Maciej Zieliński

08 Mar 2022

Modern technologies make more and more people try to raise capital in order to make their ideas a reality. The ICO (Initial Coin Offering) and STO (Security Tokens Offerings) methods which we describe below can help with this immensly! The entire acquisition process is based on digital assets, crypto tokens, blockchain technology and smart contracts.

What is Initial Coin Offering (ICO)?

Initial Coin Offering (ICO), is a method of raising capital in the form of cryptocurrency or tokens in order to finance a project. This method is very often used when finalizing blockchain startups. Initial cain offering is equivalent to initial public offering (IPO) in the cryptocurrency industry. A company that wants to raise money to create a new coin, application or service can launch ICO as a way to raise funds. A crypto token is typically created as a currency that matches the currently created ico projects. This means that a project that wants to raise funds for its own idea should create a crypto cain or a token that allows for financial settlements between project developers and investors. This is different from traditional trade markets because it is based on crypto assets and a smart contract that accounts for them.

Place for ICO

Nevetheless, there are many cryptcurrency markets and crypto exchanges which allow token sales and organizing ico projects and initial cain offerings. Interested investors may purchase a preliminary coin offer to receive a new cryptocurrency token issued by the company. These utility tokens are associated with a product or service offered by your company, or may simply represent your participation in a company or project.

How do initial coin offerings work?

When a blockchain project wants to have a sucessful ico and raise coins through that ICO, the first step of the organizers should be to determine how the project can be organized. An ICO can be organized in several different ways, including:

  • Static Price: A company can set a specific financing target or limit, which means that, every token sold in ICO has a fixed price, and the total supply of tokens is fixed.
  • Static Supply and Dynamic Price: ICO may have a static token supply and a dynamic funding goal – that means the amount of money received in the ICO determines the overall price per token.
  • Dynamic supply and static price: Some ICOs have a dynamic supply of tokens, but a fixed price, which means that the amount of funding received is determined by supply of the market.
How do ICO work?

In addition to the structure of ICO, a cryptocurrency project should normally have a white paper which is made available to potential investors through a new token web page. The project promoters use white paper to explain important information related to ICO, namely to present:

  • What is the project about
  • How many virtual tokens are kept by the founders
  • What kind of payments (and currencies) will be accepted
  • How long will the ICO campaign last
  • The demand the project will satisfy after its completion
  • How much funding is needed for the project
  • minimum entry barrier
  • what do we gain access to as part of our investment

The project should present the whitepaper as part of the ICO campaign it creates to encourage enthusiasts and sympathizers to purchase some tokens. Investors can generally use either a fiscal or digital currency, or use other financial instruments to buy new tokens. As part of the capital they have invested, investors enjoy high profitability, along with the benefits of the token, while also helping to achieve the project objective. Let us remember that if the money collected in the ICO is less than the minimum amount required by the ICO criteria, then all money can be returned to the project investors. If the funding requirements are met within a certain period of time, the money collected is spent on the project's objectives. It is worth noting that the investment on the basis of tokens or coins provides anonymous participation in the project.

Who can launch an ICO?

Currently, anyone who has access to the relevant technology can launch a new cryptocurrency (unless it is restricted by national law). Unfortunately, out of all possible ways of financing, ICO is probably one of the easiest forms which can be used to commit fraud. To avoid scams you should:

  • check who is behind a successful ico
  • obtain as much knowledge as possible regarding what a given cryptocurrency token offers
  • find out if we are dealing with a well executed digital campaign
  • obtain information regarding the investment contract
  • analyze the regulatory scrutiny of the project
  • determine whether purchasing a token grants us any ownership rights, or at least fractional ownership

Pros and cons of ICO

Online services can help you generate and acquire cryptocurrency tokens, so your business can consider launching ICO with ease. ICO managers generate tokens according to the terms of the ICO, receive them, and distribute tokens to retail investors. Let us remember that ICO is not strictly regulated by financial bodies such as the SEC, and therefore funds lost as a result of fraud or incompetence may never be recovered. The advantages of ICO are undoubtedly that a company can obtain rapid capital for the development of a project and investors can expect high return rates on their investment.

