The Report is Generated by DrillBit Plagiarism Detection Software

Submission Information

Author Name Mayank Somani

Title Crowdfunding D-APP Using Blockchain Technology
Paper/Submission ID 898775
Submission Date 2023-08-09 15:44:57
Total Pages 7
Document type Others

Result Information

Similarity 6%
1 10 20 30 40 50 60 70 80 90

Sources Type Report Content

Student Quotes
Paper 0.36%
0.71%
Words <
Journal/ 14,
Publicatio 3.38%
n 0.64% Ref/Bib
4.22%
Internet
4.65%

Exclude Information

Quotes Not Excluded

References/Bibliography Not Excluded
Sources: Less than 14 Words Similarity Not Excluded
Excluded Source 0%
Excluded Phrases Not Excluded

A Unique QR Code use to View/Download/Share Pdf File

DrillBit Similarity Report

A-Satisfactory (0-10%)
B-Upgrade (11-40%)

6 18 A C-Poor (41-60%)
D-Unacceptable (61-100%)
SIMILARITY % MATCHED SOURCES GRADE

LOCATION MATCHED DOMAIN % SOURCE TYPE

1 abnews-wire.blogspot.com Internet Data

1

2 www.markettailor.io Internet Data

1

3 www.freepatentsonline.com Internet Data

1

4 Article Published in Entropy Student Paper

<1

5 docplayer.net Internet Data

<1

6 journals.library.columbia.edu Internet Data

<1

7 nnatapes.com Internet Data

<1

8 Whose nature of science by Bria-1997 Publication

<1

9 academia.stackexchange.com Internet Data

<1

10 ate.is Internet Data

<1

11 amle.org Internet Data

<1

12 fdocuments.in Internet Data

<1

13 REPOSITORY - Submitted to Bannari Amman Institute of Technology Student Paper

<1
on 2023-02-10 12-11

14 aanda.org Internet Data

<1
15 Dynamic stakeholder interaction analysis Innovative smart living design Publication
<1
cases by Solaimani-2013

