Crowdfunding was the big thing a few years ago: anyone could post their project on websites like Kickstarter and ask for financial support. If the project goal could be achieved, it was implemented. The earlier hype may now be getting a new lease on life, thanks to blockchain technology. Kickstarter itself announced that it would bring its platform to the blockchain Celo with an open protocol. In doing so, the core functions of the platform are to be preserved.
Regardless of the operator, crowdfunding on the blockchain offers several advantages: It is more reliable, transparent, trustworthy, decentralized, cost-effective, and convenient for all parties. A platform like Kickstarter no longer serves as an intermediary that must be trusted to receive funds. This now happens automatically via smart contracts. Backers pay in their contribution and if the project goal is reached, the smart contract automatically sends the money to the project team. If the goal is not reached, the contributions go back to the supporters.
The platform itself now provides the protocol and chooses the cryptocurrency, which serves as the transaction and exchange medium. Backers buy the cryptocurrency to claim their share of the project and can sell the currency or transfer it to another project. Crowdfunding could gain new traction on the blockchain. Startups, entrepreneurs and artists can get their project funded without major hurdles.