Blockchain Platform Waves to Create Kickstarter’s Killer.

Creators of decentralized blockchain platform Waves intend to make blockchain-based crowdfunding a mass phenomenon.

According to the project’s team, existing blockchain-based crowdfunding solutions still have inappropriately high entry threshold, as they require knowledge of cryptocurrencies, comprehension of their functioning, and lots of others specific aspects of the industry.

Waves’ initial coin offering (ICO) will take place from April 12 to May 31 this year. Those who buy Waves tokens in the first day will have a 20% bonus. Participation in the campaign in April offers a 10% bonus, while those who buy tokens from May 1 to May 15 will have a 5% bonus. Following the ICO, owners will have an option to withdraw the coins from the platform.

Classic Crowdfunding and its Disadvantages

Crowdfunding campaigns of 2015 have attracted in excess of $34 billion, which is almost two times as high than in 2014.

The key disadvantage of traditional crowdfunding platforms is that investors cannot withdraw from a project. Moreover, an investor usually gets no useful things in exchange for a particular investment. In most cases, it’s a t-shirt, branded pen, or some other useless souvenir.

Certainly, sometimes investors have preferential access to the startup’s projects, which is most interesting in case of technical novelties and gadgets.

However, the traditional model is still vulnerable and disadvantageous. The thing isn’t even in a demand for decentralization, which, to be honest, is of no interest to an average user, but in an opportunity to change your mind or to obtain possibly small but stable dividends. This shapes a demand for hybrid solution between traditional crowdfunding and p2p-investment.

Demand for Kickstarter Killer App

Some blockchain-based systems are known for offering a solution to the aforementioned problems. One may recall NXT Asset Exchange, Colored Coins, Colony, or BitShares. All of them implied that a user could issue their own cryptoshares/tokens and launch a crowdfunding campaign. After the campaign has been finalized, tokens could be traded on secondary market in some cases, which effectively covers the investment withdrawal issue.

However, interaction with most of those platforms was related to the requirement of buying yet another cryptocurrency, or running the campaign in cryptocurrency, whose volatility entails additional risks.

As for user-friendliness or comprehensive interface, there’s almost nothing to say. Thus, having all blockchain-based crowdfunding’s advantages in mind, one should agree that it remains a complex and unfathomable for those seeking an investment in their project.

“If one doesn’t want to delve into the work of cryptocurrencies, or fight their way through a bulky interface of a platform to launch a crowdfunding campaign, they will never end up at a decentralized platform. That’s why we see a pool of projects on Kickstarter expanding every year, along with a truly disheartening dynamics at its blockchain counterparts,” says Alexander Ivanov, founder of Waves.

Crowdfunding with Waves

Waves offers users to run a crowdfunding campaign with fiat currencies, Bitcoin, and the startup’s native tokens. Thus, a customer is completely free to choose the way of investment.

“Functionality inherent in Waves is mainly inspired by NXT, which became popular due to issuance of tokens and decentralized trading of Asset Exchange. The key difference from NXT here is in our support of trading in fiat. Upon the launching, Waves tokens will be available for USD and EUR,” the platform’s blog reads.

Lightweight wallet of Waves will be in fact a browser plugin available as a Chrome extension. The wallet will allow working with fiat currencies, bitcoin, and Waves tokens. A crowdfunding platform will be available on another tab of the wallet. Thus, management of money and investment will be organized as a simple process accessible in a few clicks.

The lightweight version of the wallet doesn’t require a user to download the complete blockchain. One may just connect to a random node to get the required data. For those distrusting everyone and wanting to use their own node to connect the lightweight client, it provides an option of connecting to the preferred node.

All tokens issued on Waves will be traded on secondary market, a decentralized exchange with a reputation system. The developers also consider adding blockchain tools to comply with AML and KYC regulations.

Source: http://forklog.net/blockchain-platform-waves-to-create-kickstarters-killer/

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