The Lightning Network received a boost in terms of liquidity and startup potential after the launch of a modular crowdfunding protocol. The innovative minds at Geyser want to make funding the projects you like easier than ever for users and developers. Here’s how their latest LN integration helps to make their dreams a reality.
Modular Crowdfunding
The concept of modular crowdfunding continues to gain momentum in the market. This strategy enables startups to utilize pre-built modules to streamline the crowdsourcing process. Modular crowdsourcing options are more affordable because you only integrate the features you need.
Geyser is a pioneer in the crowdsourcing sector. The platform entered the market in 2022 and has seen considerable adoption since its launch. Today, the network has a strong community of users who leverage its services. The community includes + 50k contributors, 1,000 projects, and facilitated 30 BTC (~$2,125,000) worth of donations,
Problems Geyser Helps to Solve
Geyser’s unique approach to crowdfunding brings with it a lot of advantages. For example, it opens the door to billions of unbanked and underbanked individuals. This growing group of people has been excluded from the centralized economy due to many factors ranging from war to their country of residence, or even their credit history.
Source – Geyser
Crowdfunding platforms with stringent KYC/AML practices are highly restrictive across the board. They decide who they let join these events and they are even more picky with what platforms they allow to access public funds. In this way, they play gatekeeper to the market.
Censorship
Censorship continues to be a major problem for donors and platforms seeking funding. In politically contested environments, or whenever someone wants to contribute to a project, they should have the option to do so privately. Geyser provides a reliable method that promotes privacy using the Lightning Network.
These services will see growing demand as the political atmosphere gets more tense globally. As such, Geyser is well positioned for the market changes ahead. Its focus on privacy and security continues to gain attention.
Block Illegal Activities
One concern brought up in the past is the use of crowdfunding platforms to raise liquidity for illegal actions. Geyser prevents the use of its services for funding illicit material, drugs, or arms to prevent these risks. These steps keep the community safe.
How Geyser Works
Geyser operates using blockchain technology to offer crowdfunding to an international clientele. This approach opens the door for more liquidity and a more democratic economy. According to company documentation, this strategy has been a major success.
Company reports show that +45% of funding comes from Africa, South America, Asia, and Oceania. These statistics reflect the growing demand for blockchain crowdfunding services in developing countries. Specifically, Africa and South America lead the race in terms of demand for these services.
Geyser Operations
Geyser conducts grant rounds to fund projects. What is interesting is that participants donate but their donation’s destination is decided by a panel of judges. This panel is changed frequently to ensure transparency and fairness. The goal of this strategy is to shine a light on sometimes overlooked gems.
Peer to Peer lending
One of the main advantages of this structure is its peer-to-peer nature. This approach means that funds that get donated go directly to the cause with no middleman. This strategy brings with it some huge advantages. For one, it ensures the donations reach their destination in full.
It also eliminates the waiting period that is often found with crowdfunding platforms. In some instances, a company might need to hit a certain goal or wait up to a month to access their funds. In a p2p exchange, these funds become instantly available for use.
Security
Geyser offers non-custodial funding options to the market. This approach provides a higher level of security as it ensures that the donor and the receiver never have to trust their funding with a third party. Eliminating the middleman reduces risk and eliminates theft originating from custodial structures.
What’s next
When discussing the future of Geyser, there is a lot to talk about. For one, the firm seeks to integrate other services to improve the UX in the coming months. For example, Nostr will provide profile support. This maneuver will open the door for a slew of new revenue options. Content creators will be able to add subscriptions, and even issue digital assets to followers.
Nostr
Nostr is an open protocol social media network that leverages blockchain tech. The system offers censorship-resistant and open access to the global community. Developers can leverage Nostr tools to seamlessly integrate social media options into their economies.
An advantage of this approach is the ability to leverage Nostr verification systems. This feature will streamline onboarding and connecting for the entire community which will boost the ecosystem’s onboarding.
Lending
Another crucial product that Geyser has in the works is a p2p lending protocol. This system will integrate the Lightning Network to enable users to lend out their unused Bitcoin and secure rewards in the form of interest payments.
Lending protocols are growing in popularity due to their ease of use. These systems leverage payment pools to enable anyone to lend their funding out in a trustless manner. The interest rewards generated by the pool help offset any late or forfeited loan payments. As such, users enjoy more flexibility and gain rewards using these protocols.
Geyser is set to Blow
There is a strong demand for modular crowdfunding on the Lighting Network. This latest venture is sure to raise eyebrows and the attention of the growing community of developers seeking funding. For now, Geyser is a project to watch moving forward.
