Kickstarter, one of the world’s most popular crowdfunding platforms, has announced that it will be moving its operations to a blockchain-based platform.
The new platform, which is still in development, will allow users to pledge and donate tokens directly to project creators. These tokens will then be stored on a blockchain and can be used as voting rights or to unlock rewards from the project.
Kickstarter has not yet given a timeline for when the new platform will be released, but says that it is “working hard” to make it happen. In the meantime, it is encouraging users to explore other blockchain-based crowdfunding platforms such as Indiegogo or BitShares.
Blockchain technology has been gaining traction in recent years due to its ability to provide transparency, accountability, and security to users. It is essentially a decentralized database that can be accessed by anyone with internet access, but cannot be altered once submitted. This means that the information it holds is both secure and incorruptible because everyone else will have an exact copy of it. Blockchain technology was originally developed as part of the digital currency Bitcoin in 2009, but has now started to catch on in other fields such as medicine , real estate , and solar panels .
The move towards blockchain-based crowdfunding platforms is not entirely unexpected given Kickstarter’s previous interest in digital technology. The company offered rewards for backing successful projects based on pre-order prices for products like Oculus Rift long before they were available commercially . It also created Drip , a crowdfunding platform that was designed to help musicians release music directly through their fans .
However, Kickstarter has always been somewhat hesitant towards digital currencies. It did not allow backers to pay in bitcoins until 2013 , four years after its inception. It also banned all Initial Coin Offerings (ICO) after it became aware of cryptocurrency scams earlier this year .
This is because ICOs are largely unregulated and have the ability to attract scammers due to the lack of security surrounding them. This makes kickstarter’s move an interesting one, as it gives credibility to the possibility of kickstarter utilizing blockchain technology while also giving users more assurance about potential projects being backed through kickstarter.
What is the difference between kickstarter and crowdfunding?
Kickstarter is a crowdfunding platform. Kickstarter does not provide fundraising, but rather kick-starts projects by helping them find supporters through the pre-purchase of goods or services.
What are kickstart campaigns?
A kickstarter campaign is an online fundraising project run through kickstarter. The name kickstart comes from the fact that this word was originally used to describe one way to start up a motorcycle engine. Kickstarter campaigns typically offer “rewards” for different pledge amounts, such as thank you notes or early product releases.
Are kickstarter and ICOs similar?
ICOs (Initial Coin Offerings) are both kind of like kickstarters in that they serve as crowdfunding platforms. However, there are also some fundamental differences between the two. For one, kickstarter does not allow for the purchase of digital currencies, whereas ICOs do. Additionally, kickstarter campaigns must offer tangible rewards for different pledge levels, whereas ICOs often just offer a chance to invest in a new project. Finally, kickstarter is a more established and regulated platform than ICOs. This is because kickstarter has been around for longer and has been subject to more scrutiny from the SEC (Securities and Exchange Commission).
What are some advantages of using blockchain technology?
Some advantages of using blockchain technology include:
-Security: Blockchain technology is essentially a decentralized database that can be accessed by anyone with internet access, but cannot be altered once submitted. This means that the information it holds is both secure and incorruptible because everyone else will have an exact copy of it.
-Speed: Bitcoin transactions can happen almost instantly since they do not require a middle man such as a bank to process the transaction
-Lower fees: Bitcoin transactions typically cost less than those that go through banks or credit card processors., which means that projects also stand to save on processing fees for backers.
-Transparency: Since all Bitcoin transactions are recorded within the blockchain, it creates a transparent and largely unforgeable record. This gives kickstarter users more security and trust in projects they pledge toward given their rigorous background checks on kickstarter campaigns.
What impact might kickstarter’s move towards blockchain technology be?
This is likely only one of kickstarter’s first steps towards blockchain technology. Given kickstarter’s popularity in the crowdfunding platform, it likely foreshadows that other companies will follow suit in turn driving up investment into digital currencies and kickstarter-like projects through their use.
It is worth noting that kickstarter has not revealed any plans to utilize cryptocurrencies just yet, but it shows that kickstarter is making strides towards becoming more involved in this sector, which provides increased legitimacy for kickstarters moving forward.
Will kickstarting be limited only to the music industry?
Kickstarter started out as an avenue to help musicians release albums directly through their supporters, but over time expanded its offerings to include all kinds of creative projects like video games, graphic novels , or even innovative new gadgets like 3D printers.
As kickstarter moves towards blockchain, it is likely that kickstarting will become more widely available to all kinds of projects through digital currencies. This allows kickstarter users to diversify their portfolios with digital currencies and still continue to financially support projects on kickstarter.
What are some disadvantages of using blockchain technology?
One potential disadvantage for kickstarters is the price volatility of cryptocurrencies like Bitcoin . For example, if a kickstarter campaign offers perks in the form of an album or other product that relies on receiving cryptocurrency, changes in the value of these coins could pose problems for project leaders during production and delivery. Additionally, there can be transaction fees associated with mining (using computing power to process) transactions which range.
Are kickstarter campaigns completely free?
Kickstarter campaigns are typically “free”, with backers only charged if the project reaches its fundraising goals. If it does not, backers are refunded in full, but this doesn’t work in kickstarters that offer perks like pre-orders of albums or other physical products. This is because kickstarter typically facilitates these transactions off-chain (outside of its blockchain framework) and involves the use of fiat currency.
What impact could kickstarter’s move towards blockchain technology have on kickstartes?
Every kickstarter campaign stands to benefit from increased trust since they will be subject to more scrutiny through kickstarter’s background check process. Additionally, this added transparency gives backers greater security when deciding which campaigns to pledge to. Furthermore, kickstarter’s move towards blockchain could lead to increased investment in digital currencies, kickstarter-like projects, and even the blockchain technology sector as a whole. This increased investment would likely be a result of kickstarter’s large user base and its growing popularity. Finally, it is possible that kickstarter will start to utilize cryptocurrencies in the future which would give backers more opportunities to use digital currencies when pledging.
Top 10 kickstarter projects created by musicians
1. Run the Jewels- $87,273 raised
2. The Boring Company- $51,492,681 raised
3. Exploding Kittens Game- kickstarted
4. Black Holes Sun- kickstarted
5. Torsobear Volume 1 : The Bear that was Death- kickstarter funded
6. SCiO: Your Sixth Sense- kickstarter backed
7. Unexpected John Cena Goes to Japan – kickstarter funded
8. LSTN Sound Co – kickstarter funded
9. Welcome to Night Vale’s New Album, “Ghost Stories”- kickstared
10. A Castlevania Fan Film – kickstartered