How can you use Web3 to crowdfund more efficiently and transparently in blockchain?

Web3 is not just a term defining the new Internet paradigm; it is a whole new reality with its own, "decentralized" and "just" philosophy.

Web3 represents the next evolution of the internet, focusing on decentralized technologies and fostering trust and transparency. Unlike its predecessor, Web2, which relies heavily on centralized entities, Web3 uses blockchain and smart contract technologies to create a more democratic and peer-to-peer ecosystem.

Web 3 is a standard that enables real communication Communication that does not need an intermediary and is transparent. In Web 3, you are the representative and owner of your own identity, and unlike Web 2, large multinational companies don't define your identity as they like. Web 3 is powered by blockchain and the philosophy of blockchain is decentralization and transparency

Throughout the progression from society 1 to 3, spanning the discovery of electricity, approximately 10,000 years elapsed. Moving from society 3 to 4, marked by the emergence of the internet, took roughly 200 years. Now, transitioning from society 4 to 5, encompassing advancements like web3, AI, metaverse, and blockchain, is projected to take only 20 years. So, what exactly is web3? It represents the subsequent evolution beyond the internet. That's rapidly growing.

?? Web3 is new way of interacting with internet/applications which is completely transparent, secure, decentralized and which works without any intermediaries. ??♂? Here applications are called DApps, backend functionalities are called Smart Contracts and those authorities who maintain are called as protocols.

Web3 crowdfunding leverages blockchain technology to create a transparent, decentralized platform where projects can raise funds directly from a global community. By using smart contracts, Web3 platforms automate the fundraising process, ensuring transparency in fund allocation and distribution. This method allows backers to track their contributions and see real-time progress, as seen in platforms like Gitcoin, where contributions to open-source projects are made transparently and efficiently.

? Web3 crowdfunding platforms can reach a worldwide audience, breaking geographical barriers and allowing projects to access a diverse pool of potential backers. ? With blockchain, every transaction is recorded on a public ledger, offering unparalleled transparency in how funds are raised and utilized. ? Web3 enables direct interaction between project creators and backers, minimizing the need for intermediaries and reducing associated costs. ? Smart contracts automate processes like fund release upon reaching milestones, ensuring efficiency and adherence to agreed terms. ? Projects can offer digital tokens to backers as rewards, providing them with potential future value and a more engaging investment experience.

Tokenization plays a crucial role in Web3 crowdfunding. By issuing tokens representing ownership or participation rights, projects can incentivize backers and align their interests with the success of the venture. These tokens can be traded on decentralized exchanges, providing liquidity and flexibility for contributors.

In practical terms, the idea is to leverage web3 crowdfunding to establish and develop a project through community support. It mirrors the crowdfunding excitement of platforms like Kickstarter but operates on the blockchain, adding a new dimension to the process. It's an exhilarating concept with the potential to transform how projects are funded and brought to life.

Web3 crowdfunding transforms the crowdfunding landscape by reducing fees, providing transparent campaign progress, empowering creators and backers with more control, offering innovative concepts like tokenization and gamification, allowing for flexible campaign design, and ensuring trust and accountability through blockchain technology. These advantages collectively democratize crowdfunding and benefit both creators and backers. 1. Lower Fees 2. Enhanced Transparency 3. Creator and Backer Control 4. Innovation Opportunities 5. Flexibility and Adaptability 6. Trust and Accountability

Web3 Crowdfunding offers a way for projects looking for funding to be in control of terms, the timeline, and the rewards in the crowdfunding campaign. This approach allows startups to execute on creative ways to reward backers with exclusive perks, collectibles, or tokens delivered automatically onchain. Web3 crowdfunding also leads to a direct line of communication between backers and those looking for funding, helping startups avoid the risk of having their campaign fail due to a platform's algorithm which often limits their reach behind pay walls. Lastly, one of the biggest benefits of web3 crowdfunding is that the technology allows for true peer-to-peer transactions so startups can be paid accurately, instantly, and transparently.

?? If you want to raise funds for your project, you can use existing platforms such as Gitcoin, Binance Launchpad, BSCPad, Dao Maker and countless which are also known as IDO platforms. ???? If you want to create such platforms, you have to write a smart contract using Ethereum, Solidity, OpenZeppelin to receive funds, frontend to interact with this smart contract and a hosting platform make this platform live.

Consider integrating a 'Real-Time Funding Tracker' in your Web3 crowdfunding platform, where backers can view live updates on funds raised, and a 'Community Voting Mechanism', where backers have a say in key project decisions. This approach not only enhances transparency and efficiency but also actively involves backers in the project's journey, creating a more engaged and committed community.

Numerous projects emerge each month, but a significant 90% of them turn out to be fraudulent. If you're considering crowdfunding in the realm of web3, it's crucial to have a clear understanding of the purpose and potential benefits for the community. Take it a step further by engaging in discussions with experts and seeking their insights based on their experiences. The landscape in web3 is distinct, so safeguard your reputation by not diving in impulsively due to initial excitement or unwarranted optimism – what seems promising at first may not necessarily prove successful.

Most of the crowdfunded projects closes in few years due to lack of good team, weak foundation, bad product. I would suggest before going to crowdfunding, build a strong team with strong foundation of the product and a will power to work even in the bad conditions.