Kickstarter Will Run on a Blockchain: The future of Crowdfunding is Crypto

The big news by Kickstarter will change how crowdfunding is used from now on.

In a blog post published on the 9 of December, CEO Aziz Hasan and co-founder Perry Chen said Kickstarter will develop an open-source protocol that will live on the blockchain. The two executives cited the blockchain's efforts in minimizing its environmental impact - being carbon negative - as well as the fact that it is open-source.

The blockchain that Kickstarter will use will be CELO, a platform that is known to minimize environmental impact and focus on global accessibility through mobile access to the blockchain, as the executives said after the announcement ''the best way to get better systems is to build better systems.''

Now let's talk about this news more deeply and see how people reacted to this news!

Before reading the article...

Make sure to smash like and subscribe to my Youtube channel to support me and to stay updated on new crowdfunding videos that I’m weekly sharing, and keep on following this blog in which I'll feature very useful and detailed Crowdfunding tips.

CROWDFUNDING ON BLOCKCHAIN. HOW?

Crowdfunding on blockchain is the new mission of Kickstarter, which, in this sense, has created an independent organization that will be dedicated to developing Kickstarter on the protocol. Users will not see the basic protocol, but they will be able to notice and benefit from the improvements that will be achieved with the new decentralized platform.

When Kickstarter unveiled its ambition to develop a blockchain-based crowdfunding system, the company characterized the move as a way to push creators closer to their audiences, saying that backers should be able to easily discover and participate more deeply in projects, better control their data, and have more robust tools to assess the trustworthiness of a project.

Not only that, but the platform is also creating a lab dedicated to developing the governance of the protocol, led by Purpose Foundation's executive director and co-founder, Camille Canon.

The new whitepaper will be released in the coming weeks (I'll keep you updated) perhaps already entering 2022, and will describe all the plans for the protocol, outlining its technology. For now, the platform has revealed that Celo's Blockchain crowdfunding protocol will be available to collaborators, independent contributors, and even competitors of Kickstarter.

IS THIS A ''YAY'' OR ''NAY'' NEWS?

By relying on a blockchain like Celo, Kickstarter can remove the involvement of middlemen and gatekeepers. In this way, the company says it hopes to reduce friction and make the fundraising process easier for millions of unbanked people around the world.

However, Kickstarter's blockchain plans have been met with intense backlash from its community. Social media and Kickstarter users, including prominent artists and designers, have called out the platform for mulling a blockchain model.

A blockchain could potentially be a major growth for Kickstarter but, based on the latest developments, it's clear that many of its existing users are strongly opposed to the idea. The backlash has come from users' alleged claims that Kickstarter's blockchain strategy is harmful to the environment.

A Korean American game designer wrote in a tweet post they were "distressed" by the partnership and urged Kickstarter to reconsider the decision. Another detractor of the Kickstarter-Celo partnership, wrote, "Blockchain is an environmental disaster and I will never support a board game that uses it [Kickstarter]."

While the environmental concerns regarding Proof-of-Work chains like Bitcoin are real, it is essential to distinguish Bitcoin's Proof-of-Work from a much more energy-efficient consensus mechanism known as Proof-of-Stake implemented by Celo. In Proof-of-Stake, instead of using energy-intensive calculations to validate blocks, blockchain validators protect the network by bringing tokens into play to validate transactions.

WRAPPING IT UP

It is for sure big news from a big platform and that can cause a lot of different opinions. It seemed to me a really innovative news and I cannot wait to have further updates to tell you, creators!

Always remember that a crowdfunding launch requires a lot of hard work and sacrifices, but I'm sure that it will be worth it in order to start making your dream project come true.

Always remember that before launching your project you will need to analyze and prepare your pre-launch phase to launch your first product, I’ve got you covered with my crowdfunding pre-launch free e-book called ''3 steps to success on Kickstarter and Indiegogo''. 

As always make sure to subscribe to my channel to stay updated on fresh new content that I’m gonna drop there.

Ciao ciao! 

Privacy Policy: We hate spam and promise to keep your inbox safe, occasionally sending high-quality content related to this topic, according to your permission.