Thursday, January 27

Kickstarter plans to offer its services on a blockchain

Kickstarter PBC, a crowdfunding company (or crowdfunding), announced that they are developing a new product, which will offer similar services, but in a more decentralized way. This they intend to achieve through the implementation of a blockchain.

The novelty is accompanied by the creation of a new company – whose name has not yet been revealed – that will belong to the same business group. The change will take place completely behind the scenes and should not affect the way people use the site, the company advises in a release.

The company may hope that with the “blockchain narrative” it can regain relevance. The industry of crowdfunding it is not going through its best moment. Jackie Davalos, technology and finance specialist at Bloomberg Multimedia, holds that this could be because money is flowing into the cryptocurrency environment, which has products such as decentralized autonomous organizations (DAO).

These decentralized organizations can fulfill functions similar to those of a crowdfunding company. The advantage, both for investors and for those who request the money, is that access tends to have fewer administrative obstacles. A smart contract makes sure that everything goes according to schedule.

A recent case of DAO financing occurred in the United States. CriptoNoticias reported that ConstitutionDAO raised USD 40 million in order to acquire an old copy of the Constitution of that country (finally the DAO did not win the auction and the money was returned to the contributors).

Kickstarter, according to describe the company itself is “a financing platform for creative projects of all kinds.” As an example they mention movies, games, music, art, design and technology.

«The creator of each project sets a goal and a financing term. If people like the project, they can contribute money to make it happen. If the project reaches its financing goal, the sponsors’ credit cards will be charged when the term ends.

Kickstarter, crowdfunding company.

If the plans follow the path announced by the company, in the near future they will offer a similar service, but with smart contracts that regulate business on a blockchain.

Kickstarter to use Celo, a more centralized Ethereum fork

The blockchain that Kickstarter will use in its new initiative is Celo. This is how the company directors explain it:

“We chose Celo, an open source and carbon negative blockchain platform, as the best technology and community to build the protocol. We are inspired by the thoughtful approach of the Celo ecosystem to develop the technology they want to see in the world.

Perry Chen and Aziz Hasan, directors of Kickstarter.

The developers of Celo describe this blockchain as very similar to Ethereum (in fact, it arises through a fork).

Kickstarter is a crowdfunding platform founded in the United States in 2009.
Fuente: chrisdorney /

They mention two differences: the first one is that Celo has its own accounting, with FOREHEAD as a native cryptocurrency, instead of ether (ETH). The second of them is related to the payment of fees. It incorporates a different mechanism than Ethereum that makes it less expensive to pay validators to verify transactions.

It is also worth mentioning Zeal, with only 89 validator nodes, is much more centralized than Ethereum, which has 11.712 at the time of writing this article.

Another company that gave its go-ahead for Celo was Telekom from Germany. The European communications company, as reported by CriptoNoticias in April of this year, invested in the CELO cryptocurrency in order to be part of the Celo Alliance. Back then, the price of the crypto asset increased from $ 3.84 to $ 7.28.

CELO holders did not have the same luck this time. The price of the currency is in a downtrend And despite the Kickstarter news, he’s still unable to recover from the overall market crash that occurred last weekend. Each unit of CELO is trading at USD 3.90.