A Survey on Use of Blockchain Technology in Introducing Transparency in Charity
2Assistant Professor, Computer Engineering, RMD Sinhgad School of Engineering, Warje, India
1,3,4UG Student, Dept. of Computer Engineering, RMD Sinhgad School of Engineering, Warje, India
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Abstract - The current online charity system that works on a client-server architecture has many cons to it. One of the main disadvantages of the charity system in India is corruption. Many charitable organizations in India are not transparent about their funding, and there are often cases of embezzlement of funds meant for charitable purposes. There is also lack of accountability as many organizations are not audited regularly. To address these problems we are building a decentralized blockchain based system that will provide full transparency to the donors and increase their trust in the system. The system is based on a decentralized distributed ledger that enables tamper-proof record-keeping and automates processes through smart contracts. This ensures greater accountability and transparency, reducing the risk of fraud or misuse of funds.
Key Words: Blockchain, Distributed Ledger Technology, Cryptocurrency, Transparent, Smart Contracts.
1. INTRODUCTION
Blockchaintechnologycanbeusedinavarietyofwaystoenhancecharitytrackingandensuretheauthenticityofcontent. HerearesomefunctionalitiesthatourblockchainbasedDAppwillbeproviding:
1.1 Transparent donation tracking:Blockchaincanprovideatransparentandsecurewayoftrackingdonationsmadeto a charity. Each transaction can be recorded on the blockchain, making it easy to track the flow of funds and ensure that theyarebeingusedfortheirintendedpurpose.
1.2 Immutable records:Oneofthekeyfeaturesofblockchainisthatonceatransactionisrecorded,itcannotbealtered or deleted. This can help ensure that charity records are accurate and trustworthy, reducing the risk of fraud or corruption.
1.3 Decentralized storage: Blockchain can be used to store content in a decentralized manner, ensuring that it is not controlled by any single organization or entity. This can help reduce the risk of censorship or manipulation of content. Here everyone in the network will be having a copy of transaction i.e a distributed ledger and hence the data won’t be tamperedeasily.
2. RELEVANT TERMINOLOGIES
2.1 Distributed Ledger Technology (DLT):
A ledger refers to an orderly and systematically stored set of information, often electronic, that is intended for purposes suchasbookkeeping,dataretrieval,processing,andmanagement.Ontheotherhand,adistributedledgerisatypeofdata structurethatcanbeusedtotransformacollectionofuncommittedcopiesintoafinaluniformstate,typicallythroughthe useofaconsensusmechanismthatensureseventualconsistency.
2.2 Smart Contracts:
Smartcontractsaredesignedtobetamper-proofandirreversible,andtheyareexecutedautomaticallyoncetheconditions encodedwithinthemaremet.Theycanbeusedtoautomateawiderangeoftransactions,fromsimplepaymenttransfers tomorecomplexarrangementsliketheexchangeofgoodsorservices.
2.3 Ethereum Virtual Machine(EVM):
The EVM is a Turing-complete virtual machine, meaning that it can execute any arbitrary code, as long as it does not exceedthegaslimit(aunitofcomputationaleffortrequiredtoexecuteoperationsontheEthereumnetwork).Thismakes
ithighlyversatileandflexible,enablingdeveloperstocreatecomplexdAppsthat canrunautonomouslywithouttheneed forintermediaries.
2.4. Proof of Stake (PoS)
Proof of Stake (PoS) is a consensus mechanism used in blockchain networks to secure the network and validate transactions. Unlike Proof of Work (PoW), which requires miners to solve complex mathematical problems to validate transactionsandearnrewards,PoSreliesonvalidatorswhoholdacertainamountofcryptocurrencyasastaketovalidate transactionsandearnrewards.
Validatorsmustholdacertainamountofcryptocurrencyandlockitupascollateralinordertoparticipateinthenetwork. Theprobabilityofbeingchosentovalidateanewblockisproportionaltotheamountofcryptocurrencytheyhavestaked. Validators are incentivized to act honestly, as they stand to lose their staked cryptocurrency if they are found to be engaginginmaliciousbehavior.
