How do smart contracts enhance the security of ICOs?

auroragrace

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Smart contracts play a vital role in enhancing the security of ICOs. They are self-executing contracts with predefined rules and conditions. In ICOs, smart contracts automate various processes, reducing the need for intermediaries and, in turn, minimizing the risk of human error or manipulation.One critical function of smart contracts is to handle token distribution. When investors contribute funds to an ICO, the smart contract automatically sends tokens to their wallets once certain conditions are met, such as the conclusion of the ICO period. This ensures transparency and trust among investors because the token distribution process is entirely verifiable on the blockchain.

source: https://www.inoru.com/ico-development
 
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