Decentralized Fundraising (Part 02)

In the last post, I shared with you some basic concepts of Decentralized Fundraising. In today's post I will go into details where I will try to explain some of the positive impacts of Decentalite Fundraising through examples. This project is currently the most popular and a place of interest because people all over the world are customers of this project. So it is very easy to collect funds from any part of the world. If you take a good look at its positive impacts in today's post, you will understand this matter better.

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Positive Impact of Decentralized Fundraising on the Crypto-Based Financial System:

1. Increased Accessibility:

Traditional fundraising mostly requires access to established networks and significant capital. Decentralized platforms allow anyone to raise funds. It is a democratic system and equal opportunity for all throughout the World. Small projects or startups can get benefits from it as well. For example, A small tech startup with innovative ideas can raise capital through a decentralized platform without needing to secure venture capital funding.

2. Enhanced Transparency & Trust:

Blockchain technology provides trust that transactions are transparent and immutable. This builds trust among investors. For example, A charity raising funds for disaster relief can use a decentralized platform to show donors exactly how their contributions are being spent. It will create confidence and will encourage more donations.

3. Global Reach:

Decentralized platforms are not bound by geographical limitations. This allows projects to attract investors from all over the world. For example, An artist in one country can crowdfund a project with contributions from supporters around the globe. He/She doesn’t need to worry about currency exchange rates or international transfer fees.

4. Lower Costs:

Decentralized platforms reduce the costs associated with fundraising as there is a huge reduction of intermediaries. This means that more of the raised funds can be directed towards the actual project or cause. For Example, A community initiative to build a local park can raise funds directly from residents & supporters. They don’t need to go to banks or fundraising companies.

Thanks for reading today's post carefully and I will explain to you in the next post the negative impacts of this type of fundraising in the traditional fundraising sector in the third part of this series.

~ Regards,
VEIGO (Community Mod)