Blockchain Startup Takes on Mainstream Crowdfunding Sites to Cut Number of Failed Projects

A new blockchain platform is vowing to take on established crowdfunding sites - and argues that their lack of accountability means greater numbers of projects fail to deliver what they promised.

Pledgecamp says its approach involves offering transparency through the form of smart contracts - and ensuring that entrepreneurs and the platform they host their projects on are equally invested in a campaign's success.

According to Pledgecamp, blockchain is the only way to deliver this concept, as it removes centralization and gives power to those who have put their funds at stake.

The level of Backer Insurance associated with a project can be decided upon by the campaign creator - and those who volunteer more of the funds to be protected in Backer Insurance subsequently benefit from lower listing fees.

Pledgecamp is available hereThe startup cites research that suggests as many as 85 percent of campaigns end up delaying delivery, while up to 14 percent fail altogether.

According to the blockchain platform, this amounts to a "Trust problem" that needs to be addressed if the industry is going to thrive - enabling businesses to secure funding away from financial institutions and validate their product ideas.

The startup argues many crowdfunding sites have failed to innovate and offer technical features that benefit entrepreneurs and contributors alike.

Pledgecamp says its ecosystem will offer resources for project creators in a "Secure and decentralized way" - and give them the chance to hire skilled workers who can help them achieve their goals on a temporary basis in their "Gig economy."

The startup is designing the platform in partnership with MetaLab, which has helped well-known products such as Slack and Coinbase.

In the run-up to this launch date, it plans to create a Knowledge Center for project creators, implement the website's user interface, and complete work on the platform's back-end and smart contract functionality.