How Lightning Is Revolutionizing Crowdfunding
Source: Bitcoin Magazine – Bitcoin News, Articles and Expert Insights – Read More
Lightning enables live, updated crowdfunding in a decentralized manner that limits the impact of third parties involved.
This is an opinion editorial by Kroum Kroumov, a copywriter, editor and UX writer.
Crowdfunding has always been a great way to get funding for your work and to send your ambitions flying. Most internet crowdfunding platforms haven’t kept up with changes in politics, technology and the advances of online interaction, mainly the growth of online communities. Government censorship and overreach have played a critical role in sparking a need for innovation in crowdfunding.
Here, we will explore how Lightning is redefining crowdfunding, what new features are becoming possible, and which crowdfunding platforms are taking the lead in innovation and raising the bitcoin/lightning ecosystem to new heights.
Traditional Crowdfunding Platforms Are Outdated
Unfortunately, not everyone is keen on new technology, and many institutions and companies will fight to keep the status quo, since they are deriving benefits from it. Therefore, innovation often becomes a threat in their eyes. Governments, with their push to keep a fiat system running, are an example of this. Another example is government attempts to digitize fiat currencies through CBDCs to keep their fiat system going.
Crowdfunding platforms have also been slow in adopting bitcoin. We could easily attribute the slow pace of bitcoin acceptance by crowdfunding platforms to government rhetoric, which has sown the seeds of uncertainty. Regardless of their reasoning, platforms that do not adapt will become outdated, because they will miss out on the possibilities that Lightning brings with it.
Government Overreach And Censorship
Nothing has proven that we need funding decentralization more than recent censorship events, like the trucker protest in Canada. A popular crowdfunding platform, GoFundMe, froze the donated assets of protesters, giving in to government pressure. This protest and the resulting government reaction, namely the censoring of donated funds, proved that governments will reach into people’s pockets to try and stop our right to disagree.
A bitcoin-only crowdfunding platform that stepped up to the plate during the protests was TallyCoin. TallyCoin enabled the protesters to receive funds in bitcoin. This showed the world at large the censorship-resistant properties that bitcoin carries with it. As long as the project remained open, the truckers could receive funds.
As unwarranted as the government overreach was during the trucker protest, full decentralization of crowdfunding platforms is not something that anyone is looking to do. The funds are censorship resistant, while the project is not. TallyCoin did eventually close the project, but the truckers received their funds and no one could take their money away while the project was active on the website, since bitcoin transactions are peer-to-peer.
A crowdfunding platform cannot take the responsibility of helping fund illegal activity, in this case hosting projects they would deem criminal. While we can decentralize money, making it censorship-resistant thanks to bitcoin, it is an issue to decentralize the content of the platform entirely.
Bitcoin adds a layer of censorship resistance to crowdfunding. The crowdfunding platform hosts projects in the role of a third party, while bitcoin donations remain decentralized, since they are peer-to-peer. Therefore, the money a user receives is as censorship resistant as bitcoin itself.
The Lightning layer is a game changer because it allows for donations to come in via third-party websites and various social media platforms. For example, you can receive donations directly in your wallet by posting your static Lightning address or QR code on tweets and blog posts. This means that a user wouldn’t need to log in to the crowdfunding platform to donate to your cause.
One platform that is pushing the agenda for Lightning integration is Geyser.fund. This platform is a good example of what the new generation of dynamic crowdfunding platforms look like. It is a Lightning-native crowdfunding platform that takes advantage of innovation opportunities that Lightning provides, including:
Lightning Addresses: Every project on Geyser gets an integrated Lightning address that creators can leverage.Static QR codes. Creators receive money directly into their wallets from their social media accounts by posting their static QR code, thus eliminating the need to log in to Geyser. This lets you receive funds from anyone, anytime and anywhere.WEBLN browser integration. If you don’t prefer QR codes, you can use WEBLN browser integrations like Alby to receive direct payments through your permanent Lightning address.Live fund updates. The project page updates as soon as the funds come in. This shows users how your project is picking up steam.Fully borderless crowdfunding. Thanks to Lightning, you can send and receive funds for your project no matter where you’re based, and from anywhere where users can scan your code to send you tips.Engagement with donors and the community. Project owners can write articles and post updates about their project page to keep their community in the loop and engaged. This way, the project is in a recurring, living state.Interoperability with podcasting 2.0: Get tipped sats for your crowdfunding campaign through the Fountain podcast app.Censorship-resistant funding. The funds go directly into your Lightning wallet without going through the third party, in this case, Geyser. The platform only hosts the project, not the funds.
Dynamic Crowdfunding With Lightning
If you think about it, all traditional crowdfunding platforms look alike: they are static pages. There is no engagement between communities and little or nothing happening live on the screen.
On the other hand, Lightning-enabled crowdfunding websites are dynamic. Everything is living, engaging, changing and interacting with the users on both ends. Dynamic crowdfunding broadens your project’s reach and brings in more funds through interaction and interoperability through social media platforms and browser integrations.
The traditional crowdfunding model has become outdated because of government overreach and the technological opportunities provided by the Lightning layer of bitcoin. Now bitcoin/Lightning-native crowdfunding platforms such as Geyser.fund, TallyCoin, and OpenSats are taking advantage of innovation opportunities that Lightning provides to revolutionize the field.
Through the Lightning layer, crowdfunding is becoming decentralized, censorship-resistant, peer-to-peer and dynamic. We immediately reap the benefits of better marketing outreach through social media, diversifying ways of receiving payments, interoperability and community engagement — all of which improve funding, viewership and accessibility.
So, why not take advantage of it? If you’re looking to help fund a cause, you can now do it from your favorite social media platform, and if you’ve already got a project, share it on social media and get funded. It’s time for crowdfunding to evolve through Lightning interoperability and innovation.
This is a guest post by Kroum Kroumov. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.