Meta Digest

Kickstarter’s Move to Join the Blockchain Revolution Meant Revolutionizing Crowdfunding

Source: Kickstarter

Technology has been at the forefront of the world’s growth and progress, and it’s advancing so quickly these days that some have not had the chance to catch up. Although being left behind in some aspects doesn’t mean the end of the world, getting left behind could prove rather disastrous for those who occupy the metaspace. Take, for example, Kickstarter. 

Kickstarter had an epiphany last year when it announced to the general public that it is pivoting its website to the blockchain, much to the surprise of its users. While the company cannot fix its problems with a wave of a magic wand, many believe there are plenty of reasons to welcome Kickstarter to the Blockchain Revolution.

Kickstarter has been around for more than a decade now, and ever since its launch, it has been at the epicenter of the crowdfunding revolution, persuading independent creators to build their dream projects and cut out profit-taking intermediaries. Without a doubt, Kickstarter has spawned several remarkable projects like the Oculus VR, Peloton, and many more.

For Luke Lango, Senior Investment Analyst, the crowdfunding spirit of Kickstarter shows the situation in today’s digital economy precisely, adding that although it’s a tough pill to swallow, crowdfunding has lost its spark in recent years. There are far more not-so-successful stories for every success story, with some high-profile campaigns burning through Kickstarter cash only to never see the light of day.

As Kickstarter’s decline became more pronounced, it eventually convinced its investors that it was not a hypergrowth company after all. Essentially, it changed its designation to a public benefit corporation and began paying shareholders a dividend rather than reinvesting its profit toward the company’s growth.

Shifting to a relatively current method, Kickstarter grabbed headlines by letting their money flow through decentralized autonomous organizations, more commonly known as DAOs. Lango states that traditional crowdfunding is outdated, and DAOs are where it’s at. Although surprising, it’s an inevitable end, considering how fast technology is evolving.

While many are not exactly thrilled at Kickstarter’s sudden decision, it has become apparent that blockchain technology has reshaped the way the metaverse works as more and more centralized companies adopt the idea of belonging to a blockchain. It would seem daunting to think about, but Lango says it’s no different from how the internet gained mainstream acceptance. 

There has been a lot of talk about the rising blockchain adoption rates and how it will eventually set the stage for cryptocurrencies to soar, just like how the internet did way back in 2010. However, the only difference is that the global blockchain takeover will happen much faster than the latter did, as it took the internet about 30 years before becoming prevalent worldwide. Lango believes that cryptocurrencies, decentralized finance, and decentralized applications will do the same in just a mere ten to fifteen years and adds that by the early 2030s, most of the world will hold at least some money in cryptos. As a result, it won’t take long before merchants accept payments in cryptocurrency.

Lango explains that this lack of interoperability in the blockchain world is a massive barrier to consumer adoption. Therefore, the Blockchain Revolution needs to figure out for regular consumers to feel less intimidated by everyday use.

Opinions expressed by Meta Digest contributors are their own.