16 ecommons.aku.edu Internet Data

<1

17 Thesis submitted to shodhganga - shodhganga.inflibnet.ac.in Publication

<1

18 www.ajpe.org Internet Data

<1
 Crowdfunding D-APP Using
Blockchain Technology
Mayank Somani
Information Science and Information Science and
Engineering Engineering.
RV College of Engineering. RV College of Engineering.
Bangalore, Karnataka Bangalore, Karnataka
mayanksomani7@gmail.com pritishraj11013@gmail.com
Abstract—The way people and businesses raise money for their
initiatives has been altered by crowdfunding, which provides a
cooperative and inclusive method of financing. It makes use of an
approachable platform where project creators may present their
concepts and get in touch with possible backers. Our initiatives
give project developers a stage on which to present their concepts
and solicit funding from a variety of sources.
Crowdfunding, as a method of raising funds for projects or
initiatives, has gained significant popularity in recent years.
However, traditional crowdfunding platforms often face
challenges related to transparency, security, and trust.
Blockchain technology offers a promising solution to address
these issues and revolutionize the crowdfunding landscape. This
paper explores the concept of crowdfunding using blockchain,
emphasizing the benefits and implications of integrating
blockchain technology into the crowdfunding process. By
leveraging blockchain's decentralized and transparent nature,
crowdfunding campaigns can enjoy enhanced transparency,
increased security, and improved trust among participants.
Smart contracts, a key feature of blockchain, enable automated
and programmable rules for fund allocation, ensuring the safety
and accountability of raised funds. Additionally, blockchain
enables the tokenization of assets, allowing contributors to
receive digital tokens representing their stake or reward in a
project. This enhances liquidity and opens up investment
opportunities to a broader range of participants.
The paper also discusses the challenges and future directions of
blockchain-based crowdfunding, such as scalability, regulatory
frameworks, and user adoption. Overall, crowdfunding using
blockchain has the potential to revolutionize fundraising by
providing a secure, transparent, and inclusive platform that
empowers both project creators and contributors.
Keywords- Smart Contract, Decentralized Finance (DeFi), Initial
Coin Offering (ICOs), Security Token Offerings (STOs),
Cryptocurrency Wallets
I. INTRODUCTION
In a world rapidly being reshaped by emerging technologies,
the integration of blockchain technology in crowdfunding
platforms holds transformative potential.
Crowdfunding, an innovative means of raising capital, has
revolutionized the way startups and other ventures fundraise
and engage with their communities. Traditionally,
crowdfunding platforms serve as intermediaries between
project creators seeking funds and backers18willing to support
them. These platforms, though effective, are not without their
limitations, such as high fees, geographical restrictions, and a
lack of transparency.
Enter blockchain technology - a decentralized, transparent,
and secure system that has powered cryptocurrencies like
Bitcoin and Ethereum. By leveraging blockchain, everyone is
standing on the precipice of a new era for crowdfunding, one
in which intermediaries are no longer necessary, transparency
is inherent, and global access is the norm.
With blockchain-based crowdfunding, anyone, anywhere in
Pritish Raj Shantanu Jha
Information Science and
Engineering.
RV College of Engineering.
Bangalore, Karnataka
jha.shantanu378@gmail.com
the world can initiate or back a project, making the
crowdfunding landscape truly global. More importantly, the
incorporation of smart contracts - self-executing contracts with
13
the terms of the1 agreement directly written into code -
guarantees that funds are released only when agreed-upon
milestones are reached. This fosters an environment of trust
and accountability, freeing project creators to focus on their
initiatives and backers to support with confidence.
This shift to a blockchain-based system represents not only a
technological upgrade but also a paradigm shift in the way
everyone views and participate in crowdfunding activities. The
marriage of blockchain technology and crowdfunding holds
great promise, poised to disrupt the status quo by creating
more equitable, transparent, and democratic funding avenues.
Stay tuned while explore this fascinating convergence of
technologies, outlining its benefits, potential challenges, and
implications for the future of crowdfunding and beyond.
Problem Statement:
To address the inefficiencies and lack of trust in existing
platforms by enhancing transparency, project discovery and
matching, credibility and investor protection. Our project's
goal is to create a decentralized crowdfunding D-app that
makes use of blockchain technology to improve accessibility,
security, and transparency.
Motivation:
14
There are several motivations for utilizing
2 blockchain
technology in crowdfunding campaigns. Here are a few key
reasons why individuals and organizations might choose to
employ blockchain for crowdfunding:
1. Transparency: Blockchain provides an immutable and
transparent ledger where all transactions and activities related
to the crowdfunding campaign can be recorded. The
decentralized nature of blockchain ensures that information
cannot be easily manipulated or altered.
2. Security: Blockchain employs robust cryptographic
algorithms to secure transactions and data. Smart contracts, a
key feature of blockchain, enable the creation of
programmable rules and conditions for the release of funds,
adding an extra layer of security.
3. Reduced Intermediaries: Traditional crowdfunding
platforms often involve intermediaries, such as banks or
payment processors, which charge fees and can introduce
delays. With blockchain-based crowdfunding, these
intermediaries can be eliminated or minimized, leading to
reduced costs and faster transactions.
4. Global Accessibility: Blockchain technology allows
crowdfunding campaigns to reach a global audience without
