Frequently Asked Question

A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically.

Originally developed as the accounting method for the virtual currency Bitcoin, blockchains – which use what's known as distributed ledger technology (DLT) – are appearing in a variety of commercial applications today.
ICO stands for “Initial Coin Offering” and it is a means of raising capital through a crowdfunding campaign with the use of crypto-assets as investment. A digital asset, the coin or the token, is issued for a purpose and are sold to raise money for the said purpose. After the ICO process is done, the coins are traded on crypto-exchanges and market supply and demand decides on their fair pricing.
A token is a digital asset that is sold to the public during an ICO campaign, usually for other popular cryptocurrencies, namely BTC or ETH, or sometimes directly for fiat currency. Unlike a cryptocurrency, tokens usually do not have their own blockchain, but rather are hosted on another blockchain, such as Ethereum’s.

Once an ICO campaign is complete, the token developers can release the tokens on an exchange, where they can be traded and fluctuate in value, like any other cryptocurrency. Tokens can also have other functions that are particular to the product that issued them. However, tokens themselves do not necessarily give rights or equity to the product/company that originally issued them -- in that sense tokens are definitively not equal to shares in a traditionally structured company.
The concept of initial coin offering emerged due to Blockchain technology. Actually, ICO initial coin offering is a model to raise the funds for Blockchain based projects. Its process is simple, Blockchain developers found an innovative idea and they suggest it to the community. Once the project gets approved, they prepare a white paper, where they include the scope of the project, its vision, and all technical aspects. After white paper, to reach a maximum number of investors marketing campaign begins. During the marketing campaign, they elaborate all features and benefits of the project. ICO date is unveiled when the token sale is scheduled to begin. There is usually a defined time period to raise the required funds, after which the sale closes. Investors then start receiving their tokens and plans are made for them to go live on exchanges for trading.
A White Paper is a technical document, which is drawn in a free format by the ICO team. Generally, this document offers a complete description for the project: its concept and advantages as compared to similar projects, team and roadmap.
An escrow is a special intermediary account, located between investors and ICO team. It assures the return of investments, if the fundraising campaign fails to complete as planned. An escrow account is always backed by a guarantor, an escrow agent, who keeps track of cash flows. However, parties can also use an automated escrow facility, i.e. the software code, which is used to execute such functions.

CAN'T FIND ANSWER? ASK US.

Get More Traffic and Sales
with our Services!

The List of Official Partners

NCryptBit is officially partnered with 500+ Portals for Content Distribution, Press Release Distribution and ICO Listing Services. Get connected.