Venture company Sequoia India conducted a $ 3 million start-up round to launch the Blockchain Band Protocol, which encourages reliable content producers with awards and bids.
Unveiling this news on Tuesday, a Thai startup said that other investors participating in the round included Dunamu & Partners (venture division of the South Korean crypto exchange operator Upbit) and the early investment firm SeaX. A Sequoia India spokesperson confirmed to CoinDesk that he led the funding.
Founded in 2017, Band Protocol offers a platform that allows users to create communities with tokens, which provides, as they say, monetization and management of the platform. Initial investment will accelerate product development and help develop a firm’s market strategy.
According to the website, the token “group” is used as an economic incentive, using the “wisdom of the crowd” to create a reliable knowledge base for the community. Data curators must map a token that promotes honesty, the startup says, while “bad actors are punished.”
“Active users and content creators are rightly rewarded for their input and retain the strength they deserve as the owner of the data. This provides potential monetization and management of online communities, ”explained the company.
The goal of the startup is to “unite the digital communities in the network, creating a platform with blockchain support for transparent and reliable data”.
According to the firm, the product also has “clear applications” for credit bureaus and fraud, identity and identity verification firms, as well as websites offering online forums.
To speed up user adoption, Band Protocol stated that it is also studying a number of scaling decisions on Ethereum, as well as Tendermint, a draft consensus on the blockchain.