limitations imposed by geographical boundaries or financial
 11
institutions. Anyone with
12 internet access can participate in the
campaign, making it easier to attract a diverse range of
contributors from around the world.
5. Tokenization: Blockchain enables the creation of digital
tokens that represent ownership or value. By tokenizing assets,
such as equity in a startup or real estate, crowdfunding
campaigns can offer contributors a stake or reward in the
project. Tokenization can unlock liquidity and provide early
access to investment opportunities that were previously
limited to traditional financial markets.
6. Community Engagement: Blockchain-based
crowdfunding often fosters an engaged community around a
project or cause. Participants become stakeholders, not just
contributors, and can actively participate in decision-making
processes through decentralized governance mechanisms.
Formulation of Objectives:
To streamline the process of project discovery and matching.
To provide global accessibility, allowing project creators and
backers from all over the world to participate.
To ensure timely and efficient fund disbursement to project
creators.
5 of products to increase supply chain value and retailers, and
To establish trust and credibility within the crowdfunding
ecosystem.
Societal Relevance:
Blockchain-based crowdfunding holds significant societal
relevance by addressing several existing limitations and
challenges associated with traditional crowdfunding models.
Here are some societal benefits of utilizing blockchain in
crowdfunding:
1. Financial Inclusion: Traditional crowdfunding platforms
often have restrictions on who can participate based on
geographical location, currency, or banking access.
Blockchain-based crowdfunding eliminates these barriers,
allowing individuals from anywhere in the world to contribute
to campaigns using cryptocurrencies or digital tokens.
2. Empowering Small-Scale Projects: Blockchain-based
crowdfunding enables small-scale projects, startups, and social
initiatives to access funding directly from a global pool of
contributors. This democratization of funding opens doors for
innovation, creativity, and social impact across various
sectors.
3. Trust and Accountability: One of the most significant
societal benefits of blockchain is the transparency and trust it
brings to crowdfunding campaigns. By leveraging
blockchain's immutable ledger and smart contracts,
contributors can verify the utilization of funds and hold project
creators accountable, ultimately fostering trust between
campaign creators and supporters.
4. Impactful Social Causes: Blockchain-based crowdfunding
has the potential to support social causes and initiatives with
greater efficiency and transparency. It allows for targeted
funding of projects related to humanitarian efforts, disaster
relief, education, healthcare, environmental conservation, and
more.
5. Decentralization and Democratization: Blockchain
technology promotes decentralization, removing the need for
centralized authorities and intermediaries in crowdfunding
campaigns. This decentralized nature aligns with the principles
of democracy and empowerment, as decision-making power is
distributed among contributors rather than concentrated in the
hands of a few.
6. Enhanced Privacy and Data Protection: Blockchain
technology incorporates strong encryption and cryptographic
techniques, providing improved privacy and data protection
for contributors. By leveraging blockchain's decentralized
architecture and cryptographic protocols, crowdfunding
campaigns can ensure a higher level of security and protect the
privacy of their participants.
Overall, blockchain-based crowdfunding has the potential to
transform the way projects and initiatives are funded, making
it more inclusive, transparent, and accountable. By leveraging
the societal benefits
10 of blockchain technology, crowdfunding
can become a powerful tool for social change, innovation, and
empowerment on a global scale.
II. LITERATURE REVIEW
[1] To build and solve the supply chain models of
consumer crowdfunding, the paper introduces multi-level
programming and the backward induction method. The
introduction of Blockchain technology in marine ranching
leading enterprises can significantly enhance the value of each
subject in the supply chain system. The study emphasizes that
enterprises should take measures to improve green attributes
crowdfunding platforms should focus on increasing the sales
volume of products to realize economic value.
[2] Proposes Lattice-based cryptosystem for encryption of
user data and zero-knowledge proof for the identification of
application users for security. The study emphasizes that all of
today's crowd funding transactions depend on a variety of
different crowdfunding platforms. It was shown how a smart
contract-based system could enable a safe kind of crowd
funding by ensuring the security of the investors'
contributions. The research aims to enhance cryptographic
algorithm to strengthen the data security and provide a more
secure channel for data transmission over systems.
[3] The project proposes that existing crowdfunding
applications do not ensure the security of fundings done by the
backers. To eradicate the problem, total funded amount would
not be transferred to the startup directly, instead, it would be
stored in a smart contract.
The application demonstrated works on a local blockchain,
but can be deployed to production on an actual blockchain and
it also provides transparency, reliability, security, and an
interactive user interface.
[4] Discusses that initially, blockchain was
7 only used as
the foundation for cryptocurrencies, but it has since then
expanded into a new emerging technology. The study also
emphasizes that issue with today's crowdfunding method is
that third-party intermediaries and contributors have no
control over the funds they donate. A Decentralized
application was offered based on the Ethereum Blockchain and
“Distributed ledger technology” concept was being explored.
Blockchain in crowdfunding is a new concept. It is proposed
to provide more transparent transactions in a decentralized
