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DES – Develop a reliable mechanism of protection the investments at the crypto-investment market
Friday, January 26th, 2018
Decentralized Escrow Service or just DES continues to develop. We have thoroughly worked over redesign of the project, updated White Paper, have improved the website and have made other changes according to responses of experts and our investors. The updated Descrow and its team is ready to new fulfillments at scam struggle.
DES is one of the first projects which has aimed to develop a reliable mechanism of protection the investments at the crypto-investment market.
Speaking simpler, DES works at creation of a clear, convenient and at the same time effective scam-filter for both ICO market, and for the whole segment of crowd-investment (including a crowdinvesting and crowd funding).
Descrow is going to introduce at the own platform the concept of decentralized escrow for crypto — investments, to save money from roguish startups.
DES allows, by majority voting, to determine the further financing of the project, which previously distributed the stages of receiving tranches for the idea implementation.
As we understand, it is impossible instantly to write a program code, create a working model and a profitable business, the stages of its implementation are divided in time and take at least six months, or even more.
Therefore, creation of Roadmap and phased financing is normal and realistic practice, without its presence, it is possible to question the project viability and Startup desire to spend raising funds as per its intended purpose.
Each stage of the project includes the necessary work, which Startup undertakes to perform by the certain date and provide them to the investors’ court for the next financing round.
DES consists of voting mechanism, where the decision is made by the majority (more than 51%) of direct campaign participants, project investors according to the number of shareholding. There are more feature how DES helping Crypto community.
This is the main reason why we need Decentralize Escrow
DES platform contains qualitative criteria of risk management and assessment, that allows attracting solid investments. Decentralized Escrow, as a tool, is directly integrated into the process of attracting, saving and distributing investment funds. Also, DES will be protecting investors money from not promising ICOs.
If investors are happy with this project which is integrated with DES than DES will funding this project also The commission for using DES arises only in case of next tranche transfer is sent to Startup. Transaction fees decrease according to the progressive scale in direct correlation with a tranche amount.
Thus, it doesn’t impose unnecessary expenses for Startup, which can increase the cost of work, and the investor does not bear any additional costs at all.
DES goals are to increase the investment market transparency, implement best practices in other ICO-platforms, expand DES presence in the crowd sale industry, secure stable demand and increase in DES token rate. And finally, we can say, DES will store investors money into a safe place.
Do escrow services ensure security of the investments?
Unfortunately, no. Of course the described above mechanism increases the probability of making a successful investment, but the risk of scam remains. Human factor in the forms of collusion, mistake or negligence can occur.To avoid negative consequences of these unpleasant occurrences, the particular attention should be paid in the process of choosing an escrow agent.
Capture and shutting down the darknet market Silk Road in October 2013 resulted in the loss of $ 3.6 million dollars stored on the escrow service on the web page serves as a classical example of the centralized escrow problem. It has a technical vulnerability, point of failure in the traditional escrow model.
Why will the company/product succeed?
DES project completely eliminates the third-party (escrow agent) problem with the help of blockchain and smart-contracts. For the first time, investors can be insured against 100% losses and fraudulent ico-projects. DES platform provides investors with the opportunity to participate in the life of the project they trusted their money.
If the majority of token holders decide that the project does not fulfill its obligations, they can vote to stop further financing and save part of their funds.
This is better than loosing all, in case a startup decides to make off with the money, isn’t it? This instrument is beneficial for startups too.
Implementation of a decentralized escrow mechanism in the ICO-campaign will level up confidence and loyalty from the side of the investors.
DES expands possibilities for investors
It is also possible to note one more plus of DES. Decentralized escrow bears mutual benefits. Investors obtain guarantees, shortage of which is so tangible at the crypto — investments market. Besides, startup teams, except attraction of the necessary means, also strengthen their image as the project which is confident in its forces and isn’t afraid to undertake obligations.
In fact, DES has managed to offer the most effective mechanism of closing the “Achilles’ heel” of the crypto-investment market in a question of reduction the investment risks.
Perspectives of DES on Asian Market
Asian Market is one of the biggest markets in the world comprising of 50+ states and more than half of the world’s population. Asian Market is already proving its capabilities of becoming the biggest Cryptocurrency market and if capitalized correctly, Asian Market has the potential to play a major role for the success of any Blockchain Projects.
Although countries like China has already put a ban on ICO projects, they did it because of fraudulent and unscrupulous projects who scammed people into giving a lot of money.
DES can solve this issue since DES has the right tools to help people determine the true nature of a project before investing their valuable money and enables them to decide where and how their money will be spent in the project.
If DES can be promoted largely on Asian Markets, the numbers of fraudulent and unscrupulous projects will simmer down since people will be able to detect who is who and will not put their money into those scams anymore.
In general DES will help to restore cryptocurrencies capital market and crowdfunding sphere. — It will not allow to grow in number of unscrupulous projects, using for their greedy purposes: on the one hand, ?nancial illiteracy of the population, lack of in-depth blockchain technology knowledge; and, on the other hand, growing in geometric progression interest to the crypto industry, where, in most cases, an ordinary investor neglects basic security and accepts in faith some pseudo — experts’ statements.
Gibraltar establishes the legal regulation for the ICOs
In the coming year, the Gibraltar enters Regulatory framework for the blockchain technology. This means that the ICOs are now officially regulated in this jurisdiction.
The Gibraltar Financial Services Commission announced its intentions upon the ICOs regulating in October 2017. With the initiation of the new system on the first of January, it is now the first jurisdiction in the world to do so.
Nicky Gomez, head of risk and innovation at the GFSC, said: “We are really excited to finally welcome applications from DLT Providers. The team expect to be very busy in the coming months, and are looking forward to working on some interesting and innovative ideas with applicants.”
With the common world`s concerns upon the ICOs risks, coupled with the desire to limit and prohibit this method of crowdfunding, the financial authorities of Gibraltar approach can be considered unique.
As we wrote earlier, at the end of last year Belarus have suddenly joined the ICOs friendly countries list: for the next three years, a kind of carte Blanche to run the initial proposals of the coins will be established here.
However, Gibraltar was the first jurisdiction to launch a clear legal framework for the ICOs, and this year they are coming into force.