Blockchain : Initial Investments in Blockchain Startups Can Be….. Shady
What do blockchain startups do before seeking funding for their project? One might think that due to the sudden and intense [competition](https://medium.com/cryptoeconomics-australia/blockchain-is-now-a-competitive-industry-e5a1940895e) in the blockchain industry, that entrepreneurs in the industry would be meticulously grinding their ax to stay ahead of their [competitors](https://thenews.asia/en/2018/09/24/blockchain-seoul-competition-and-specialization/). You might expect a small group of developers spending endless hours testing, retesting, de-bugging, and re-programming all portions of their product.
In a rare one-on-one with the founder of Reserve, [Nevin Freeman](https://firstname.lastname@example.org), much was discovered about the investment path for blockchain startups. He was asked *How do projects like Reserve and other startups go to a VC, angel investor, or other investment firm and pitch their idea when they have no working project ready?*
He answered, “Maybe they have time to read our whitepaper, then we get in a meeting. There we tell them about our idea and our vision. Usually what gets them to invest is that they think ‘this could be the next Bitcoin’… The whole thing is just an idea so we give them a really good deal.”
What is the Blockchain?
A block chain is a transaction database shared by all nodes participating in a system based on the Bitcoin protocol. A full copy of a currency’s block chain contains every transaction ever executed in the currency. With this information, one can find out how much value belonged to each address at any point in history.
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