Key Insights:
- Lightning adds a layer of resistance and reduces third-party interference in crowdfunding
- Lightning enables live and updated crowdfunding in a decentralized space
- Bitcoin lightning has proven that blockchain crowdfunding surpasses other methods of raising funds.
Crowdfunding continues to prove that it is a viable way for individuals or organizations to create awareness about a project and raise funds. The motive behind a crowdfunding project could be social, cultural, or profit motive.
Similarly, crowdfunding occurs online, where investors connect with entrepreneurs or startup founders. These entrepreneurs will launch the crowdfunding project and woo investors in exchange for a service or equity.
Hitherto, crowdfunding projects were launched on the internet and social media— blockchain technology has now become a great tool for hosting crowdfunding projects. That is, Blockchain technology offers a unique, independent, decentralized and transparent system.
Significantly, developers in blockchain technology, through innovation, have developed an additional layer towards full decentralization and censorship resistance of crowdfunding. We refer to this additional layer as lightning. A popular cryptocurrency token that adds the lightning layer is Bitcoin.
Ways Which Lightning Can Transform Crowdfunding
Bitcoin adds a layer of censorship resistance to crowdfunding. This makes Bitcoin the best blockchain protocol to launch your crowdfunding project.
Crowdfunding in blockchain enables you to host the project on a third-party platform, while Bitcoin donations remain decentralized— because they are peer-to-peer. Therefore, every donation to the project becomes censorship resistant.
Bitcoin’s lightning layer has helped and continues to transform blockchain-based crowdfunding. Experts consider it a game-changer because you can now receive donations via third-party websites. Similarly, internet users can donate across various social media platforms.
It is interesting that lightning has made donating to a crowdfunding project easy. You can receive donations directly by posting your static lightning address or QR code on tweets and blog posts. With the lightning layer, donors do not have to log in to the crowdfunding platform to donate.
Furthermore, @KhatiDevendra tweeted that lightning enables live and updated crowdfunding in a decentralized space. It limits the impact and interference of third parties. Significantly, it has helped to reduce government censorship and overreach on crowdfunding projects.
This exceptional feat has once again restored internet users’ confidence in blockchain technology.
You would recall that a recent censorship event occurred in Canada; in the aftermath of the Trucker protest.
Protesters opened a crowdfunding platform on Gofundme. Instead of the protesters receiving the donated funds, the Government mounted pressure on the platform to freeze the donated assets.
Consequently, Tallycoin came to the rescue of the protesters. This bitcoin-only crowdfunding platform ensured the protesters received the funds in Bitcoin. Eventually, Tallycoin closed the project while the protesters got every penny donated to them.
Conclusion
Crowdfunding helps to reach a wider audience and achieve your goals with public donations. Since government interference, censorship and overreach are becoming worrisome, introducing the lighting layer has become expedient.
Since then, crowdfunding has continued to move to greater heights with censorship-resistant features and transparency.
