Ethereum Blockchain for Private Equity Crowdfunding: Enabling Seamless USDC and Share Token Transactions

The most common form of ownership in a company is shares. A basic common share allows its holder to participate in the ownership and decision-making of the company based on the percentage of common shares held by that shareholder. A capitalization table, often referred to as a cap table, is a record stored in formats like spreadsheets or database tables. It provides comprehensive information about ownership distribution within a company. This document outlines various securities or shares held within the company, including stocks, and offers an overview of the company’s equity capitalization. As cap tables are maintained on centralized databases, they are susceptible to significant attacks. Thus, a blockchain-based platform for private equity crowdfunding is proposed. The platform provides a secure and transparent way for companies to raise funds from investors and for investors to invest in promising shares. In addition, mirror tables, the blockchain equivalent of cap table, is also suggested. A mirror table is to a cap table what a stablecoin is to a fiat currency. The off-chain cap table offers legal compliance and backward compatibility with existing systems, while a mirror table offers round-the-clock uptime, support for international wallets, and interaction with smart contracts. By utilizing blockchain technology, the platform can ensure that all transactions are recorded on a decentralized ledger, which is accessible to all participants and cannot be tampered with. Moreover, by using smart contracts, the platform can automate many of the processes involved and reduce the time and cost associated with traditional methods of raising capital.