structure.
[5] The study discusses that the problem with the current
method is that firms charge both the donor and the consumer a
high fee. When it comes to crowdfunding with existing
businesses, the major issue is trust and trust is created by
delegating power over invested funds. Ethereum Virtual
Machine (EVM) allows application to run on public nodes.
The paper concludes with the advancement of blockchain
technology and introduction of initial coin offerings (ICOs),
where there is plenty of room for innovation and evolution.
 [6] It introduces a decentralized approach to crowdfunding
[12] By utilizing the strength of decentralized networks, the
that eliminates fees and gives a share of the project to the
suggested blockchain-centered crowdfunding assistance
receiver. Ethereum tokens are used to fund projects, which are
presents a revolutionary method of project fundraising. The
successful if they receive all targeted amount within a
idea of decentralized crowdfunding introduces a novel
specified time. Else, money is sent back to the investors
technique to maintain trust and responsibility among
through the backtracking method. A decentralized platform for
stakeholders by utilizing solidity programming to create smart
crowdfunding, eliminating middle agents and people
contracts. This study also examines the innovative possibilities
responsible for flattening the system was proposed. The
of this paradigm change with a particular emphasis on how it
application supports initiators through a simple and secure
will affect project funding in a decentralized ecosystem in
GUI, and the transactions of ethers are stored in a blockchain.
terms of efficiency, security, and transparency.
The study also discusses that the security is the main
challenging issue in crowdfunding contracts. [13] The study discusses about ground-breaking Ethereum-
based crowdfunding platform that enables consumers to
[7] The study discusses that the blockchain technology has
support venture creators throughout the world by investing in
huge potential in crowdfunding, as it increases credibility of
campaigns that personally interest them. The study also
projects and attracts huge funds from investors and donors. It
focuses on eliminating middlemen in crowdfunding and uses
also emphasizes that social media and internet play a vital role
smart contracts to speed up transaction execution, improving
in raising funds for entrepreneurs and other non-profit
efficiency and transparency. The paper concludes with
organizations. “Doctrinal method” was being explored for the
advancement of decentralized crowdfunding models and
given purpose. Blockchain technology is an independent and
offers perceptions on how the crowdfunding ecosystem might
transparent model that reduces uncertainty between parties
be altered by newly developing blockchain platforms.
who are exchanging values. Crowdfunding has immense 4
potential and influence, with blockchain technology making it [14] In order to mitigate security flaws, investor
easier, transparent and accessible. misbehavior, and illegal activities present in Crowdfunding
contracts, the research paper proposes a thorough conceptual
[8] The study discusses that social media and the internet
framework that makes use of blockchain technology.
play a vital role in raising funds. A donation-based
Blockchain provides a strong mechanism to secure investor
crowdfunding website called SupportTroops is used for social
protection and security within Crowdfunding operations by
and charitable endeavors. Blockchain technology is being used
establishing a trustless environment for information sharing
to revolutionize crowdfunding. It promotes an interface
and fund transfers. By describing a futuristic strategy that
between innovators, funders, and consumers. Blockchain
makes use of the built-in benefits of blockchain to build a more
based crowdfunding ensures more transparent transactions in
safe and transparent crowdfunding environment, the study
a decentralized manner and thus minimizing the transactional
contributes to the body of knowledge on crowdfunding
slippage while converting different cryptos to stable coins by
security and investor protection.
devising an algorithm to convert stable coin.
The existing technology discusses the utilization of multi-level
[9] Proposes that a new era of crowdfunding has arrived
programming and backward induction methods to construct and
because of blockchain technology, which provides a safe,
solve supply chain models in consumer crowdfunding. It
open, and decentralized alternative to established
emphasizes the potential value enhancement through the
marketplaces. Offers interactive forms for campaign
integration of blockchain technology in marine ranching
development, donation management, and request acceptance,
enterprises.
decentralized web applications which empower both creators
and backers. Decentralized web applications empower both Security concerns in crowdfunding are addressed by employing
creators and backers. Blockchain technology helps a lattice-based cryptosystem for data encryption and zero-
crowdfunding processes become more transparent, effective, knowledge proof for user identification. The need for
and democratic. Despite persisting difficulties, blockchain- strengthening cryptographic algorithms and ensuring secure
based crowdfunding platforms have the potential to data transmission in crowdfunding systems is emphasized.
fundamentally alter the fundraising and innovation landscapes.
Existing limitations in crowdfunding methods, such as high fees
[10] Discusses that in order to keep up with the fast-paced and lack of trust, are acknowledged. The proposed solutions
nature
15 of contemporary business, small and medium-sized include the utilization of smart contracts to enhance security and
firms are increasingly looking for innovative financing control over funds. Storing the total funded amount in smart
options. Innovative options that make use of technology to contracts and utilizing a decentralized approach are suggested.
quickly interact with potential investors include token issuing
