Topic: [BOUNTY]CRWD Network - BOUNTY Program CRWD Token [BOUNTY] - page 8. (Read 5825 times)

Investor Key & the CRWD Network

By Daniel Pichler
July 17, 2018
CRWD Network



CRWD Network - investor key contracts

Your investor key is your unique ID verification on the Ethereum blockchain. Its main control key, the management key, is tied to your identity and is your key to hold and trade asset tokens on the CRWD Network.

The investor key was created by combining two EIP standards in an Ethereum smart contract; if you’ve tried out the demo, you’ll notice the investor key as the first large transaction on the Ethereum blockchain. The investor key allows you to add personal data to your address to make it compliant to be able to hold asset tokens.
The Ethereum Contract - Identity

Ethereum’s contract allows KYC providers to store your KYC status after having checked your credentials; that is, you and your address are now associated to one another. In regards to identity management, several keys are required to approve changes to your identity as well as access to your verification data. The main key is the management key, which holds the funds you own and can verify your identity and create additional keys. So long as this key is secure, nothing can happen to your funds. It should be kept in a hardware wallet or be handled on another secure device.
Want to know what the other types of keys can do for you?

Management Keys - Highest level, can sign claims and generate new keys

Action Keys - Can sign and approve claims that should be added to the investor key

Claim Signer Keys - KYC providers can use these to add identity information to the account

Encryption Keys - Can de-/encrypt unconfirmed claims sent to the investor key

Asset Token Consumer Keys - Can grant access to your ID documents
The Ethereum Contract - Claim Holder

Through the second part of the Ethereum smart contract, third parties (or in the case of the CRWD Network, KYC providers) can add your identity data to your key. These additions are automatically approved if they come from KYC providers on a verified provider list. These claims can contain various pieces of information. For investing into CRWD Token in Austria, the different types of claims look like this:

Passport verification necessary for investments up to €5000

Video identification necessary for investments over €5000

Proof-of-fund origins verification necessary for investments over €100.000

The claims are written into your investor key by the KYC provider in an unreadable but verifiable format. The information on the blockchain contains nothing that can be publicly interpreted, but gives some people the right to look up your ID information from a secure third party service.

Before a new project can access your personal information, you have to approve their data access with your management key. You are also be able to revoke access to projects you previously gave consent to in case you sold the asset tokens you owned from them.

Want to learn more about the investor key? Find all the information in the CRWD Network technical whitepaper.

CRWD Network use case #2: Special Taste Brewery



By Karin Turki
July 11, 2018
CRWD Network

We are going to give you some use cases of the CRWD Network, so that you get a better understanding of its entire capability and its unique features:

- use case #1: a (fictional) SME in the B2B sector, which needs fundings for further growth and therefore runs a crowdinvesting campaign on different local platforms (in Germany) in the CRWD Network

- use case #2: a (fictional) SME selling consumer products, which needs fundings as well as promotion to enter new markets. Therefore the company runs an international crowdinvesting campaign on various platforms in the CRWD Network - to get the required equity plus the marketing effect which come along with the campaign.

CRWD Network use case #2: Special Taste Brewery
Company Profile:

• Category: Small/Medium Enterprise

• Year of Founding: 2008

• Revenue 2017: €20 Mio.

• Industry: FMCG

• Headquarters: Rosenheim, Germany

• Subsidiaries: Budvar, Czech Republic (production facilities)

• Total Employees: 28

Special Taste Brewery produces flavored craft beer for the retail and hospitality industry (hotels, restaurants and catering). Founded in 2008 as a small backyard brewery, the company was able to establish its own production facilities in the Czech Republic due to increasing demand of its niche products and consistently good sales.

Today, 10 years after entering the market, the company has the experience, team and knowledge to enter the European specialty beer market and needs €20 Mio. for enlarging production facilities, marketing, personal and market entry fees.

Step 1: Preparation

Special Taste Brewery approaches CONDA.de with its project to raise the necessary funding and expand into markets in Austria, Switzerland, Slovenia, Slovakia and Hungary.

CONDA.de sets-up a fundraising campaign with international focus, based on the CRWD Network protocol.

Special Taste Brewery creates tokenized security offerings (profit participation agreement) for a maximum of €20 Mio. by using the CRWD Network protocol.

Step 2: Placement in the CRWD Network

Because Special Taste Brewery wants to use the marketing effect of their fundraising campaign to enter new markets, the company approaches several crowdinvesting platforms in the CRWD Network where it can place its campaign. Five local platforms agree to the terms and conditions, and with one click, the fundraising campaign of Special Taste Brewery goes online on the same day.

All of the five platforms use the same standardized process for using smart contracts and offer the same company tokens to the public. Investors can get whitelisted on any of the platforms prior to making investments. 100% of the tokens represent the whole €20 Mio. tokenized security offering by Special Taste Brewery.

Step 3: Launch of International Fundraising Campaign

For the start of the campaign, the smart contracts are deployed on the Ethereum blockchain and are used by all platforms, which present the campaign to their existing networks and earn commission for brokering the project (everything is automatically done by the underlying smart contracts).

All investments are transparently settled on the blockchain. Users are able to invest in common cryptocurrencies as well as in Euros. As soon as an investor sends Ether to the crowdsale contract, it will receive the desired tokenized equity offering.

Step 4: Successful Funding and Thousands of New Brand Ambassadors

After its successful campaign, Special Taste Brewery pays dividends to all investors on the blockchain through a single “click”. Investors receive the security tokens in their wallets and get additional investor benefits such as craft beer coupons, invitations to music festivals sponsored by Special Taste Brewery, merchandise material etc. Such perks help turn Special Taste Brewery investors into enthusiastic brand ambassadors for the brand.