The joint-stock companies are divided into "listed companies" and "unlisted joint-stock companies". The shares of a listed company are registered with the China Securities Depository and Clearing Corporation (CSDC), and therefore the issuance of shares or the trading of shares is regulated by the CSRC. Here we will not expand to explain; while the shares issued by unlisted companies do not need to be registered by any organization, and can rely entirely on their own stock issuance and maintenance of the register of shareholders to confirm their rights. Of course, many of them are registered through third-party institutions such as the industry and commerce department or the China Securities Depository and Clearing Corporation (CSDC), and use local share depository centers to provide third-party registration services for public disclosure. Moreover, when there is a change in the shareholding of a company, it is necessary to manually process the paper share certificates, option issuance and convertible notes, which will make the maintenance of the shareholders' register very complicated and cumbersome, and the transaction tracking and maintenance will become more difficult as more and more transactions are made.
Crowdfunding of equity using Techshares blockchain technology solves all these problems perfectly, as the blockchain ledger is secure, transparent and tamper-proof, and can be easily tracked to keep track of the company's shareholding and its history of changes.
Convenience of Equity Transfer Circulation
For equity crowdfunding, equity circulation is an important part of the business, which can stimulate user activity and prompt more registered offerings. Traditional OTC over-the-counter (OTC) equity trading, which is based on the credit of the trading parties and the credit risk borne by the trading parties themselves, requires the establishment of bilateral credit before trading, while the trading platform centrally bears the credit risk of market traders.
Techshares blockchain technology can reduce the credit risk of the transaction, it is in essence to provide the credibility of the third party to a more complete decentralization, that is, no longer confined to a specific third party subject, but by the participants of the whole to *** with the maintenance of a set of registration system. From the point of view of the realized function, blockchain on the one hand will record the right to the company itself, reflecting the spirit of self-governance; on the other hand, it can also ensure the openness, transparency and authenticity of the information record, so as to minimize the dispute over the right. The ownership of the equity is registered in the blockchain, and the equity transaction must be signed by the owner's private key in order to be verified; after the transaction is confirmed, the change of the equity will also be recorded in the blockchain, so as to protect the interests of both parties to the transaction.
How to protect the security
As an investor, the most worrying issue is the security of funds, traditional equity crowdfunding, there is often the possibility of "double spend" problem (Note: double spend - double spend, that is, only a share of repeated transfers to two people), the traditional equity crowdfunding, there is often the possibility of "double spend" problem (Note: double spend - double spend, that is, only a share of repeated transfers to two people). Until electronic data after the full central clearing agency to ensure that the entire system can be traded after the accounts rolled over. But it is the platform that often bears the risk, and the equity crowdfunding business, unlike traditional over-the-counter trading, is conducted separately by a number of companies operating independently of each other, so that these trading activities are dispersed across platforms. And with Techshares blockchain, a technology, the decentralized trust built by the blockchain, which is not shifted by human will, can guarantee the normal operation of the system and business without mutual trust in each other. Everyone becomes a node in the blockchain with their own public and private keys,**** with the same participation in rapid transaction verification and bookkeeping. Furthermore, at the initial stage of the equity crowdfunding launch, a crowdfunding contract is signed by the initiator, the crowdfunding platform, the lead investor, the sponsor, and many other parties*** together to agree on their respective responsibilities and obligations. This contract can be turned into the form of a smart contract deposited in the blockchain, and the blockchain ensures that the contract shall not be tampered with in its fulfillment. In this way, there is even less need to worry about safe spaces.
Expansive, sensible and legal
Blockchain equity crowdfunding consists of a three-layer structure Tengda, the bottom layer is the blockchain network, from which a decentralized trust distributed ledger is built; the middle layer is the combination of the business logic and the blockchain, *** with the establishment of the account center, equity registration, equity vouchers, equity trading, equity management and other functions; the uppermost layer is the customer-oriented business of crowdfunding platform, and the business of the platform is theoretically unlimited to extend to various fields and various industries.
And the use of TechShares' blockchain technology, through the construction of P2P self-organizing network, time-ordered and tamper-proof cryptographic ledger, distributed *** knowledge mechanism, so as to achieve decentralized trust (Decentralizedtrust). Coupled with the fact that nowadays neither the Company Law, the Regulations on Administration of Company Registration nor other laws and regulations impose any specific restrictions on the presentation of the register of shareholders maintained by the company itself. A company may choose to create and maintain a register of shareholders in any form of documented record and is not limited to a particular vehicle. Therefore, the use of TechShares as a vehicle for equity crowdfunding on the blockchain is entirely legal and legitimate, and once voluntarily chosen by a company, can provide legally valid proof of the company's equity (shares).