Kickstarter, one the largest crowdfunding platforms, decided to change its business model in favor of a blockchain-based platform. To develop the protocol, this will be done by an independent group that Kickstarter initially funds. This platform will build on the Celo blockchain.
Launching a Blockchain Alternative
Kickstarter, which is a crowdfunding platform that allows people to fund products and services as well as ideas through crowdfunding, has announced it will move its operations to blockchain. The platform made the announcement in a blog post titled “The Future of Crowdfunding Creative Projects,” where it mentioned decentralization as one of the key reasons for the pivot. Kickstarter claims:
[The platform will]Collaborations and independent contributors from around the globe are welcome to use, build on, and connect with.
Also, the platform’s design will be open-source. Other similar projects can also fork the code and make use of it in different ways. The solution will then be available to all developers. This means they will be able create crowdfunding websites with minimal intermediation. A whitepaper about the organization’s creation will also be available from the company in the coming weeks. Some other big corporations are including blockchain elements into their development recently.
Governance and a new Platform
They believe that their expertise as crowdfunding experts will help them create a blockchain-based protocol better suited to their needs. An independent entity will create the new protocol, which was initially funded by Kickstarter. A Governance Lab was also created through Kickstarter. This lab will supervise the protocols governance. This laboratory will research the best methods to govern the protocol by using blockchain tools such as DAOs.
The crowdfunding protocol will be deployed on top of Celo, a smart contracts-enabled, “carbon-negative” blockchain (due to its proof-of-stake consensus algorithm). Kickstarter explained that Celo will reduce the protocol’s environmental impact. Celo’s price also benefited from the revelation, rising to $4.48 after the announcement. Since then, the price of Celo has fallen to $3.93, moving along with bitcoin and ethereum as well as most other cryptocurrencies that are experiencing losses.
Some users, however, have voiced their disapproval on social media, declaring that they don’t like this decision. awareThese are some of the potential benefits that such an update could have for the platform criticizingPossible environmental impacts
How do you feel about Kickstarter moving to the blockchain? Comment below.
Credits for the imageShutterstock. Pixabay. Wiki Commons. Sulastri Sulastri
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