Kickstarter to Move Crowdfunding to Blockchain

Kickstarter's Move Towards Decentralization with Blockchain Technology

Kickstarter, a leading crowdfunding platform, is making a significant investment in blockchain technology. They have announced plans to develop an open-source protocol designed to replicate the core functions of Kickstarter in a decentralized manner.

New Protocol and Organization

The company envisions that this protocol will be adopted by numerous platforms, potentially including the existing Kickstarter.com. To facilitate this development, Kickstarter is establishing a new organization, currently unnamed, dedicated to building the protocol.

Kickstarter is providing the initial funding for this project and will appoint an inaugural board for the organization. They are also committed to being among the first platforms to utilize the new protocol, although a specific timeline for this transition remains undefined.

Exploring Protocol Governance

Furthermore, Kickstarter is creating an “independent governance lab.” This lab will focus on researching and engaging with the community regarding the governance of the protocol.

Synergy with Blockchain Principles

This move is particularly interesting given Kickstarter’s existing alignment with the core principles of blockchain. Both models empower consumers to support projects and foster communities around them.

However, a key difference lies in the nature of the “stake” offered. Traditionally, Kickstarter provides backers with a completed product. Newer blockchain crowdfunding platforms are innovating by offering users tokens linked to projects, which can increase in value as the project progresses.

User Experience and Gradual Implementation

For now, Kickstarter intends to implement the protocol in a way that minimizes disruption to the user experience. A recent blog post stated that users will not directly interact with the protocol, but will benefit from its enhancements.

Addressing Environmental Concerns

Recognizing concerns surrounding the energy consumption of some blockchain networks, like Bitcoin and Ethereum, Kickstarter is building its new protocol on the Celo blockchain.

Celo utilizes a more energy-efficient consensus mechanism, which its developers describe as “carbon negative.” Beyond this, Kickstarter has not yet detailed specific plans for the protocol’s development.

Following a Trend in Tech

Kickstarter is not alone in this endeavor. Other established tech companies, such as Twitter with its Bluesky project, are also developing open-source protocols for their platforms.

These efforts aim to create decentralized alternatives to existing centralized services.