3. LITERATURE SURVEY
Sr no. Name of Journal/Ye ar
1. INT-JECSE -2022 CrowdFunding Fraud Prevention usingBlockchain.
Dheeraj KumarS, SubashI, ShanthaKumar iA, DeepaR
The authors have used the Proof of Work algorithm which is less time efficient as compared to its rival consensus algorithms such as Proof of Stake(PoS) and Delegated Proof of Stake(DPoS).
ProofofWork
2. IRJET2022
Charity System using Blockchain Technology
RhythmNegi Blessy Thomas, Prajkta Ghorpade
Ammu Attiyilya
The authors use the PoW consensus algorithm and make use of Bitcoin blockchain which can only undergo 7 transactionspersecond.
Proof of Work &ECDSA
3. IRJET2022 Blockchain Based Charity System UsingPHP/MySQL
Varsha Kamble, Sapna Mandavkar, Hrishikesh
Ramane
The authors have used Laravel for backendandPHPwhichisnotsuitable for modern Web applications which are based on the Blockchain technology.
ProofofWork
4. Elsevier Blockchain-based donations traceability framework
Abeer Almaghrabi, AreejAlhogail
The authors make use of the Bitcoin Blockchain which is comparatively slower as compared to the Ethereum Blockchainwhenitcomestotherateat whichtransactionsareprocessed.
SHA-256 Bitcoin-P2P protocol
5. IJRASET Transparent Charity System using Smart Contracts on Ethereum using Blockchain
Purva Deepak Patil1 , Dikshita Jaiprakash Mhatre, Nidhi Hemant Gharat3, JishaTinsu4
Future Work - MySQL will be used for centralizedstorage.
In the paper authors haven’t mentioned which algorithm they have used.
-
6. Internation al Journal of Research
Publication and Reviews
Charity Donation System Based On Blockchain Technology
PROF.Dhanash riPatil, Abhishek Kadam, GargiSheytey, Tanmay Budageand Ashutosh Sonar
Not well chosen technology for buildingtheapplication.
SHA-256.
7. Elsevier B.V DT-DPoS: A Delegated Proof of Stake Consensus Algorithm with DynamicTrust
8. Springer2021 A donation tracing blockchain model using improved DPoS consensus algorithm.
9. Elsevier2020 A Blockchainbased CrowdFunding Platform for FutureSmart and Connected Nation.
Yuanyuan Suna, BiweiYanb, YanYaoc, JiguoYuc
XiujunWang, YufeiPeng, WeiShe
The paper have told about the differencebetween DPoSandDT-DPoS , Sothereisnoresearchgap.
The authors have not given out a detailed layout of how to implement the proposed algorithm and make use ofitinDecentralizedApps(DApps).
Delegated Proof of Stake(Dpos)
DT-DPoS
Delegated Proof of Stake and K-means algorithm
VikasHassija, Vinay Chamola, Sherali Zeadally
The authors have proposed the use of thePoVValgorithm.
Buttheissuewiththisalgorithmisthat the energy consumption and other associatedcostsincreaseexponentially as the number of competing nodes (developers)increases.
4. ALGORITHMIC SURVEY
Sr no.
Publication: AlgorithmUsed: Space/Time Complexity:
1. INT-JECSE2022 ProofofWork
Keccak-256isusedinahashfunction whichreturnsa 256bitsstringor32 bytesarray.
Timetakentoaddanewblock-12s.
Proofof VirtualVoting forshowing relevantNGO suggestionsto thedonor.
ECDSAfor publickey cryptography.
Remark:
Keccak-256 is stronger than usuallyusedSHA-256.
2. IRJET2022 Proof of Work & ECDSA ECC is significantly faster than the other counterparts like RSA which areusedforpublickeycryptography.
Time taken by ECDSA in signature generation and verification is 93ms &125ms
3. IRJET2022 ProofofWork Keccak-256isusedinahashfunction whichreturnsa 256bitsstringor32 bytesarray.
Timetakentoaddanewblock-12s.
Efficient algorithms like ECDSA and Keccak-256 are used making the overall process of encryption and exchange of keysveryfast.
Keccak-256 is stronger than usuallyusedSHA-256.