The benefits of blockchain technology in crowdfunding are
and crowdfunding. Crowdfunding uses digital channels to
highlighted, including transparency, reliability, security, and an
enable direct communication between creators and backers,
interactive user interface. It discusses the role of social media,
facilitating quick financing and community development. A
the internet, and a donation-based crowdfunding platform called
digital component to ownership and investment is introduced
SupporTroops in facilitating transparent transactions and
via token issuance, which are frequently created using
interactions between innovators, funders, and consumers.
blockchain technology. This enables fractionalized ownership
The Ethereum Blockchain and the Ethereum Virtual Machine
and automated agreement execution.
(EVM) are mentioned as platforms that enable innovation and
[11] The research discusses decentralized structure of evolution in crowdfunding, particularly through initial coin
blockchain technology which gives users the ability to offerings (ICOs).
contribute directly to causes close to their hearts while also
Overall, the present papers present a comprehensive exploration
opening up a route for low-risk investing in startup businesses.
of blockchain's applications in crowdfunding, with a focus on
Crowdfunding enables creators to effectively get money by
security, transparency, and user experience. It suggests the use
streamlining the fundraising process and reducing the
of smart contracts, decentralized platforms, and alternative
dependency on 17middlemen. The study aims to investigate blockchain platforms for crowdfunding purposes.
cutting-edge methods for doing away with middlemen and
boosting the security of private information for both donors
and campaign producers.
 III. EXPERIMENTAL SETUP
Before running the project, one need to install various
dependencies and set up the environment variables:
3 ●
● Next.js- Next.js allows to create a user interface that
interacts with the Ethereum blockchain. One can
display information from smart contracts, enable user
interactions to trigger contract functions, and provide
a user-friendly interface for interacting with
blockchain data.
● Solidity- Smart contracts are self-executing code that
define the rules and logic of a blockchain application.
Solidity allows one to create complex decentralized
applications by defining the behavior and interactions
of a smart contracts.
● Tailwind.css-Tailwind.css can be used to style the
user interface of a Next.js application. This ensures
that the blockchain-based application is visually
appealing and provides a seamless user experience.
● Ether.js-It provides a set of utilities to create, deploy,
and interact with smart contracts using JavaScript
code. One can use Ether.js to write tests for a smart
contract, deploy them to different Ethereum
networks, and interact with them programmatically.
● Web3.js- It allows a Next.js application to connect to
the Ethereum network, interact with smart contracts,
and retrieve blockchain data. Web3.js enables
frontend to communicate with the Ethereum nodes,
enabling features like displaying real-time data from
the blockchain and triggering contract functions
through4user interactions.
● Chai- It is a JavaScript testing framework that can be
used to write tests for the smart contracts. It helps
ensure that the contracts behave as expected by
allowing one to define assertions and expectations
about their behavior.
● React-toastify-It is a React library that enables to
display toast notifications to users.
● Hardhat-It is an Ethereum development
environment that streamlines the process of
developing, testing, and deploying smart contracts.
● Redux-It is a state management library often used
with React applications.
IV. METHODOLOGY
Creating the Smart Contract:
● One creates 2 contracts in one .sol file: Crowdfunding
and Project. All Project contracts that will be
initialized are contained in the Crowdfunding
contract. A contract is specific to each crowdfunding
project.
● As for the Project contract, it is instantiated through
the Crowdfunding contract, and handles all the
methods that can be performed in every
crowdfunding project, such as contribute, get Refund,
etc. Basically, each project will initially be in the
Fundraising state and will change states through the
check If Funding Complete or Expired function from
there. Every time someone contributes funds towards
the project, the state will change depending on certain
conditions such as “has the project goal amount been
met” or “has the project exceeded the set deadline”.
● Also, notice how funds from the contract in both the
payOut and getRefund functions are not sent directly,
but have some security considerations because this is
an area prone to a reentrancy attack.
Building the Web App:
Setting up front-end part and performing:
● Cd crowdfunding
Npm install
● Npm run serve
Connecting to Our Smart Contract Instance:
● To enable the web app to interact with the smart
contract, web3.js is used which already has the
package installed.
● One might encounter a MetaMask pop-up window
that asks for access permission. This is because it has
Ethereum. Enable, where the app requests for account
access. One should just click the ‘Connect’ button.
● Now, it is needed for the smart contract’s ABI to
connect it to our web app. 2 contracts are there, so
one need to get both their ABIs. Return to Remix,
pick the Compile tab, click ABI next to the Details
button, and then make sure Crowdfunding is checked
in order to obtain it.
● After getting it, one must open the file named
crowdfund Instance.js in the contracts folder, then
paste it as the variable abi ’s value.
● Then, as seen, the deployed contract’s address is also
needed which one can get by going to Remix’s
Deploy tab, and clicking the copy icon on the
deployed contract.
● Go back to crowdfundInstance.js in the contracts
folder, then paste the address as the variable address’
value. Save the file, and one is done setting the
contract information for the Crowdfunding contract.
For the Project contract, just go back to Remix’s
Compile tab, select the Project contract.
