Will Kickstarter's Move to Blockchain Make It Easier to Crowdfund Your Next Project?

The crowdfunding platform is supporting the development of an open-source protocol that "even Kickstarter competitors" can use.

learn more about Chloe Arrojado

By Chloe Arrojado

Shutterstock

Crowdfunding platform Kickstarter is now aiming to incorporate blockchain technology in its crowdfunding mission, according to a Wednesday blog post.

To do this, Kickstarter is supporting the development of an open-source protocol that will create a decentralized version of its functionality. Kickstarter.com will then adopt the new infrastructure after it's built. Though the Kickstarter will be built on top of this new protocol, it will also "be available for collaborators, independent contributors, and even Kickstarter competitors, from all over the world to build upon, connect to, or use."

"We think bringing all that we've learned about crowdfunding since 2009 to inform the development of a decentralized protocol will open up exciting new opportunities for creative projects to come to life. In the coming weeks, a white paper will be released outlining the technology and plans for the protocol," Kickstarter founder Perry Chen and CEO Aziz Hasan wrote in the post. Kickstarter is partnering with open-source, carbon-negative blockchain platform Celo to build this new protocol.

Kickstarter users won't "see" the shift per se, as the company told Bloomberg the change will not affect the way people use the site. However, users "will benefit from its improvements." According to Bloomberg, this development will start in the first quarter of 2022, and Kickstarter expects to transition later in the year.

Related: 8 Benefits of Blockchain to Industries Beyond Cryptocurrency

Seeing that blockchain technology and crowdfunding share some similarities, the move isn't too left-field. Distributed autonomous organizations (DAOs) are already using blockchain technology to fund various projects. One group, ConstitutionDAO, even raised more than $40 million to try to buy the Constitution.

"In the coming years, we believe large swaths of the internet will be reconstructed from the ground up by open and decentralized networks of contributors, who participate in the design, operation, governance and even ownership of the technology themselves," Kickstarter wrote in the blog post. "We believe that helping build the infrastructure and tools that help bring creative projects to life is an important and exciting way for us to serve our mission."

Related: 5 Ways Hybrid Smart Contracts Are Changing the Blockchain

Chloe Arrojado

Entrepreneur Staff

Editorial Assistant

Related Topics

Editor's Pick

The Dark Side of Pay Transparency — And What to Do If You Find Out You're Being Underpaid
Thinking of a Career Change? Here Are 4 Steps You Can Take to Get There.
A Founder Who Bootstrapped Her Jewelry Business With Just $1,000 Now Sees 7-Figure Revenue Because She Knew Something About Her Customers Nobody Else Did
Everything You Need to Know About Franchise Law
Marketing

Streaming TV Is the Future of Advertising — Without Breaking the Bank

Today's consumers expect personal, impactful ads. There's an advertising method that can get you there for half the price, making it the next frontier in digital advertising.

Business News

'Crying Northwestern Kid' Turned His Viral Fan Moment Into a Successful Harvard Admissions Essay. He Says the Experience Taught Him About Empathy.

Six years ago, Phillips was watching No. 8 Northwestern take on No. 1 Gonzaga during March Madness when he became a meme.

Branding

An Introvert's Guide to Building a Personal Brand

Uncovering your personal brand does not require extroverted personality traits. Here are a few tips for introverts who want to uncover theirs.