What is STO (security token offering)?

STO, or Security Token offering, is increasingly important in the financial world. STO is a process in which investors introduce a cryptocurrency coin or token. Such securities or financial instruments have a monetary value and can be traded on STO cryptocurrency exchanges where the information is recorded in public blockchains This process is often seen as a hybrid approach between the initial coin offering (ICO) and the more traditional initial public offering (IPO) for shares.

ICO vs STO: what is STO?

What are security token offers?

The security token offering (STO) is in fact a public event where tokens are sold through cryptocurrency exchanges. Tokens can then be used for trade in real financial assets such as shares. STO were already used in many investment scenarios and are more enthusiasticly perceived by both mainstream and institutional investors.

What is the difference between Initial Coin Offerings and security token offerings?

How do ICO and STO compare to one another? The ICO and the security token offerings (STO) generally follow the same process. They represent the initial distribution of coines related to a particular investment mechanism. However, they differ in the characteristics of the offered token.

STO offers are supported by assets and are fully in line with the legal order. On the other hand, ICO are tool tokens that offer access to a native platform and decentralized applications. ICO tokens are primarily intended for use, not investment. In practice, this means that the entry barrier for ICO is much lower. It is therefore much more likely that they will be offered to the general public. It is much more difficult to start a STO because their ethos is to provide an investment contract while ensuring investment security. This requires much more preparatory work and compliance.

Pros and cons of STO

Here are some of the pros and cons related to STO:


  • STO are generally seen as less risky investments than ICO and IPO, as they are protected by securities laws. They are also supported by real assets, which means that it is easier for the user to assess whether the token is accurately priced.
  • Initial offers of security tokens are also cheaper because their structure allows for the removal of intermediaries such as banks and brokerage houses.
  • Smart contracts, which are a part of the STO package, also reduce the need for lawyers, making STO a more affordable option.
  • STO are available for trade 24 hours a day, 7 days a week, providing additional flexibility

Cons related to STO

A huge disadvantage of STO is that non-accredited investors cannot possess them. In the United States, to become an accredited investor, you must earn at least $200 000 per year or have at least $1 million in your bank account. This makes tokens much less available than traditional Blockchain offers.

STO are more expensive than utility tokens due to their regulatory requirements. In addition, unlike similar coins, they are also subject to restrictions on second hand markets.
Moreover, security tokens have a time interlock mechanism. You can only trade STO tokens between qualified investors for a pre-determined period after the STO process is initiated.


Both ICO and STO are offers that allow for quick and substantial raising of capital for new blokchain related start-ups. However, both ICO and STO have some advantages and disadvantages which can help you decide which technology you prefer to use. With ICO, access to investments is much easier and simpler than with STO. Unfortunately, STO imposes an obligation to only allow accredited investors to invest in it, which may make raising funds much more complicated. At the same time, STO ensures greater security of the collected funds. Which method is better? It depends on what is more important for us. However, both methods are very popular.

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What is Account Abstraction?


10 Nov 2023
What is Account Abstraction?

Account abstraction is a new way of thinking about how users interact with blockchains. Instead of using traditional externally owned accounts (EOAs), account abstraction allows users to create and manage their accounts using smart contracts. This has a number of potential benefits, including improved security, enhanced privacy, and increased flexibility.

What is account abstraction?

Account abstraction is a concept that, at its core, aims to simplify the user's interaction with blockchain networks. It is a transformative approach that seeks to mask the technicalities of blockchain operations from end-users. It is making transactions as straightforward as sending an email. Account Abstr. allows users to interact with the blockchain without worrying about the underlying technical details.

How does account abstraction differ from the traditional model?

