8. Risk Analysis

Regulations

Since the tokenization of markets is new, and we are in a crisis evolving the market from projects with no further value than a blockchain, a new systemic organization of assets and finance is born. This means that we are creating something the world has not seen before.

The structure of the market is expected to mature within the next few years, shaping a world-wide framework of regulations and jurisdictions to further increase the safety of the new technology.

SHA, Secure Hash Algorithm

The WATER150 token will most likely launch on the Ethereum blockchain. Ethereum uses a Secure Hash Algorithm (SHA) to secure the transactions on the network and to validate the integrity of the data stored in blocks on the blockchain. SHA is a safe and widely used set of cryptographic hash functions that are used to ensure the integrity and authenticity of data.

Ethereum is considered one of the safest and most reliable blockchains due to its decentralized nature, robust technology and a large community of developers and users who are constantly improving its security features.

DAO

A decentralized autonomous organization (DAO) is a legal structure without a central governing body and whose members share a common goal to act in the best interest of its entity. The Water150 by Longhouse Foundation structure is designed to become a true DAO within 10 years. Investors and founders build the structure and have agreed to release any ownership to Longhouse Foundation within 10 years. After that, the wells and distribution are governed by the blockchain community. The voting mechanism allowing the blockchain community to choose the Board of Directors will enter into force in 2026. The setup with a foundation regulated by Swedish jurisdiction governing the management and distribution companies is the safest setup available on the market, since the regulations of the foundation cannot be changed.