Bitcoin and crowdfunding have been a bit of a mixed bag. Various Bitcoin projects have had great success when it comes to reaching crowdfunding goals, whereas other equally promising projects won’t even reach 40% of the amount required. Regardless of all of these statistics, decentralized crowdfunding is definitely attracting a lot of attention as of late.
Removing The Need For Third-Party Support To Hold Funds
The concept of crowdfunding is a revolutionary idea, both for individual investors and aspiring entrepreneurs alike. Rather than relying on one or two major angel investors to help an entrepreneur’s idea come to fruition, every individual on this planet can back a project in exchange for items or privileges of some degree.
In recent years, platforms such as IndieGogo, Kickstarter and many others, have seen a tremendous uptake in number of users and projects being backed. But there is one major flaw shared with all of these systems: they act as a third-party, effectively controlling user funds without offering any transparency whatsoever.
Granted, it is possible to see how many people have backed a project and what their name is. But once the project has been successfully