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In crypto your "trusted processor" could simply be a permissionless smart contract that releases funds if payments hit a certain threshold in a certain timefram
by tornato7 4y ago
In crypto your "trusted processor" could simply be a permissionless smart contract that releases funds if payments hit a certain threshold in a certain timeframe. Or if you need some decision making in the mix it could be run by a DAO, similar to how money was raised (and then returned to users) by ConstitutionDAO.
- makeitdouble 4y agoIn the current scheme, if Kickstarter released the funding, to then realize within days that the campaign was fraudulent in critical ways and/or the system was compromised to get the funds to a unrelated entity, they'd revert the transation at the processor level and make whole everyone involved in a relatively light process. The options to game the system at scale are limited (by design), and that builds trust in the processors. The automatic trigger baked into the system that you describe feels to me way easier to game, with rollbacks so expensive to do that it wouldn't happen short of something catastrophic directly affecting the very powerful entities. So not just for an eggregious scam affecting a few thousand users...
- tornato7 4y agoIt goes both ways: Kickstarter projects often face issues because a backer cancelled charges weeks after receiving their reward[1]. If you browse /r/shittykickstarters you'll see that Kickstarter struggles to police scams even using traditional payment rails. I think crypto has the potential to make this problem better, not worse. Funding could be released over a period of time or be milestone-based. 1. https://www.wnycstudios.org/podcasts/otm/articles/new-kind-kickstarter-scam-backer https://www.wnycstudios.org/podcasts/otm/articles/new-kind-k...