The boom of cryptocurrencies and ICOs has seen the foundation of the financial world change in many facets.
With the blockchain, what was impossible before is now made a possibility, with things like smart contracts finally making contracts trustable as well as the blockchain making transactions safer than it ever was.
At the same time, the investments world has also felt the effect of the blockchain technology; asset tokenization has allowed previously illiquid assets to be traded easily.
Unlike traditional investment opportunities, the blockchain has enabled investments with low commission fees as well as removing intermediaries and tedious paperwork involved in past times.
All of these benefits have caused a significant rise in the demand for crypto investments and fund management, aided by the fact that the sector is becoming more and more regulated.
Despite the regulations and improvements, there are still obstacles in place that prevent the industry from truly flourishing as the industry is still in its infancy.
Nousplatform is a decentralized platform that provides escrow, technical and legal services to investment funds managed on the blockchain, also known as decentralized investment funds.
The inner workings of the platform are incredibly simple; profitable and reputable funds are listed on Nousplatform according to a rating system.
These funds can then be invested in by all Nousplatform users without the constraints of the traditional investing system.
In terms of how the technology works, many of Nousplatform’s core modules are powered by smart contracts which leave no room for scams or fraud by fund managers.
At the same time, the blockchain provides 100% transparency which means investors have maximum trust and security in investing in funds on Nousplatform.
One of the actions supported by smart contracts are transactions; on the platform, smart contracts regulate and control the movement of equity shares with the use of Nous Tokens, the platform’s official utility token.
For fund owners, they don’t have to worry about the complexities behind it as smart contracts are automatically created and executed for each new fund registered on Nousplatform.
There are two types of elements in Nousplatform’s smart contracts: constants and variables (things that can be changed according to the situation).
Things like the creation date of the fund and the initial capital are constants which mean that they cannot be changed or edited at any time when the smart contract is active.
The parameters of the investment maturity timeframe as well as the assignment of managers are two examples of variables.
Although the ability to change things may leave vulnerabilities, Nousplatform prevents the possibility of that from happening by implementing several security features.
For starters, parameters can only be changed by using private keys which are only available to the smart contract’s publisher.
Changes made are only applicable to new investors as retroactive changes are not possible with smart contracts. This is a good thing as fairness is maintained for all parties and fund managers don’t have the ability to manipulate contracts for their own benefits.
The Nous smart contract uses several features such as the verification of assets ownership, secure records of the investment portfolio, as well as the identification of fund managers, among a suite of security measures.
The Nousprotocol allows the automatic creation of investment funds to manage blockchain assets on the platform.
All investment funds within the platform come with a full set of advanced tools for portfolio management which again, is completely transparent to investors.
Nous tokens are used to fund all transactions related to equity shares of aforementioned funds.
There are multiple types of funds on the platform with two of them being open-ended funds and close-ended funds.
Open-ended funds have the ability to redeem the fund’s equity shares from investors with Nous tokens held in the portfolio’s reserve funds. With this, funds have the advantage of not needing to sell their equity shares to pay their investors.
Close-ended funds, on the other hand, can trade their ETF index on any cryptocurrency exchange; they also have the ability to hold ICOs for their fundraising efforts in Nousplatform.
As mentioned earlier, there are literally no limits to an investor interested in equity shares as with the Nous tokens, transactions can be done anywhere, anytime.
At the same time, investors are not limited in choices as they have the freedom to select multiple portfolios for diversification and risk management.
In the case that an investor wants to liquidate his or her shares, the investor will be given Nous tokens equivalent to the current rate at the time of the transaction.
The biggest benefit of Nousplatform is perhaps the sheer level of transparency available to investors.
As mentioned earlier, investors can invest safely as all statistics and data related to a portfolio are provided to investors without any filters or hidden data to hide its flaws or weaknesses—all data is transparent in Nousplatform.
For instance, advanced statistics are available for review for investors and developers don’t miss out on this as well as all smart contracts are open source in Nousplatform, with their codes made public for reviews and analysis.
Data of funds are presented based on periodic snapshots that detail the fund’s profitability and performance.
At the same time, things like the redemption and acquisition of assets, portfolio modifications, the liquidity index, as well as data related to the fund’s financial activities are all accessible to the public which is a far cry compared to the traditional investment system.
Besides the features mentioned above, Nousplatform users can expect:
- Ease of use
- Easy diversification of investments
- Deposit and withdraw funds quickly without limits
- No bureaucracy at anytime on the platform
- Set rules of participation for all the parties involved
- No minimum amount entry requirements
Merchant services are also on the platform’s roadmap; this will allow investors to pay for goods and services using equity shares, making it even more convenient for Nousplatform’s users.
Nousplatform will launch a token sale for the NST token, with the pre-sale currently live.
The pre-sale will have an exchange rate of 1 ETH = 8,000 NOUS which is significantly more than what the official ICO’s (launching in Q1 2018) exchange rate will be.
Token name: NST
Token base: Ethereum (ERC-20)
Token supply: 777,000,000 (may vary depending on ICO outcome)
Token sale duration: 30th November, 2017 – 25th December, 2017 (pre-sale) | Q1 2018 (ICO)
Token sale target: 85,000 ETH (hard cap)
Token exchange rate: 1 ETH = 8,000 NOUS (pre-sale) | 1 ETH = 6,400-7,000 NOUS (tiered bonus system)