ICO Vs DAICO: What Is The Difference Between The Two?

ICO Vs DAICO: What Is The Difference Between The Two?

There have been several developments in blockchain technology. Individuals are now expanding their knowledge horizons with Blockchain training and becoming cryptocurrency advisors; a good salary and better returns are the two prospects that are driving many people towards these concepts. ICOs has been the hot favourite for startups and other companies who want to venture into Blockchain technology and promote its use. Blockchain professionals and cryptocurrency expert advisors work at the backend to create an ICO that helps the companies to raise funds. In this blog, we will be highlighting ICO and why there is so much emphasis on DACIO nowadays.

What is ICO?

ICO or Initial Coin Offering is a website that is used to raise funds. You can consider it to be like a crowdfunding activity. It is the first funding strategy for the crypt industry and a successful one. ICO works as a token sale platform for the newly released tokens.

Despite witnessing a huge success, ICO is now facing the issue of scams. There have several incidences where the entire ICO scheme was ponzy, thus looting the investors and business people. The prime reason for such activities was the lack of a security system and improper monitoring. Hence ICO markets are witnessing a downfall for the past few years.

The role of DACIO

To overcome the hurdles of ICO, Vitalik Buterin recommended a new way to invest in this segment, and that was using a Decentralized platform. The idea was to improve the conventional ICO mechanism, and we now have decentralized ICO or what we popularly know as DAICO.

What is Decentralized Autonomous Initial Coin Offering or DAICO?

It helps the companies effectively raise funds. It brings together the benefit of decentralization and ICO, thus making the entire system far more secure. It works on peer-to-peer interaction and imposes a stringent management rule for ICO projects that eventually prevent any risk for the investor.

This platform allows the token issuer to vote in case one feels that the project is progressing in the manner it should, then the token issuer can raise a vote against it. It also allows the investor to fund Blockchain projects for a specific time, also known as contribution time. When this time is over, the investor can gain back control of their funds easily. All the business built on DACIO is encoded on smart contractors, allowing better governance of the entire system and guarantees hassle-free execution.

DAICO

ICO

It is a mix of Decentralized Autonomous Organizations and ICOs. Here the developer pitches the project to the investor

In this case, the developer pitches the project to the investor.

Only a portion of the fund goes to the developer

The entire fund goes to the developer

It offers a controlled flow of funds

There is no such control

Better security and the investors can pull back their support in case they feel the project development is not going in the right phase

No such provision exists in ICO, thus making them vulnerable to scams

Concluding thoughts

This was the basic line of difference between ICO and DAICO. Suppose you are also willing to explore in-depth information about ICOs and DAICOs. In that case, this is time to enroll for the Blockchain certification program and cryptocurrency certification program by the Blockchain Council. This comprehensive learning program will adept with all the knowledge and skills to make you a Blockchain expert and cryptocurrency expert professional.