Everyone has likely already experienced it: something is about to happen and you need to gather funds. This could be to raise money for a startup, a charity, an investment or even to buy a birthday present with a group of friends.
The problem in this situation is that you have to trust a single centralized identity to manage your pool of money and as soon as you gave your share, you also gave up control over your funds.
Your money may be moved through the hands of several people and they will decide the fate of it. Although your money will theoretically remain yours, the central identity controlling the funds will ultimately decide their use.
Traditional ways of collecting money with a group of people involve a lot of risk and everyone must trust each other.
A fully-decentralized pooling solution ensures that people or organizations can raise money and put it into a pool, where the pool is managed by predefined rules (via an open source smart contract) instead of a single person or third party organization.
Thanks to the use of rules in a smart contract the pooling becomes decentralized and no middleman is needed. This also reduces security risks since the smart contract can be read by anyone and it will watch over the fact that all conditions are met before the pooled funds can be used by the pool manager.
As long as the rules in the pool’s smart contract aren’t met, you stay in full control of your own funds.
The first solution to create pools and collect funds on the VeChainThor Network.