Is Blockchain The Future of Crowdfunding?

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The term ‘crowdfunding’ has merely been a fancier way of describing all types of fundraising, donations, and financing in one concept. It is under a broad umbrella for projects, nonprofits, campaigns, and niched down to households issues. It is not remotely similar to investing; it is simply financial aid for a specific cause or purpose.

We usually feel skepticism when placing a donation or help fund anything, which is understandable due to fraud, money laundering, and other false claims that we hear about on a daily basis. Once financial aid is in place for a particular cause of function, it is almost impossible to track it forward to where it really went. They say “every dollar counts” right? What if millions of people donate just one dollar for an alleged campaign that probably costs a quarter of a million, who is left with $750,000 and what are they doing with it? Their running costs could not possibly require more than the cost of the campaign; a situation like that is always left with unanswered questions and barely any facts.

The Blockchain era has a clear purpose to exist and a main one is to put a stop to anything that sounds or looks fishy. The best of us are cynical by nature, for the most part. Nonprofit organizations and NGOs have a reputation for their lack of truthfulness because they run on funds and donations by the people. Organizations like those are especially difficult to trace. While Blockchain is concerning to some people due to the worrisome invasion of privacy, it is anything but something that does not encourage security. The latest innovation has been designed by the people and is to be placed between us to achieve maximum efficiency for our own sake, especially to protect our money since our most trusted money holders being the banks don’t always succeed to do so.

Other than the obvious economic issues that arise with Crowdfunding, geographical and political barriers are also to watch out for due to the fact that the entire process is done through the Internet. Blockchain aims to challenge those barriers and really minimize them as much as possible for the best interest of people.

Blockchain is not only an efficient tool for fundraisers; it is also for the people and organizations in need of those funds. You could imagine that the other side of the table also needs some sort of validation that the helping funds should also be coming from a clean source and not from somebody who is laundering their money in a business. The receiver is also prone to giving out incentives to the funders, and with Blockchain in the mix, it will at least not be a random giveaway scenario.

There is great value in the collection of data for the sake of business, good causes and anything that requires funding. Blockchain was not invented to destroy people’s lives, its purpose was to create a much more secure and protected environment when it comes to people’s money. Crowdfunding is a humanized and alternative for traditional financing, and yet still people fail to use it in the most ethical of ways defying the purpose of the Crowdfunding phenomenon.

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