Kickstarter to Build Open-source Protocol, Plans to Shift Its Crowdfunding Operations to Blockchain

UTC by Sanaa Sharma · 3 min read
Kickstarter to Build Open-source Protocol, Plans to Shift Its Crowdfunding Operations to Blockchain
Photo: Depositphotos

A blog post by the company suggested that users won’t be able to find anything different while using the platform but will be benefited from some of the updates.

American public benefit organization Kickstarter is all set to introduce an open-source protocol on the blockchain. The protocol will fundamentally build a decentralized version of Kickstarter’s core functionality. According to a statement by the company, the new plan is aimed at engaging multiple platforms (including the forthcoming Kickstarter.com) with the upcoming protocol.

The inauguration of a brand-new unit known as Kickstarter PBC will look into developing and designing the protocol. The company is not only sponsoring the assignment but has also established an initial board for the organization while promising to be the premier platform on the protocol. However, no accurate dates or timelines have been provided to explain the order of the events that will take place.

The announcement also stated that the company was opening an “independent governance lab” that will focus on releasing research papers and involve a community that has conducive discussions on protocol governance. While this is an intriguing course of action for Kickstarter, the essence of the company is similar to what blockchain stands for, wherein users/consumers are allowed to sponsor or engage in a particular blockchain product, and in return are allowed to own stakes in the product’s prowess.

The so-called stake in Kickstarter’s prototype gives out digital products, but many younger blockchain crowdfunding platforms believe in inverting the model by furnishing users with tokens related to the project. As the project stems out, the worth of the product ripens. Whether the procedure is precisely legal is a subject of another discussion, but the fact is that an infinite number of ways can be devised to blur the regulators’ insight on what transaction is carried out.

As of now, Kickstarter plans to tread lightly and take its time developing the protocol. A blog post by the company suggested that users won’t be able to find anything different while using the platform but will be benefited from some of the updates.

Web3 technologies are called the next generation of the worldwide web, with more centralized and user-focused content. However, there is still some resistance to this particular innovation due to the excessive energy utilization while using regular networks like Bitcoin and Ethereum. Kickstarter is targeted at avoiding the following concerns by introducing their new vertical on the Celo Blockchain, which consumes a lesser amount of energy and uses an energy-intensive consensus mechanism that the developer team calls “carbon negative”.

While Kickstarter did not provide answers to many questions, they emphasized the fact that the protocol will leverage Celo. In retrospect, Kickstarter is not the first conventional technical firm that has begun curating an open-source protocol for its platform to subsequently adopt. American microblogging giant Twitter has been developing Bluesky, which is an initiative to design a decentralized social media protocol.

Blockchain News, News
Sanaa Sharma
Author Sanaa Sharma

Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.

WhaleMaker
Related Articles
WhaleMaker