IOTA Wants to Boost Tangle Projects, Plans for Smart Contract Creation to Crowdfund Platforms
IOTA Plans To Create Smart Contracts To Help Crowdfund Projects Using The Tangle
IOTA has been attempting to figure out how to fund projects that want to build on the tangle network, and now has come up with a plan to create smart contracts that will enable this. The project’s team has proposed the unique way avoid tokenizing the process, so that the IOTA native token can still remain as the basis of the crowdfunding.
IOTA’s TomTom talked briefly about the new initiative in a recent blog post, identifying the need to Crowdfund projects that aim to use the tangle network. He said that:
“As the technology evolves it has become apparent that it can be used for a large number of other things as well. With the IOTA Foundation funding some types of projects, we saw the need for an alternative funding option for the many projects which are expected to be built on top of the Tangle (IOTA).”
With the 2017/2018 ICO frenzy tarnishing crowdfunding process, IOTA team is looking to come up with a hybrid between ICO and kick-starter, calling it the IOTA-ISO. The platform’s native token, IOTA, will fuel the entire process. According to TomTom:
“The people and companies who wish to utilize our funding platform will commit to build systems and services using the IOTA technology, and using the native IOTA token as ‘fuel’ for their future services or other functions where there is a need for a value token in the system… We suggest that the funders only use IOTA tokens for the funding as this secures this system and we can control the release of funds… The early funders buy a future service by participating in the funding rounds and they are entitled to receive services or other IOTA based products when the systems start to make money.”
Use Of Smart Contracts
In the blog post, TomTom goes ahead to explain the project will be controlled by smart contracts, noting that project’s participants and owners will need to first create IOTA wallets, where they can transact the IOTA token.
When it comes to smart contracts configuration, TomTom explained:
“We are able to set up a smart contract like system where these receipts are only sent from one wallet to another when an agreed amount of IOTA tokens is received as payment. We would not be part of such transactions whatsoever, only facilitating for this secure transaction and taking a small fee for facilitating with our technology.”