Defining the Methods:
● Now as seen in the browser, the user interface is
ready,
8 but apparently, nothing is functional yet. That
is because one has not defined the functions yet,
which one will be doing now. Go back to App.vue,
where one can see methods, but everything just
contains a console.log ().
● The first function is retrieving all projects and their
details. Then, modify the getProjects function.
● Next, perform modify the function for starting a new
project, startProject.
V. ARCHITECTURE DESIGN
Building a blockchain-based crowdfunding system involves
designing a decentralized application (DApp) where each
transaction is secure, transparent, and immutable. Here is a
simplified architectural design for such a platform:
1. Frontend User Interface (UI): This is the platform's
website or app where project creators and investors interact.
It need to be simple to use and user-friendly. Project creators
should be able to easily set up campaigns, set fundraising
goals, and provide project details. Investors should be able to
easily find projects, view project details, and make
contributions.
 Fig 5.1: Architecture Design
2. Smart Contracts: The conditions of the agreement are
directly written in the code for these self-executing contracts. For
this platform, smart contracts will be used to manage the
crowdfunding process. When an investor contributes, the smart
contract
16 will automatically manage the investment.
6 For example,
if a project reaches its funding goal, the smart contract could Fig 5.2: High Level Design
automatically transfer the funds to the project creator. If the ● Campaign management: Campaign members can
project fails to meet its goal, the smart contract could manage their campaign, update their project
automatically refund the investors. These contracts should be
information, and set milestones.
built on a suitable blockchain platform that supports them.
● Dispute resolution and governance: Mechanisms can
3. Blockchain Network: The core of the platform. This is where be implemented to handle disputes such as community
the transactions are recorded and stored. Depending on the
voting or arbitration.
specific needs of the platform, this could be a public blockchain
(like Ethereum or Bitcoin), a private blockchain, or a consortium Low-Level Design:
blockchain. This will provide the transparency, security, and
immutability benefits associated with blockchain technology.
4. Cryptocurrency Wallets: To enable transactions on the
blockchain, each user will need a digital wallet. This could be
integrated into the user account on the platform. When a user
wants to make a transaction (e.g., to fund a project), they would
use their wallet to send cryptocurrency to the relevant smart
contract.
5. Backend Servers: While the goal is decentralization, some
level of traditional backend infrastructure may still be required
for managing user accounts, sending notifications, and other non-
blockchain related tasks.
6. APIs and External Integrations: These would be used for
any external services the platform needs to interact with. For
example, if the platform needs to convert between
Fig 5.3: Low Level Design
cryptocurrency and fiat currency, it might use an API for a
cryptocurrency exchange service. ● Smart Contracts: These includes campaign, token
7. Security: Extra measures should be implemented to ensure the and voting contracts where: campaign contracts
9
platform is secure. This could include things like two-factor Managing the crowd funding campaigns,
authentication, encryption, and regular audits of the smart including contributions, milestones and fund
contracts. distributions on the other hand token contract
High-Level Design: represents the project specific token used in
crowdfunding and finally voting contracts enables
● Milestone tracking and release of funds: Campaigns voting mechanisms for project proposals or
can be divided into milestones or stages to track milestones.
progress. Once the milestones are achieved, the funds ● Campaign Creation: Campaign creation can create
allocated for that milestone are released to the campaign new campaigns, specifying details such as funding
creator's wallet.
goal, duration, milestone, and rewards. Each
● Social interaction and engagement: Users can engage campaign receives a unique identifier and associated
in discussions, comment on campaigns, and provide smart contract.
feedback. ● Contribution process: Contributors can browse and
select campaigns to contribute funds. It then triggers
a transfer of the token from the contributor's wallet to
the campaign's smart contract.
● Users’ roles: Who will create crowdfunding
campaigns and who will contribute towards them.
 VI. CONCLUSION
Crowdfunding using blockchain technology offers numerous
benefits and has the potential to revolutionize the way projects
and initiatives are funded. Consider the following key-point
details:
1. Decentralization and Transparency: Blockchain
provides a decentralized and transparent platform for
crowdfunding. It eliminates the need for intermediaries, such
as banks or crowdfunding platforms, by allowing direct peer-
to-peer transactions. This transparency builds trust among
participants and reduces the risk of fraud or mismanagement.
2. Security and Trust: Blockchain's distributed ledger
technology ensures the security and immutability of
transactions. Smart contracts can be implemented to
automatically execute crowdfunding agreements, ensuring
that funds are released only when predetermined conditions
are met. This eliminates the need for third-party verification
and instills trust in the crowdfunding process.
3. Global Accessibility: Blockchain-based crowdfunding
opens up opportunities for people worldwide to participate in
funding projects. Traditional crowdfunding platforms often
have geographic restrictions or high fees, limiting11access for
certain individuals or regions. With blockchain, anyone with
internet access can contribute to projects, making fundraising
more inclusive and diverse.
4. Tokenization and Liquidity: Blockchain enables the
tokenization of assets, allowing project creators to create
