Thursday, 19 February 2015

Decentralized Crowdfunding: What’s It About?

Decentralized Crowdfunding: What’s It About?



The world’s largest crowdfunding websites require registrants to pay after listing and fundraising. Often, crowdfunders must also meet a set of qualifications to launch, such as project type, financial goal and market readiness. Doing so reassures donors and investors of legitimacy and safety. To act as the mediator between crowdfunder and investor, the portal typically takes a cut above 6% plus transaction fees.
In the past, some platforms have experimented with flat rates and no fees. Interestingly, a new trend aims to go further, introducing decentralized crowdfunding. Decentralized crowdfunding builds off bloackchain technologyand enables crowdfunders to setup campaigns in environments undictated by strict requirements and ardous registration processess. Moreover, since rooted in bitcoin, the model eliminates the need for moderation and thus vetoes portal fees. So far, this form of crowdfunding suits “micro-projects” best, though it’s quickly gaining traction on the market.