BURST Stunning Progress – Crowdfunding as a Turing-Complete Smart Contract

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The second generation of cryptocurrencies keeps the ideas of their predecessor Bitcoin while adding new innovations and cutting-edge features to the blockchain technology. Central points of discussion within these ‘Cryptocurrencies 2.0′ for the last two years have been Smart Contracts/Automated Transactions. However, seldom have any of the discussions been followed by implementation of this highly advanced technology; a rare, virtually unique, exception is the cryptocurrency BURST (Burstcoin) with its breakthrough research and technological innovation.

In previous BURST press release, we firstly described the inclusion of Smart Contracts/Automated Transactions in the core code of the currency and, an actual implementation of the revolutionary technology , in the form of a totally decentralized lottery called LuckyAT. It was stated that the seemingly simple lottery would lay ground for further, more complex Smart Contracts/Automated Transactions. In a way, we are only at the beginning of a long journey, but BURST can yet again deliver ground-breaking news.

Now, in mid-February, a new and more advanced case is announced. BURST’s developers have been able to implement CIYAM’s crowdfunding innovation. With sites as Kickstarter, the popularity of crowdfunding has increased immensely. However, these initiatives have always remained centralized, as in Kickstarter, where certain rules must be followed and fees paid.

Crowdfunding & Cryptocurrencies

The first crowdfund case chosen by BURST was an ‘ATDevelopentFund’; the developers simply asked the community for 1,000,000 BURST. The fund’s purpose was to extend the technical advancement and general product development and marketing for AT and the BURST platform. It is, however, important to explain why, in particular, a development fund was chosen first. In the world of cryptocurrencies, it is commonplace that the developer of a new currency ‘pre-mines’ the coins, getting the reward from a number of blocks without competition before regular mining starts and hard competition begins.

This form has, understandably, been heavily criticized as it is unfair to normal miners and investors. Another way to get money for development and PR is to issue an Initial Public Offering (IPO). An IPO is a public offering to buy shares, (or in this sense crypto-coins,) before the coin is listed on a public exchange. For the buyer of an IPO, there is a fairly large risk: If the price becomes lower on the exchange than the price offered in the IPO, the investor loses money while the investor makes a profit if it gains value. A cryptocurrency called ‘Ethereum’ did a huge IPO last year, which raised $15 million. This money was used to hire developers and acquire more needed resources.

Given the above, how is it possible to raise such money? The simple answer: Ideas, PR, a good team and lots of promises. Ethereum, mentioned above, has a big interest in technology similar to the ones developed by BURST. However, there is a big difference between the two: after a year since Ethereum’s IPO, it is still a question whether it can live up to the self-imposed high expectations or it will end up with nothing but empty promises. While BURST since August 2014 has chosen another path, without IPO’s or premine, only work done by volunteers, they have delivered what other promised. With the success shown by implementation of ATs, specifically with ‘LuckyAT’, the time had come to test the crowdfund AT case with the ATDevelopentFund, and at the same time assess the community support to BURST. The fund was filled in a couple of days and will become available to the developers of BURST. Without any intervening authority, without centralization, without high fees. So they first delivered and after asked from community to trust them with an investment in the future of BURST platform & cryptocurrency.

But wait, there’s more…Lighthouse big flaw.

Although still in beta, one other service has very recently been able to offer blockchain crowdfunding. Supported by a bitcoin millionaire, ‘Lighthouse’ clients use bitcoin’s blockchain to pledge for funds to different projects. Recently, they succeeded to raise 3.5 bitcoins to a medical treatment for developing countries. While having monetary support and using a well-known cryptocurrency (Bitcoin) clearly is helpful for them but Lighthouse has one obvious and significant flaw: Their projects can only handle 684 pledges/contributions per case. This suggests that they are heavily limited when trying to fund major projects.

This is not only a theoretical predicament: If a hefty case has more than 684 contributions sent while not reaching the needed limit for payout, the case – no matter how good it is – simply will be marked as failed and the funds will be refunded to those pledging. Even worse, Lighthouse writes: “Currently you cannot accept more than 684 pledges for your project. [—] A future version of Lighthouse could optimize its usage of transaction space to bump up the maximum number of pledges by another few hundred. [—] This doesn’t have to be a big problem – Lighthouse is best used conservatively. BURST, however, has no limitations like this, is completely decentralized and can, therefore, handle as many pledges as required for funding a case. The crowdfunding feature doesn’t need to be used conservatively due to technological constraints. That being said, Lighthouse is certainly a step in the correct direction. However, with decentralization, no people involved in decision-making and without Kickstarter’s fees, BURST shares all these features but, in addition, is neither in beta mode nor restricted as ‘Lighthouse’.

What is BURST ?

One of BURST’s most important big innovations is being the world’s first Proof of Capacity (POC) coin. This means that you mine the coin with your hard drive space. In comparison with Proof of Stake (with known security problems) and the energy-consuming-beast Proof of Work, POC has many (green) advantages. Another major characteristic of BURST is Smart Contracts, mentioned in 1990 by Nick Szabo. But if you want to find more general details about BURST? Then check our article about them : https://cryptobuzzing.com/burst-coin-proof-of-capacity-smart-contracts/

About Author

Full Name : Razvan Gabriel Paun , Owner of 24/7 Crypto News . Cryptoenthusiast , Bitcoin Fanatic . If you want to contact regarding any information you can email : office (at) cryptobuzzing.com . An active member of the Cryptocurrency Community, and enjoys collecting, trading, and writing about various coins & Bitcoin latest news .

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