Tech

Kickstarter and Discord Face Backlash for Switching to Crypto

Chris Ratcliffe | Bloomberg | beautiful pictures

When Kickstarter revealed its ambitions to develop a blockchain-based crowdfunding system, the company described the move as a way to push creators closer to their audience.

“Backers will be able to more easily discover and engage with projects, have better control over their data, and have more powerful tools to gauge trustworthiness and viability.” at of a project,” Kickstarter said in one blog post in the first day of this month.

The response from users was hardly the kind of reaction Kickstarter had hoped for.

ONE tweet by the company announcing the news was met with immediate backlash from Kickstarter customers, who threatened to abandon the service, citing concerns about the cryptocurrency’s environmental impact.

Bitcoin and other digital currencies required huge amount of electricity to process transactions and mint new currencies. For its part, Kickstarter says it will use Celo, a “carbon negative” crypto payment platform, for the initiative.

Kickstarter envisions the new crowdfunding mechanism as a “decentralized” protocol that will make it easier for anyone to raise capital for projects, even outside of its own platform. The end goal is to migrate your entire website to the new infrastructure.

‘Web3’

The Kickstarter proposal is part of a bubbling new movement in the tech world known as Web 3.0, or “Web3”.

Proponents of Web3 argue that today’s online platforms are too centralized and controlled by a handful of large internet companies, such as Amazon, Apple, Alphabet and parent company Facebook Meta.

Like “reverse“offered by Meta, Microsoft and others, Web3 is still a vague concept.

Most proponents describe it as a decentralized version of the internet based on blockchain, the technology behind many major cryptocurrencies. You can think of blockchain like a ledger of transactions that is constantly being updated by many computers around the world.

It attracted a lot of interest – and money – from venture capital firms like Andreessen Horowitz and big tech names like Twitter and Stripes. Some Twitter conversations about trends are from people with NFTs, or token is not replaceable, like their profile picture.

Kickstarter isn’t the first to experience backlash over a company’s move to the Web3.

Discord, the online chat app, recently unveiled several features that allow users to connect crypto wallets to their accounts. Tools, displayed in a tweet of CEO Jason Citron, was met with swift backlash.

Some users have raised concerns about the potential for fraud and money laundering in cryptocurrencies and NFTs, while others have expended large amounts of energy required to process transactions on the blockchain.

“We have no current plans to ship this in-house concept,” Citron said in a statement react.

“Right now, we’re focused on protecting our users from spam, scams, and fraud. Web3 has a lot of good things, but there’s also a lot of problems that we need to address at our scale. There will be more soon.”

What does it mean

Big companies and investors with big pockets are raving about Web3. But there is a difference between how experts in the technology and financial industries view cryptocurrencies and the perception of the technology from the public.

With cryptocurrencies, the primary use case among consumers continues to be speculative trading. And there is still a huge gap in education. According to the UK’s Financial Conduct Authority, 69% of people under 40 don’t recognize cryptocurrencies not a regulated product.

David Chaum, an American computer scientist and digital currency pioneer, told CNBC via email: “Clearly there was a gold crash… that led to speculative investing.

Chaum is best known for inventing an untraceable electronic money system in the 1980s called e-cash. He added: “General skepticism about ‘cryptocurrency’ and digital money has been around for as long as I can remember – long before there was bitcoin.”

Several large companies, including Tesla, PayPal and Meta, recently dabbled in crypto.

Such moves have helped push the price of bitcoin and other major cryptocurrencies higher this year, with investors betting on their potential to achieve mainstream adoption.

But if Kickstarter and Discord’s efforts to get into the market show anything, this goal is still far from a reality.

https://www.cnbc.com/2021/12/18/web3-kickstarter-and-discord-face-backlash-over-moves-into-crypto.html Kickstarter and Discord Face Backlash for Switching to Crypto

Sarah Ridley

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