Crowdfunding Platform Kickstarter Will Shift to Blockchain-Based Model

Crowdfunding Platform Kickstarter Will Shift to Blockchain-Based Model

Kickstarter, one of the leading crowdfunding platforms on the market, has decided to abandon its current business model and migrate to a blockchain-based platform. This will be built by an independent organization funded initially by Kickstarter to work on the protocol. The new platform will be built on top of the Celo blockchain. Kick-Starting a Blockchain Replacement

Kickstarter, a crowdfunding platform for products, services, and ideas, announced yesterday it will shift its operations to a blockchain-based platform. 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. According to Kickstarter:

[The platform will] be available for collaborators, independent contributors, and even Kickstarter competitors, from all over the world to build upon, connect to, or use.

The newly designed platform will also be open-source, so other similar projects will be able to fork it and use it for different goals, bringing this solution to the whole developer community; this means the community will have tools to create crowdfunding sites with no intermediation. The company further explained that a whitepaper for the new organization will be released in the coming weeks. Other big companies recently are also including blockchain elements in their developments. New Platform and Governance

The Kickstarter team believes their crowdfunding expertise will allow them to produce a blockchain-based protocol to better suit their needs. The new protocol will be created by an independent organization financed initially by Kickstarter. Kickstarter will also create a Governance Lab, that will be in charge of supervising the methods of governance for the protocol. This lab will undertake research and issue communications about the best ways to govern the new protocol using blockchain tools, including 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 elaborated that Celo will minimize the environmental impact of the protocol. Celo’s price also benefited from the revelation, rising to $4.48 after the announcement. The price has since dipped to $3.93 moving alongside bitcoin, ethereum, and most cryptocurrencies, which are currently posting losses.

However, some users have been very vocal on social media about their dislike for this decision, stating they are not aware of the benefits such a change could bring to the platform, and criticizing the possible environmental effects. Tags in this story blochachain, Blockchain, Carbon Neutral, celo, crowdfunding, Kickstarter, pivot, platform, Shift, users

What do you think about Kickstarter pivoting to blockchain? Tell us in the comments section below. Gitcoin Deactivates Grant for Farsi Speaking Communities Due to U.S. Sanctions NEWS | 1 hour ago Makersplace Plans to Drop World’s First 2pac NFT Collection Authorized by the Shakur Estate NEWS | 3 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons, Sulastri Sulastri Previous articleBitcoin.com Wallet Adds Support For Multisig (Shared) Wallets Next articleIndian Prime Minister Narendra Modi to Take Final Decision on Cryptocurrency Regulation Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItGhana"s Minority Lawmakers Reject Government Proposal to Tax Mobile Money Transactions

The Ghanaian government"s proposal to introduce a 1.75% levy on digital transactions was recently rejected by a minority of lawmakers who insist the new tax derails efforts to help increase the number of adults that are financially included. The Digital ... read more.Kevin O"Leary on SEC v Ripple Lawsuit Over XRP: "I Have Zero Interest in Investing in Litigation Against SEC" "We’ve All Decided Centralized Banking Is Rigged" — South Park Episode Features a Bitcoin-Only Future Despite Crypto Market Rout, Total Value Locked in Cross-Chain Bridges Jumps 9% in 30 Days Data Shows a Myriad of Crypto Networks Are More Profitable to Mine Than Bitcoin