TOP Platforms for ICO Solutions Development
The appearance of cryptocurrency solved several serious problems of the financial market. First of all, due to the Blockchain technology, the middlemen were removed from the financial transactions — in this way, the transactions became much more secure than before. Secondly, record tampering became impossible. Thirdly, the standard funding route was replaced by the ICO route. The latter thing is among the most important advantages of the cryptocurrency development. But why? And how to develop an ICO solution? Keep reading, our article will answer all of these questions.
What is an ICO?
To make things clear, let us start with the definition of ICO. So, ICO, or Initial Coin Offering, is one of the most popular cryptocurrency trends nowadays. In simple words, ICO means that units of a new cryptocurrency are offered in exchange for such demanded cryptocurrencies as Ethereum and Bitcoin. ICO solutions started gaining popularity in 2013, when they were pretty often used for creating new cryptocurrencies. Ripple is considered to be the first cryptocurrency distributed with the ICO, but Ethereum is definitely the most successful one.
Regarding the legal state of ICO, it is undefined in most cases — this means that in many jurisdictions the funding with an ICO is not regulated. Therefore, the token is sold as a digital good, and there are no difficulties with launching new cryptocurrencies with the help of ICO. On the other hand, certain jurisdictions do their best to regulate ICO, and this tendency is getting more and more popular. In the future, it is expected that the ICO will be regulated completely. However, at the moment there is an alternative to ICOs — so called STOs, or Security Token Offerings. STOs are considered to be more stable and credible, as they have attributes of security. For example, a token backed by real assets (like real estate) is STO.
Top 5 Current Platforms for ICO Development and Launch
In case if you decide to develop and launch your token, you will find out that Ethereum is the most sought after platform to do this. That’s logical, since the Ethereum platform is open-source and boasts the Smart Contract feature. So, it is the most obvious choice, but it is not the only option available. Here are five platforms you can use to create your own ICO.
Waves positions itself as an Open Blockchain platform — this means that you will be able to use all the functionalities of the Bitcoin, and even more. Besides, Waves offers a fully functional exchange and allows mining or forging.
So, among the advantages of Waves we can mention high accessibility, Smart Contracts, easy token operations, and decentralized exchange. On the other hand, the Waves platform is not the best choice in terms of exchange, as there are not so many buyers and sellers.
Bitshares is a decentralized Smart Contracts platform offering fast exchange of cryptocurrencies. By the way, price-stable cryptocurrencies are one of the main benefits of this platform — its Smart Coins are pegged to gold, US dollars, or other assets.
In addition to that, Bitshares boasts a built-in support for subscription and recurring payments, while all the tokens on the exchange are backed up by twice the amount of that asset. But keep in mind that the interface of this platform is not very user-friendly. Apart from this, Bitshares is considered to offer too many advanced features, so it may be complicated for beginners to use it.
Nxt — an open source platform which is built on its own source code and offers numerous interesting features. These are some of them: decentralized asset exchange, voting system, data storage, and alias system. Besides, the platform offers the plugin support. Another good thing is that Nxt offers a special asset exchange platform. However, it is impossible to buy tokens directly with fiat currencies.
The NEM platform has such features as: the proof-of-importance algorithm (or POI algorithm, if short), multi-signature accounts, and encrypted messaging. Sounds good, but the number of NEM users is not very inspiring.
Stellar, or Stellar Lumens, is an open platform with a pretty lightweight codebase. Apart from this, Stellar offer multi-currency transactions. The platform is fast, and the decentralized exchange is available as well. However, Stellar is not as transparent as most other platforms, and the number of its users is not that big.
Using the Existing Solution vs Building From a Clean Slate: What to Choose?
You already know some advantages and disadvantages of using existing solutions, but what’s about building ICO from the scratch? Is it a better option or not?
Using the existing solution
Community support — even in case a platform doesn’t have a lot of users, you can still count on a certain community support, while building ICO from the scratch doesn’t have such an advantage.
Token reliability — existing platforms have no issues with security and token reliability.
Known integration patterns — you won’t have to invent something new regarding integration.
Relatively slow transaction speed — some platforms are considered to be fast enough, but most of them are still relatively slow when dealing with transactions.
Lack of upgrades — most of the known platforms didn’t have crucial upgrades since their launch.
High maintenance costs — most existing platforms are pretty expensive in terms of maintenance.
Building from a clean state
Flexibility — building an ICO from the scratch, you can take into account all your needs and plans, while in case of using existing platforms you will have to follow their rules.
Relatively bigger investment attractiveness — thanks to this factor, it is easier to launch an ICO.
Moderate maintenance costs — unlike using existing platforms, building from a clean state is relatively cheap.
Lack of tech experience — since you create something absolutely new, you won’t be able to count on serious tech experience in community support.
Problems with scaling up — due to the novelty of the solution and lack of existing developers for support, you may have troubles with scaling up.
Time-consuming — developing something new always requires much more time than building something when using an existing solution.
How to Decide
In case you decide to use an existing platform to build an ICO, you may want to answer the following questions. There are more than enough platforms to choose from, so the answers will help you to make a choice.
Does your team have experience of working with a platform? If yes, this platform can definitely be considered as an option. If no, your team will have to spend extra time on learning how to work with it. However, it can make sense in case other features of the platform meet all your needs. Just keep in mind that in this case the process of building an ICO will take even more time than you supposed.
Are there any other ICOs which used this platform? Are they successful? If yes, this is definitely a good sign. Besides, you can learn something useful from the experience of the previous projects. If no, we recommend you to think twice before choosing such a platform. Some platforms don’t have a lot of users, but those ones which were never used for launching an ICO may have even fewer of them! This means that it may be difficult for your project to succeed.
Is everything okay with the white paper? The white paper is a documentation where you can find all the details about an ICO platform, and going through it is the best way to learn everything about a particular platform. A reliable and trustworthy platform should have its white paper published on its website. If it is not provided, we recommend you to start looking for another platform immediately.
How many cryptocurrencies does the platform offer? The more cryptocurrencies the platform offers for exchange, the more attractive it is for users. So we recommend choosing that one which offers a lot of cryptocurrencies — in this way, your ICO solution will have higher chances to succeed.
Now you can go through available ICO platforms and make a choice or decide to develop your solution from the scratch. However, if you still have any questions about ICO, Blockchain development, Blockchain protocols (like EOS) or cryptocurrencies (Bitcoin, Ethereum, NEO, and others) feel free to contact us — we would be pleased to help you.