ICO Token Model Coming to the Bitcoin Blockchain with SideChain Technolology via RSK
ICOs Can Now Be Launched On The Bitcoin Network With SideChain Technology
Since 2013, developers have been working on the concept of fundraising on the Bitcoin network. J.R. Willett, who claims to have come up with the idea, was able to launch an ICO for the Mastercoin project on the Bitcoin network and raised $500,000 in the process. Over the past two years, RSK has been working on its Turing-complete smart contract sidechain for Bitcoin. The sidechain would make it possible to launch ICOs on the Bitcoin network, and meaningfully improve crowdfunding.
Temco, a South Korea-based blockchain startup will be the first ICO to launch on the smart contract sidechain. The company, which is looking to enter the supply chain management sector, will leverage RSK’s technology to launch an ICO which the company hopes will raise $19 million.
Temco will issue tokens that will primarily be used to enable small and medium-sized businesses to track their products via its supply chain. The token would be used by both the vendors and the consumers and can be used to pay for products, data storage, and subscribing to business intelligence tools.
In addition, consumers will be awarded points – later converted into these tokens – for general participation, such as tracking their purchases from data stored on the blockchain and reviewing these purchases to ensure product quality, in the ecosystem. This blockchain architecture is an important tool for SMEs that can offer “better insight, a better operating system [and] better planning” at minimal overhead costs to vendors without a pre-established infrastructure to monitor product movements.
The public sale of the token is planned to commence in November and the organizers said they will accept both Bitcoin and Ether as a means of payment. The token sale would be available for users all over the globe with the exception of China and the US.
Even though Bitcoin ICOs would be similar to those launched on Ethereum, several notable differences are intended to improve on Ethereum’s implementation and support of the projects. Unlike Ethereum, launching ICOs on the Bitcoin network could sustain the creation of real products thus leading to mass adoption.
Currently, the RSK sidechain is still in development. Having launched the beta version in January, the platform is currently only accessible to a select group of developers, business partners, and bitcoin miners. And it's currently run by a collective group of blockchain companies, dubbed the “federation,” who oversee the value being moved on- and off-chain.
But there are plans not only to open up the sidechain to anyone and everyone but also to decentralize the federation somewhat.