When was the last time you donated money to some charity and patted yourself on the back, thinking that your $10 has done an outstanding job? But it probably never did. And when was the last time you looked at the crowdfunding market without lamenting what it has become?
Crowdfunding is not what it used to be. Not too many people stop to think as to why there is so much misery in this world when there is an $800 billion charity market alone, and rampancy in the crowdfunding market when there are ways of solving its main problems. The reasons for the ongoing stagnation are simple – because the money being spent on charity is not being tracked adequately, leaving people hoping that likes on Facebook will feed the poor in Africa, and the crowdfunding market simply lacks sustainable development and proper accountability.
The cornerstone of many responsible and noble projects these days is the crowdfunding market. And the truth is that it needs a good revamp. In reality, it really needs a stable and sustainable solution, or a platform, that would allow projects to raise funds responsibly and the donors to see the results of their donations through transparency and accountability on the part of the projects they are willing to help. There are very few alternatives at the moment, but the recent wave of blockchain innovations that has swept the world gave hope for some solutions. The immutability and vast infrastructure buildup potential that blockchain offers gave rise to some projects, like W12, associated with the charity market, which are offering a platform that would act as an infrastructure for thousands of projects to have their causes placed on it under the watchful eyes of a diligent goal and fund tracking system.
The Essence of It All
Certainly, having a good platform that would host organizations and give them the tools they need to operate is good. But what’s more important is garnering the trust of the audience. Unlike centralized platforms, organizations and banks that have plenty of loopholes to misspend funds, blockchain automatically does away with intermediaries, commissions and other challenges that impede the uninterrupted and uninhibited transfer of funds. That alone buys trust, but W12 has gone a step further in its strive to lend a helping hand to projects by creating its own technological mainframe based on one of the most detailed roadmaps out there. And that creates room for thinking that W12 is actually working on a platform for a completely new generation of crowdfunding.
One might ask how W12 seeks to buy the trust of users and attract them to the projects placed on its platform. More on that a bit later, but the basis is solid as it is founded on the one thing all projects are dependent on and the one thing they will fulfill their promises for – the money.
The W12 protocol consists of templates for smart contracts and a network of oracles, which monitor the implementation of roadmap phases of projects placed on the platform, as that is the only way the project will receive the money it manages to raise through crowdfunding. As the star-studded project team with advisors from top-end companies claims, the technology employed by W12 reduces risks, eliminates the need for intermediaries, reduces costs, protects against scams, and improves transparency on the Charity, ICO, STO, Crowdfunding and other markets.
The project has a sound business model as W12 charges a commission for transactions of users of the protocol through the use of its ERC20 W12 Token. The more W12 Tokens are used in transactions, the lower the commission. In addition, the built-in exchange and wallets allow projects placed on the platform to distribute their tokens to the holders of various accounts of ecosystem users. The model is quite reminiscent of a grading scale with premium account holders having the ability to receive the tokens of hundreds of projects for their contributions.
Applications in Our World
By their very nature, projects seek to fulfill goals, and crowdfunding is their way of doing that. But the rather vague guarantees that users had sought in an attempt at distancing themselves from scams have dwindled and led to a sag in the crowdfunding market. That leads to the logical conclusion that the problem is not even in the projects themselves, but in the basis acting as their infrastructure, namely – the crowdfunding market itself. If a structure that were to be rebuilt and projects would be able to raise funds, then a lot of markets would receive a much needed boost, the charity market, for example.
We all want to see the impact our donations have on lives out there, but 96% of projects never reach any of the key milestones they promise to. Since more than 50% of charity funds do not reach the recipients, hundreds of billions of funds are lost. By relying on the W12 protocol, as the project team claims, each participant will be able to monitor and control the funds, as well as assess the impact of the contribution in the case of charity projects, for instance.. It really does look like one of the few real cases of applying smart contracts and blockchain technologies in life with positive influence.
If trust could ever be guaranteed, then the only way of doing so would be by making sure that the money donated to projects would either be spent on the intended purposes or returned to the donors. Apparently, W12 has taken that into consideration as well, since it promises to return the funds in case a project fails at any stage of its development.
This approach applies to any of the projects placed on the platform as the only way they will receive the funds is by fulfilling their promises and actually doing something, whether that be making a product, delivering services, or changing the world for the better.
The Yays and Nays
Many speak of achievements and hype as the key success points for a project in the blockchain industry. But, reality says otherwise. If a project does not have a real, working product with applications in the real world, then it is waste even reading about it. The W12 project has a working blockchain of its own and a product that can already be tested in demo mode with test tokens. The team also promises mobile apps that would allow donors to track their donations in real time and get feedback from the people their money actually helped, like messages and emails with gratitude as an added human touch. They have also built the internal marketplace, and the PRODUCT, their code is solid, and they have already managed to sign up several dozen projects that are ready to start selling their tokens on the platform.
Popularity is important too, so W12 has built up 20 active international communities with more than 90,000 participants and has received about 200 reviews in a number of languages, most of which are positive. W12 project has also gained recognition, as it claimed first place and best ICO project at the World Blockchain Forum in New York, it was the Finalist of Icorace in Switzerland after being selected by a jury from 140 ICO projects, and W12 was noted by Silicon Valley experts at the Blockchain Economic Forum in San Francisco.
Still, transparency is key in building trust, something that is provided by blockchain and reinforced by the fact that W12 assures its donors that their funds can be returned in case of project failure, which means it would be unprofitable for a scam to stick their nose onto the platform and waste time and money to end up with nothing. The other fact that helps build trust in W12 is that it hands out the money to projects for actually proven achievements that are verified by a network of oracles.
But it’s not all sugar and spice and everything nice, because W12 has a number of competitors like Philator and Giveth.io, both of which have their own rather similar offerings. Though it is true that W12 has considerable advantages over many projects, such as a more meaty set of features, the fact remains that there is still a long way to go before the necessary popularity and trust base actually start yielding benefits.
Another point of note that cast some hint of a shadow on the project is the unproven concept of its work and the promises of claiming a significant portion of the market in 5-6 years with its solution. Such claims may seem speculative, but that is what most of the crypto market hinges on anyway.
Without a comprehensive economy, no project is worth its salt. And W12 is Salt Lake City when it comes to that as its W12 Tokens allow users to buy the tokens of any project placed on the W12 platform. The W12 Token will be used as fuel in a decentralized network of oracles. Customers will need a W12 token to encourage Oracles, while the Oracles will need W12 tokens to confirm the execution of digital contracts and receive rewards from the network.
Given the freeze periods and opportunity of getting the tokens of dozens of projects on the platform is a considerable boost in attractiveness for W12 Tokens as long-term portfolio additions. And though the price of ETH is now at a disappointing low, W12 only wins from that as its token prices are fixed, meaning it is now possible to buy twice as many W12 Tokens than it was when ETH was its best.
With its desire to create a sustainable and well-controlled crowdfunding platform of the future, aiming to encompass the $800 billion charity market alone, its technology operational and many partnerships underway, W12 seems to be one of the best options as a long term portfolio addition. It is also a purely human means of helping the world by helping the projects that want to make it a better place through the development of their products and services.