Over the last few years, a new alternative to IPOs has emerged, which allows organizations to provide value to the marketplace. The ICO is set to revolutionize business as we know it, but at the same time, there are those who would like to take advantage of Blockchain technology for malicious purposes. Therefore, protecting ICO data is essential.
To understand ICO data protection, it is first essential to understand Initial Coin Offerings, how things can go wrong, and how data security measures can be used to prevent them. ICOs are an unregulated method that is used by startup companies and entrepreneurs to generate capital for a project, usually one which is software related. It was devised due to the challenges and regulations which are associated with acquiring funds through traditional channels such as venture capitalists or banks.
And while ICOs are highly effective and show tremendous promise for numerous applications, there are vulnerabilities which can be exploited by unscrupulous parties if adequate security measures are not enforced. ICOs give startups the ability to issue tokens for recently released cryptocurrencies, which investors have the option of purchasing through traditional tender or Bitcoin. If the project is successful, the investors can expect their tokens to grow in value accordingly. However, due to their digital nature, there are cyber criminals who will take advantage of ICOs in any way they can.
ICO data protection encompasses both legal and technical countermeasures which are designed to protect the data associated with a project along with the capital that investors raise for it. The majority of ICOs is currently performed without regulations and involves future direct sales for a company. Scammers could take advantage of such an environment by operating “pump and dump” schemes, which would produce profits up front but provide nothing to investors, leading to costly litigation or criminal charges.
The same outcome is likely if a cyber-criminal gains access to ICO data. The benefit of ICO data protection is that it secures the data against loss or compromise while ensuring that investors do not lose the hard earned capital they invested. Effective ICO security involves both robust cryptography as well as escrow procedures which are designed to ensure that the project is carried out to completion, and if not, the investors would have their funds returned to them.
At Blockchain Developers our goal is to use ICO data protection to assist startups and entrepreneurs regarding the legal and technical aspects of securing their ICOs against digital breaches or theft, as well as any schemes which are designed to rob investors of their funds. The solutions that we provide are applicable across borders and our team will help you launch an Initial Coin Offering that is completely legitimate. Blockchain offers many opportunities for growth and profitability, but only when best practices are observed regarding security and data protection. Contact us to learn more about our services.