Ethereum-Based WeiFund Positions as Web 3.0 Crowdfunding Pioneer
Building on Ethereum, Dodson was able to code the crowdfunding platform in under 150 lines of smart contract code.
Dodson hopes that WeiFund will become the vanguard DApp of decentralized crowdfunding, making it free and accessible to anyone.
Traditional crowdfunding is centralized, provides a service, charges fees, and acts as a middle party or matchmaker. Decentralized crowdfunding accomplishes the matchmaking by replacing that middle party with software at much less cost and few barriers.
For crowdfunding, the future will become so basic, simple, and clear, that this new philosophical paradigm will appear to materialize without much work at all. The bulk of the focus of business will shift from intermediaries to content creators, innovators, and a marketplace of participatory consumers.
WeiFund is apparently more than just a crowdfunding utility for raising capital. As it is extensible and modular, other smart-contracts can interface interdependently with its core. Users can start equity crowdfunding campaigns without the traditional hurdles associated with share issuance, management and ownership.
On decentralized platforms like WeiFund, funding campaigns can be hyper-financed, rapidly implementing complex token or ledger systems, and expanding the set of available options for investors, contributors and campaign operators.
WeiFund and similar decentralized crowdfunding platforms will leverage the inherent nature of smart contracts to open the front door of this technology. From here, we can begin to discuss what future we want to build for ourselves. While decentralized crowdfunding may at first only address a niche in consumer or organization market demand, it is possible that with increasing market demand, WeiFund or similar services could become the new standard for contractual crowdfunding.
WeiFund’s features include inherent extensibility, escrow solutions, token creation, open source components, and security from Ethereum cryptography. The cost of using WeiFund includes transaction fees for notating funding campaigns as well as contributions to the Ethereum blockchain.
Smart tokens or assets created on WeiFund can apparently be offered in a short amount of time on the EtherX exchange platform.
Like other DApps under the ConsenSys umbrella, Ethereum is the important underlying technology, as its smart-contract ecosystem is designed to automate many intermediary business processes in a transparent and open manner.
The advent of WeiFund may be opportune as the number of crowdfunding platforms in the cryptocurrency sector has been shrinking rather than growing.
Swarm, which raised money for itself, and Koinify, the platform used by Factom and GetGems, have pivoted away from the decentralized or distributed crowdfunding model. Another blockchain-oriented platform, Blocktrust, has been around for over a year and has only represented SendChat in its funding campaign.
WeiFund is designed to be more of a smart contract-driven automated utility than a solution provider that crowdfunds and audits development milestones like Koinify or Swarm were meant to be. Although it has less functionality and only uses bitcoin, the Lighthouse app, designed by Bitcoin XT lead Mike Hearn and released into beta early in 2015, might be a competitive example to WeiFund as it is designed to be simple and suitable for individuals.