In the traditional account model, each user has an EOA. EOAs are controlled by private keys, which must be kept secret in order to protect the user's funds. Acc. abstraction allows users to create and manage their accounts using smart contracts.

Historical Context

The journey towards acc. abstraction began with the first generation of blockchain technologies, characterized by their "one-size-fits-all" approach to account management. Bitcoin, for instance, introduced the concept of accounts and transactions in a form that was accessible to tech-savvy individuals but remained perplexing to the layperson. Ethereum expanded on this by introducing smart contracts, which opened the door to programmable transactions but did not alter the fundamental account structure. The idea of acc. abstraction has been discussed in the Ethereum community for several years as a part of various Ethereum Improvement Proposals (EIPs), particularly as a feature to be potentially implemented in Ethereum 2.0. It is a direct response to the need for a more versatile and user-centric design that can cater to a broader audience and spur the widespread adoption of blockchain technology.

The Technicalities of Account Abstraction

Account abstraction is not merely a theoretical construct but a technical innovation with specific mechanisms underpinning its operation. In essence, it alters the way transactions are initiated and executed within a blockchain network.

How Account Abstraction Works

Under traditional blockchain models, initiating a transaction involves an externally owned account (EOA) signing a transaction with a private key. This transaction is then broadcast to the network for validation and inclusion in the blockchain. Account abstraction, however, replaces this process with a more flexible one. Here, every account is a smart contract, and transactions are messages sent through these contracts. These smart contracts can encode complex rules for transaction validation, beyond what EOAs can do, such as multi-signature requirements or conditional transactions based on certain triggers.

The technical crux of account abstraction lies in the smart contract’s ability to define its own conditions for transaction execution. This means that user accounts can have unique security protocols or automated operations without the user needing to understand the underlying smart contract code.

Hey! Are you interested in the latest technologies in the blockchain area? be sure to read the article 'Top Zero-Knowledge Proof Projects to watch in 2023'

The Benefits of Account Abstraction

The implications of account abstraction are profound, offering a range of benefits that can enhance the blockchain experience for users and developers alike.

Improved User Experience

One of the most significant advantages of account abstraction is the improvement it brings to user experience. By abstracting away the complexities of key management and transaction rules, it presents a more intuitive interface for users.

Enhanced Security Features

Account abstraction also allows for the implementation of advanced security measures. Since each account can define its own logic, users can tailor their security settings to their specific needs. For instance, one might set up an account that requires additional verification for transactions exceeding a certain value or restricts withdrawals to certain addresses.

Future Implications

The future implications of account abstraction are vast. As the technology matures, it could become a standard feature of blockchain networks, potentially making the current distinction between user accounts and smart contracts obsolete. This could lead to a new wave of blockchain applications that are both powerful and accessible, bringing us closer to the vision of blockchain technology as a seamless part of everyday life.

Challenges and Considerations

Technical Limitations

One of the primary technical challenges of Acc. abstraction lies in its integration with existing blockchain protocols. Current networks are optimized for the EOA model, and introducing a new account structure necessitates significant changes to the core protocol. This includes modifications to the way transactions are propagated in the network, how gas fees are calculated, and how the state of the blockchain is managed. Ensuring that these changes do not compromise the network's performance or security requires careful planning and extensive testing.

Compatibility with Current Systems

Another consideration is the compatibility of account abstr. with the vast ecosystem of existing blockchain applications and services. Wallets, exchanges, and other services have been built around the traditional account model. Transitioning to an acc. abstraction model will require these services to update their infrastructure, which may be a complex and resource-intensive process. Furthermore, there is a need for standardization across the industry to ensure that different implementations of account abstr. can work seamlessly together.


Acc. abstraction represents a significant leap forward in the quest for a more user-friendly blockchain experience. By streamlining the transaction process and offering enhanced security features, acc abstraction has the potential to make blockchain technology more accessible to a broader audience. However, the path to widespread adoption is not without its obstacles. Technical challenges and compatibility issues must be carefully navigated to integrate it into the existing blockchain landscape.

