Crowdfunding has become a popular way to get funding for a new project or startup business. It’s an excellent way to gauge interest since people will only fund what they’re seriously interested in. However, not all crowdfunding platforms are equal. Each one specializes in a different purpose.
Same holds for ACG Network Crowdfunding platform– CatchSeed, a decentralized digital content crowdfunding platform, has entered the closed beta phase and we are conducting beta testing for invited creators, and officially releasing in early February.
What does it mean by “Based on Blockchain”? How it will be more effective?
Now it’s the era of the blockchain, which is taking the digital content industry to new heights of digital content distribution. Taking account of following revolutionary properties of Blockchain technology such as peer to peer interaction, trusted algorithm, unforgeable, open, borderless, transparent, neutral, immutable, unaltered transaction history and being censorship persistent, ACG Network is blending blockchain technology in with digital content Crowdfunding platform to get the most out of it.
CatchSeed is an important part of ACG Network’s Eco-system as depicted by following picture.
For our users information, here are different types of crowdfunding exist.
Creditor Crowdfunding, I will give you money, then I will pay back my principal and interest.
Equity Crowdfunding, I will give you money, you give me the company shares.
Returning back Crowdfunding, I will give you money, give me a product or service.
Donation Crowdfunding, I will give you money, don’t give me anything.
CatchSeed will lay out the rules with the help of sponsor/content creators to what kind of crowdfunding type is most suitable for project type.
How CatchSeed is unique and different from others crowdfunding platform?
Let me take an example of Kickstarter.
Kickstarter is the world’s largest and most well-known crowdfunding platform, positioned as a “crowdfunding website platform for companies with creative solutions”. Platform users are divided into people who are eager to create and have innovative ideas, and other are willing to fund them. Unlike fundraising or investment in many forums, Kickstarter claims no ownership of the project and the work they produce. Projects launched on the site will be permanently archived and open to the public. After the fundraising is completed, the project and uploaded media materials cannot be edited or deleted from the website.
Biggest Problem #1
But the biggest problem is that no one can guarantee that the money raised on Kickstarter will be used to implement the project. In other words, donors do not have an effective way to understand project progress and fund allocation. Kickstarter officially recommends that donors carefully judge and support the project, and simultaneously warn the project sponsors that if they fail to honor the promise, they are hurting the donors emotionally and financially. It is undeniable that Kickstarter is an important reference for the CatchSeed prototype.
If the content creator cannot reasonably allocate funds or even divert the funds for other purposes, it will affect the enthusiasm and investment motivation of the donors. All kinds of lack of integrity will affect the sound development of the crowdfunding investment market.
Solutions to above Problems
The birth of CatchSeed is based on the basis of blockchain technology, using decentralized means to alleviate the lack of qualified investors in the existing centralized crowdfunding platform, the mistrust of financiers, and the lack of supervision.
How CatchSeed will work?
Dividing the whole CatchSeed crowdfunding part in following three processes for our readers to better understand the flow of ACGN Crowdfunding Platform.
The emergence of blockchain technology provides strong technical support for copyright protection. When the content creator publishes the original content on the CatchSeed platform, the content is synchronized and backed up on multiple nodes. The winding is to write the original content hash value, time, author and other information on the chain for copyright submission. Based on the characteristics of the blockchain, the registered data will not be lost. Even if it is maliciously falsified, other normal nodes will correct the forged data.
02- Financial Security
The crowdfunding process on CatchSeed has no human intervention and solved the trust problem in fund custody. As a traditional crowdfunding platform and blockchain crowdfunding platform, CatchSeed will initially accept both US dollar and digital currency support. Before the project is released, the sponsor and the platform jointly develop the fund allocation rules. If the project sponsor chooses the digital currency as the settlement currency, after the crowdfunding is completed, the funds raised will be automatically distributed through the smart contract. The currency is not locked until the agreed date, and the date is automatically issued.
03- Communication Incentive
The CatchSeed platform has specially added a communication incentive mechanism to promote the progress of projects and fundraising. The crowdfunding promoters can choose to use a certain percentage of the raised funds for communication incentives, and set the “communication mission” to encourage users to spontaneously spread in their own social circle, thus achieving project awareness and expanding new users and projects.. After the user reaches a contribution to the project, a certain amount of digital currency is automatically issued as a return. In general, projects with incentives have a greater chance of success.
Whether you are a singer, Film Producer, Professional Animator, Graphic designer or comic writer, come join CatchSeed. If you are interested in becoming the first creator of the CatchSeed platform, or if you want to try the CatchSeed beta, please feel free to contact us today or approach us through our following social media community in the footer of this page, waiting for you!