Decentralized escrow is a new concept in the blockchain space, which describes a means of control over the invested funds. The involvement of escrow agents or companies, as a guarantee of liability, turns out to be an insufficient measure, due to the human factor that discredits the security of independent, distributed system. Meanwhile, the decentralized way of regulating ICO campaigns could turn out to be the best solution for regulating processes in a distributed market.
[Note: This is a press release.]
The platform for ICO investments, DES, founded by the head of Russian Blockchain Association Sergey Besedin, includes an inbuilt instrument for decentralized escrow. This tool allows investors to control the distribution and use of invested funds in a decentralized manner, via general voting. DES will be first in the world project to guarantee the independence of escrow and the only decentralized solution for the transparent and fair use of funds, once the crowdsale is over.
Within the DES framework, investors of the particular startup decide whether to initiate the next step of financing or not, considering the previous performance of the project. This procedure will eliminate the fraudulent companies that do not plan to develop a finished product and bring to light those that are ready to meet the stated obligations.
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 with 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, which is better than losing all, in case a startup decides to make off with the money.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.
The main mission of blockchain is to get rid of intermediaries in agreements between people, where a trusted third party is required. The DES project completely eliminates the third party (escrow agent) problem with the help of blockchain and smart-contract and helps to revitalize the ICO-market.
Decentralized space requires decentralized methods of regulation and project DES is going to provide it. Right now the project is holding its pre-ICO campaign in order to collect funds for further development and extension of its services globally. Early investors are welcome to take part in the DES pre-ICO with special bonuses provided until the end of September.
Images courtesy of DES