digital tokens that represent ownership or access rights. These
tokens can be traded on secondary markets, providing liquidity
to investors and backers. It also creates new opportunities for
early backers to sell their tokens and potentially profit from the
success of the project.
5. Increased Efficiency: Blockchain streamlines the
crowdfunding process by automating many tasks and reducing
administrative burdens. Smart contracts automatically handle
the collection, distribution, and management of funds,
eliminating manual intervention and reducing costs. This
efficiency can accelerate the speed at which projects are
funded and executed.
Overall, crowdfunding using blockchain has the potential to
democratize access to funding, increase transparency, and
foster innovation. As the technology continues to mature and
regulatory frameworks develop, everyone can expect to see
even greater adoption of blockchain in crowdfunding and other
sectors of the economy.
In conclusion, the integration of blockchain technology in
crowdfunding promises to disrupt traditional fundraising
models, democratizing access to capital and making the
process more transparent, efficient, and globally accessible.
By eliminating intermediaries, reducing costs, and fostering an
environment of trust through smart contracts, blockchain has
the potential to redefine crowdfunding as everyone knows it.
With advancements such as tokenization, integration with
DeFi mechanisms, Security Token Offerings (STOs), and the
potential use of decentralized autonomous organizations
(DAOs), everyone can look forward to a future where
fundraising is more inclusive, equitable, and rewarding for
both project creators and backers. However, it is crucial to
navigate the challenges ahead wisely, particularly in the
realms of regulation, technology infrastructure, and public
acceptance. As everyone continue to innovate and refine the
technology, blockchain-based crowdfunding presents a
profound opportunity to empower a new generation of
entrepreneurs and investors worldwide.
VII. FUTURE SCOPE
1
The future scope for crowdfunding using blockchain
technology is promising and holds several exciting
possibilities. Some potential developments and growth regions
are as follows:
1. Increased Global Adoption: As blockchain technology
becomes more widespread and accessible, everyone can
expect to see increased global adoption of crowdfunding
platforms built on blockchain. This will enable people from all
over the world to participate in funding projects and initiatives,
regardless of their geographic location or financial
infrastructure.
2. Tokenization of Different Asset Classes: Currently,
everyone mainly sees tokenization of digital assets and
cryptocurrencies in blockchain-based crowdfunding.
However, in the future, everyone may witness the tokenization
of various asset classes, such as real estate, intellectual
property, and commodities. This will open up new
opportunities for individuals to invest in and support a wide
range of projects.
3. Enhanced Governance and Voting Mechanisms:
Blockchain technology can enable decentralized governance
and decision-making processes within crowdfunding projects.
Using smart contracts and token-based voting systems,
participants can have a direct say in project management,
strategic decisions, and resource allocation. This enhances
transparency and reduces the risk of centralized control.
4. Integration with Internet of Things (IoT): The
integration of blockchain with IoT devices can provide new
avenues for crowdfunding. For instance, IoT devices can
validate and track the usage of funds in real-time, ensuring
transparency and accountability. Moreover, IoT devices can
facilitate automatic
2 micro-payments or royalties to backers,
creating a more dynamic and rewarding crowdfunding
ecosystem.
5. Regulatory Frameworks and Investor Protection: As
the blockchain crowdfunding space evolves, regulatory
frameworks will likely be established to protect investors and
mitigate risks. These frameworks may define standards for
disclosure, investor eligibility, and compliance, fostering trust
and stability in the crowdfunding market. This regulation will
encourage more traditional investors and institutions to
participate in blockchain-based crowdfunding.
6. Crowdfunding as an Initial Coin Offering (ICO):
Alternative: Initial Coin Offerings (ICOs) gained popularity in
the past as a means of crowdfunding through blockchain.
However, ICOs faced regulatory challenges and scams. In the
future, everyone may see the emergence of more regulated and
compliant crowdfunding methods, such as Security Token
Offerings (STOs) or Initial Exchange Offerings (IEOs), which
provide a more secure and regulated fundraising mechanism.
The future of crowdfunding using blockchain technology is
extremely promising, with potential advancements expected to
revolutionize various aspects of this field.
The incorporation of tokenization is projected to enable
fractional ownership of crowdfunded projects, allowing
investors to buy and sell their stakes in a crowdfunding project,
therefore providing liquidity to traditionally illiquid
investments.
The integration of Decentralized Finance (DeFi) mechanisms
within crowdfunding platforms can allow more complex
financial mechanisms such as interest earning on pledged
amounts, insurance on investments, and other sophisticated
financial products that are currently not possible in traditional
crowdfunding scenarios.
Moreover, with the advancement of smart contract technology
and increased regulatory clarity, everyone can expect a surge
in Security Token Offerings (STOs) for crowdfunding. This
will allow blockchain-based crowdfunding platforms to
comply with securities regulations, bringing more legitimacy
and trust to this space.
However, the realization of this promising future depends
heavily on factors like regulatory advancements, technological
improvements, and wider public acceptance of blockchain
technology and cryptocurrencies. But given the current
trajectory, blockchain-based crowdfunding is well poised to
reshape the landscape of fundraising in the coming years.