4. Elsevier https://doi.org /10.1016/j.jksu ci.2022.09.021
SHA-256, Time complexity for 41 steps : 2253.5, (O(N))
Memory requirement is 216 × 10 words O(1)
Thetimeandspacecomplexities dependsonthenumberofsteps thealgorithmhasused, used widely by technology leaders.
5. International Journal of Research Publication and Reviews
SHA-256. Time complexity for 41 steps : 2253.5, (O(N))
Memory requirement is 216 × 10 words O(1)
Thetimeandspacecomplexities dependsonthenumberofsteps thealgorithmhasused,
Used widely by technology leaders.
6. ElsevierB.V Delegated Proof ofStake(Dpos)
DT-DPoS
7. Springer2021 Delegated Proof ofStake K-means algorithm
Blockgeneratingtime <1second
Blockgeneratingtime <1second
Improves the throughput of the transaction and verification speed.
The number of witness node presentinconsensusarelessso, Algorithmsaremorescalable. They are using ring signatures formoresecurity.
Blockgeneratingtime <1second
Improves the throughput of the transaction and verification speed.
TimeComplexity:O(N^2) (nistheinputdatasize)
K-Means is slow when it comes tobiggerdatasets
5. LIVE SURVEY
Sr no. ExistingWork Websitelink Technology/algorithm used Remark
1. BinanceCharity https://www.bina nce.charity/binan ce-charity-wallet
BinanceBlockchain(BNB) ProofofStakedAuthority (PoSA)
Techused-ReactJSforthe frontend
MySQLforbackend.
Makestheuseoftheirownblockchain andPoSAconsensusalgorithmwhichis fasterandconsumeslessenergyas comparedtotheblockchainsusingProof ofWork(PoW)consensus.
ItsupportsvariousCryptocurrencieslike ETH,BTC,etc.
2. Giveth https://trace.givet h.io/communities
ProofofWorkconsensus algorithm,Keccak-256 hashalgorithm.Techused -Reactjs,nodejs,docker
Gooduserexperience,easytounderstand anddonateusingMetamask.Hasvarious campaigns,fundsandcommunitiesto whichuserscandonate.
3. GiveCrypto https://givecrypt o.org/
EthereumBlockchain PoWconsensusalgorithm ReactJSforfrontend MySQLforbackend.
Itusescoinbaseasthecryptowallet throughwhichpeoplecandonatereal moneywhichisconvertedto cryptocurrencyandvice-versa.
4. TrackMyCharit y https://trackmyc harity.org/
6. PROPOSED WORK
ProofofWork(PoW) consensusalgorithm.
Thewebsiteisnotactivecurrentlyand donationscannotbemade.
Aftergoingthroughalotofrelevantresearchpapersandalsostudyingthecurrentlyexisting systems,wehavedecidedto proposeacharityapplicationusingblockchainforwhichthebasicalgorithmwillbeasfollows.
Step 1: NewDonorsandNGOscanregistertotheapplication.
Step 2: The Government body will approve the NGO if the registration record of the NGO is found in the Government registrationrecords.
Step 3: TheapprovedNGOscanmakerequestsfordonationsandstartnewcampaignsforraisingfunds.
Step 4: The signed in users will search for the causes to which they want to make donations to and select the relevant campaignsandNGOstomakedonationsto.
Step 5: Thedonorswillmakethedonationsbysimplyselectingtheamounttodonateandclickonthedonatebutton.Once the donate button is clicked, a smart contract will be executed which will automatically transfer the donated sum to the crypto-walletoftherespectiveNGO.
Step 6: ThetransactionisverifiedusingtheProofofStake(PoS)consensusalgorithmandthenonly,anewblockisadded totheblockchainandthedonationsumistransferredtotheNGO.
Step 7: OncethesumisreceivedbytheNGO,athankyoumessagewillbesenttothedonorautomaticallywiththehelpof smartcontract.
7. CONCLUSIONS
In India, the current charity framework is plagued with issues such as low transparency, concerns around data security, lackoftrustamongindividuals,andfakefoundations.Totackletheseproblems,thispaperproposesanovelapproachthat utilizesblockchaintechnologytorevolutionizethecharityframework.Ourblockchain-basedcharityapplicationswillalso ensure that there is transparency in the transactions process and also that the process is not controlled by any one authority.
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