use. Their values are usually determined by their data strings and variables given by a consensus value. Most businesses today, find it convenient to convert their physical assets (in form of shares and stakes) to digital assists; this way, they can successfully exploit the full potential of the logical operations of computer generated computations. In order words; securities, economies and comptrollers are the basic qualities of digital assets that make them stand out. To process of generating a token form of digital asset is called tokenization.

A host is a network provider, an anchor if you like; who is responsible for giving you the required access to your own token that is linked to the network’s inherent algorithms and hash protocols. The token will operate as a sub-unit, (an entity of its own) under the hosts’ logical operations.

Sub-network: As a sub-host on the hosts’ network platform, you have the right to distribute the tokens that are being generated among users of your own platform as long as the smart contract logic is not faulted. The tokens are usually listed on the main host’s network but they are managed by the sub-network platform.

Once the token has been generated, you can apply for the new coin to be listed on exchanges so that it is tradable – that’s a concise edition of the token operation.

However, since ICOs have been established as unregulated crowdfunding events alongside the necessary protocols, it is important to ensure that every step is duly followed as provided by the host network, such that in the event of queries the smart contract can auto align itself.

One of the most challenging heights to overcome by ICO projects is the hosting of their products and services on a platform other than to build a blockchain from the scratch. Most projects require simplicity of operations and therefore would host their products on platforms that offer complimentary services like smart contracts while others may require the complexity of blockchain programming to efficiently deliver their products and services to the end users.

Important criteria to look out for when subscribing to a host network where tokens are to be generated would include studying the hash algorithm and the trustless consensus of host networks.

Platforms that allow for the generation of tokens used during a crowdfunding event include: Ethereum, Waves, Stratis, Neo, Universa, Dubai coin among others.

Characteristics of a viable platform

Availability of Smart contract protocols

The basic criterion for running an ICO on an external platform is the availability of a smart contract and token generation (tokenization of digital assets) service.

Smart contracts enable these generated tokens to be reliable and work within the environment of a trustless platform.

So far, the Ethereum network has proven to be the most reliable and most patronized token generation platform. It supplies users with the flexibility to create their Ethereum based tokens with an easy to use program code. Even non-programmers can easily edit the lines of code and upload the smart contract for the token generation.

The following quick steps provide an insight into how Ethereum based tokens are generated:

Step 1.

At this stage the sub-host client will decide the following:

  • The proposed Token’s Name
  • Its Symbol as the identity
  • Number of Decimal Places for the sub-units
  • Total Number of Tokens in Circulation

Step 2.

This is where the code for the contract will be initiated, basically there are generic codes online, that can be edited to suit client needs.

Step 3.

At this stage, the token would be tested to see if it meets the client’s requirement and serve as a sample protocol for the real deal.

Step 4.

Here, the source code should be reviewed and verified once more to avoid glitches; once smart contracts begin to execute, there are no fail-safes. It could be devastating if there were errors during the token creation and your end users will pay dearly. Individuals have lost fortunes due to errors in the lines of coding and security lapses on the host network.

Step 5.

The final step will be to release the token on the main market for potential clients to interact with.

(Note: more detailed processes can be obtained from the website).

Simplicity of usage

The simplicity of the steps involved is another very important criteria.
More so, transaction fees across networks and platforms should be reasonable and end user friendly. It is an important aspect, frequently overlooked by intending ICO projects. This could cost the startup exceeding a great amount of resources, as one may need to migrate from one platform to another when the limits of convenience are reached.

Once you start your ICO and the cryptocurrency of trade for your token have high transactional fees across the blockchain network, it can discourage prospective investors.

Spectators’ insight

Another important factor to note is the presence of long and short term investors as they constitute a circle of spectators for your ICO product. Ensure your token is on a user-friendly platform to enable them to use your products and services without a hitch, such as transaction fees and network block writing proficiency.

In conclusion, one should host their tokens on platforms that provide viable future prospects and have high-interest capitalization in the near future. As this, among other things are some of the highlights investors notice to drive their interest in any initial coin offering event.