Blockchain to Advance Crowdfunding

In the last few months we all have been reading and hearing a lot about the way the underlying technology of bitcoin is going to radically change the monetary system, DNS, intellectual property ownership, and data storage. Crowdfunding platforms that are powered by the blockchain technology eliminate the need for middlemen or third party trust.             

There could be numerous ways to enhance crowdfunding with the help of blockchain, but here I am talking about two elementary ways.

Receive cryptocurrency payments

One of the biggest problems with crowdfunding is that it is usually not so easy to donate funds internationally. Digital money such as Bitcoin can help get rid of this problem as any sort of cryptocurrency is not affected by country borders.

Execute trade on an independent system

The trade logic of a crowdfunding platform is generally to keep all donations until a particular amount is reached. In case it happens, the payment is forwarded on to the beneficiary. If it doesn't reach within a particular time period the payment are sent back to the donor.

And this logic can be executed completely as an Ethereum contract, which means it will be absolutely independent. Right now if you want to run a campaign for crowd-funding you will have to get the green light from a platform, whereas with an Ethereum contract you can do that without anybody’s permission and have complete faith that the system will work the way it is intended to.

It is absolutely possible that new crowd-funding models will emerge which might use smart contracts in a bespoke fashion.

For example: assume a charity crowdfunder where a donor can state that their donation should be used for a particular work, and where the terms of donations can be defined and strengthen by the blockchain.

Almost everything that we do on Internet will function better when all business logic will be executed on a blockchain.

Blockchain technology crowdfunding makes two promises: In the short term, it’s a right way for the decentralized bitcoin system, whether you think it as a currency or all the distinctive apps based on its protocol, to fund its elemental development, and deal with some scalability issues. In the long term, it will offer opportunity to individuals to become part of actual rounds of initial stage investment and to get advantage from valuation appreciation.

There are certainly a few issues which require to be addressed around crowdfunding platforms powered by blockchain. But it looks possible that in the coming years blockchain will emerge out  to be a radical technology changing the

Want to use blockchain technology for your upcoming application or a new project? If so, we are more than happy to work with you. Please feel free to write to us at [email protected].