Kickstarter will move to a blockchain-based model

Kickstarter will move to a blockchain-based model

Kickstarter, a crowdfunding platform for products, services and ideas, announced yesterday that it will move its operations to a blockchain-based platform. The platform made the announcement in a blog post titled "The Future of Creative Crowdfunding Projects", in which it mentioned decentralization as one of the main reasons for the pivot.

The newly developed platform will also open-source, so other similar projects will be able to fork it and use it for different purposes, bringing this solution to the whole developer community; this means that the community will have tools to create crowdfunding sites without intermediaries. The company further explained that a white paper for the new organization will be released in the coming weeks. Other large companies have recently been including blockchain elements in their developments.

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The Kickstarter team believes their crowdfunding expertise will enable them to produce a protocol based on blockchain to better meet their needs. The new protocol will be created by an independent organization initially funded by Kickstarter. Kickstarter will also create a Governance Lab, which will be responsible for overseeing the governance methods for the protocol. This lab will undertake research and publish communications on the best ways to govern the new protocol using blockchain tools, including DAOs.

The crowdfunding protocol will be implemented on Celo, a “carbon-negative” blockchain enabled for smart contracts (thanks to its proof-of-stake consensus algorithm). Kickstarter has calculated that Celo will minimize the environmental impact of the protocol. Celo's price also benefited from the Kickstarter statement, climbing to $ 4.48 after the announcement. The price has since fallen to $ 3.93 moving alongside bitcoin, ethereum and most cryptocurrencies, which are currently posting losses. However, some users have been very critical, on social media, of this decision, saying they do not understand the benefits such a change could bring to the platform and criticizing the possible environmental effects.

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