Sigil – The Future of Crowdfunding

Originally written and posted by Saâd Khafif – make sure to check out his articles for some great crypto content!

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Blockchain, local currencies, legal framework … If crowdfunding is on the rise, it should undergo major changes in the years to come.

Why does crowdfunding meet such a demand today?

This is an old mode of financing that has flown again with technology that allows the involvement of as many people as possible. It allows savers to decide where their money goes, to re-develop the local economy and to finance projects that are more original or innovative than those that traditional institutions would have financed. It also allows the creation of new legal systems of financing (royalties, pre-sales) and communication. It democratizes systems that existed for large institutions and companies in favor of small projects, small traders and carriers of projects with fewer networks. Crowdfunding thus responds to the need for corporate financing, as traditional players no longer play their role — banks are less inclined to lend — or not large enough (business angel networks).

The Crowdfunding in 3 years

The amounts will be counted in billions. Equity (capital investment), the gift and the loan will have reached their first maturity. But beyond that, we will go from about sixty really active platforms to a score, with one or two major actors in oligopoly situation in each of the modes of financing: donation, loan, capital, royalties. This concentration of players on the market will not necessarily benefit the current leaders — in the loan, the first one year ago is today far behind the new leader. The proportion of amounts raised from individuals is also likely to grow as they appropriate this citizen participation tool, without however excluding the institutional financiers who use it today to accelerate their investment process the fees will only go from 8% to more than 20% and the amount raised will double so that the team can get trough the crowdfunding process, this is how a future would be if the landscape of technology stays the same.

Crowdfunding & Blockchain a combination like no other.

The crowdfunding will be mainly executed in decentralized electronic money type Bitcoin — Sigil (whitepaper). Upon completion of a contract, payments of dividends, interest, fees, or royalties will be triggered automatically by the blockchain. All transactions, much more secure and free, are traceable and public. Their cost will drop, and platform commissions will see a significant change. Perhaps we will even witness the end of intermediation by the platforms and the development of “self-crowdfunding”. Sigil goes a step further getting the fees to a staggering 0%fees “check the whitepaper for more information”. With such drastic changes the landscape will change and the project owners will choose the right solution for their crowdfunding needs and i predict that the Blockchain playing a large role in the crowdfunding scene in the upcoming year.

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