Key Takeaways

How to Add Gnosis Chain to MetaMask: A Simple Tutorial


03 Nov 2023
How to Add Gnosis Chain to MetaMask: A Simple Tutorial

As the cryptocurrency ecosystem expands, there is an increasing need for various blockchains with distinct capabilities. Gnosis Chain enters the scene, offering a selection of unique characteristics. By integrating Gnosis Chain with MetaMask, users can access a more comprehensive array of decentralized services. We will walk you through the steps to add Gnosis Chain to your MetaMask wallet in this tutorial.


Setting up MetaMask

Before exploring the integration of Gnosis Chain, it is crucial to have MetaMask installed and operational:

  • Download and Install: If you have not done so already, visit the official website to download and install the MetaMask browser extension.
  • Setup Account: After completing the installation, create your account and make sure to remember the provided seed phrase. This phrase serves as your primary means for account recovery, so keep it secure.
  • Secure Your Account: Protecting your MetaMask account is of utmost importance. Use a robust password and never disclose your seed phrase to anyone.

Gnosis Chain

It is always helpful to have a basic understanding before incorporating any new blockchain into your wallet:

  • Gnosis Chain Overview: Gnosis Chain, a rising star in the blockchain world, brings a range of decentralized solutions to the table, such as prediction markets and decentralized trading platforms.
  • Benefits & Features: Among Gnosis Chain's main selling points are its accelerated transaction speeds and potentially lower fees when compared to congested networks.

Tutorial: How to Add Gnosis Chain to MetaMask

In the top right-hand corner of your browser, you'll find the wallet. If pinned, click on the MetaMask fox icon; if not, click the three dots in the top-right corner. The following screen will appear:

An option to expand the wallet to a new browser page is available by clicking "Expand view:"

This action will launch MetaMask in a new tab:

By clicking on the ‘Ethereum mainnet’ in the top left corner, you can add another network. Click ‘Add Network’

Choose option ‘Add a network manually’

Then, input the information below:

Network Name: Gnosis Chain formerly xDai

RPC URL: https://rpc.gnosischain.com

ChainID: 100

Symbol: XDAI

Block Explorer URL: https://gnosisscan.io

After saving the settings, Gnosis Chain will be added to your network.

The Benefits of Adding Gnosis Chain to MetaMask

With multiple blockchains becoming more common, integrating Gnosis Chain with MetaMask offers numerous advantages:

Expanded Capabilities: Accessing Gnosis Chain through MetaMask opens up a collection of exclusive applications and features inherent to this particular blockchain, which may include unique dapps or cutting-edge financial products.

Diversification: The crypto domain is extensive and constantly growing. By incorporating various chains like Gnosis into MetaMask, you broaden your potential investment opportunities and decentralized application experiences, ensuring no opportunities are missed.

Speed & Cost-Effectiveness: Network congestion and high gas fees on established platforms like Ethereum can discourage many users. Gnosis Chain's architecture has the potential to provide relief through quicker transaction times and more affordable fees.

In summary, as the possibilities within the crypto sphere continue to evolve, tools like MetaMask grant users access to this expanding world. By adding chains like Gnosis, users can stay ahead in this decentralized revolution.


By bridging platforms like Gnosis Chain with accessible tools like MetaMask, individuals not only amplify their engagement with decentralized applications but also fortify their position in this expansive realm. The integration of Gnosis Chain to MetaMask epitomizes the evolution of the crypto landscape – a testament to its ever-growing diversity and potential. As we continue to delve deeper into the decentralized future, tools and integrations like these will undoubtedly play a pivotal role in shaping our digital experiences and opportunities. Whether you're seeking more efficient transactions, diverse dapp interactions, or simply a broader understanding of the crypto ecosystem, this guide's steps open doors to a new horizon.