Kickstarter, the most well-known crowdfunding platform in the world, is attempting to jump headfirst into blockchain technology. It plans to change its business model and offer the same user experience while maintaining the original brand.
In a blog post, the firm stated that this was part of an effort find better tools to help it fulfill its mission to bring creative projects to life through community collaboration.
Kickstarter wants to be decentralized –and green
Kickstarter is not yet a fully fledged blockchain initiative. The corporation established an independent organization to build an open-source protocol. It will replicate the functionality of Kickstarter’s core platform, but it will be decentralized.
Kickstarter PBC will initially fund this independent organization. However, there are no details about the funds allotted to this initiative nor its name.
Kickstarter PBC was the Public Benefit Corporation that was created in 2015 after Kickstarter Inc had migrated its business model.
After the preparations have been completed by the independent organization, Kickstarter will migrate its website to the new infrastructure. Kickstarter promises that its users will not experience any changes even though technology shifts to a decentralized model.
Kickstarter will use Celo as a Proof-of-Stake, carbon-negative, Proof-of-Stake Blockchain. Celo can process 7 million transactions per ton of CO2 emissions.
For reference, Digiconomist’s Bitcoin Energy Consumption Index estimates that it takes 191 tonnes of CO2 to mine 1 BTC. A Bitcoin block contains between 1200 to 2400 transactions according to Ycharts data.
Crowdfunding and DAOs
Kickstarter’s move is a great fit. Kickstarter’s motivation is precisely based on decentralized decision making. Startups do not receive funds unless the community supports the initiative by donating the necessary amount.
Kickstarter’s popularity hasn’t waned. The platform has seen steady growth since its inception, raising more than 5.9 billion USD since its inception.
The amount of Kickstarter funding pledged between July 2012 and July 2021 (in millions of US dollars)
There is however a new player on the block: Decentralized organizations of people (DAOs), which make decisions using Blockchain technology without the need to use intermediaries.
As time passes, DAOs with a million-dollar budget are being formed around projects that range from functional blockchain projects such as the Ethereum Name Service to purchasing a copy the U.S. Constitution.
It’s not surprising that Kickstarter is looking to test the waters and possibly create a better way for new ventures to be supported.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.