VIII. REFERENCES

[1] Blockchain technology empowers the crowdfunding

decision-making of marine ranching- Xiaole Wan, Zhengwei
Teng, Qianqian Li, Muhammet Deveci- 2023
[2] Security Enhanced Crowdfunding Using Blockchain
and Lattice Based Cryptosystem- K VIDYA, Hussain Imthiaz
Hussain, Vishal Celestine, Vishwa Kumar, V NOEL JEYGAR
ROBERT- 2022
[3] Blockchain-Based Crowdfunding Application- Viren
Patil, Vasvi Gupta, Rohini Sarode- 2021
[4] Crowdfunding using Blockchain Technology- Saniya
Zad, Zishan Khan, Tejas Warambhe, Rushikesh Jadhav- 2021
[5] Crowd Funding Platforms Using Blockchain Smart
Contracts- Aakarshit Giri, Dr. Avinash Gupta, Miss. Alka
Singh, Atul Kumar Verma, Anchal Jha- 2022
[6] Decentralized Application for crowdfunding using
Blockchain Technology- H.L. Gururaj, V. Janhavi, Abhishek
M. Holla, Ashwin A. Kumar and R. Bhumika- 2021
[7] Role of Blockchain Technology in Crowdfunding-
Atluri Divija Choudary- 2021
[8] Support Troops: Crowdfunding Using Blockchain-
Moayad Kaydawala, Abhinav Pandey, Parnika Roy,
Himanshu Jaroli, Bindu Garg– 2022
[9] Crowd-Funding Using Blockchain Technology- Prof D.
L. Falak, Soudagar Shanawaz, Jadhav Pranav, Katke Kajal,
Shukla Utkarsh- 2022
[10] Theories of Crowdfunding and Token Issues: A Review-
Anton Miglo- 2022
[11] CrowdFund: CrowdFunding Decentralized
Implementation on Ethereum Blockchain- Sukhvinder Singh
Bamber- 2023
[12] Decentralized Crowdfunding Using Blockchain- Arjun
Menon, Kaustubh Kadam, Pranav Kumar, Subash Kumar
Shah- 2022
[13] CROWDSOURCE FUNDING SOLUTION BASED
ON BLOCKCHAIN- Sumukha Shegakula Nagaraj- 2020
[14] The Applications of Blockchain Technology in
Crowdfunding Contract- Zhao Hongjiang, Cephas P.K Coffie-
2022