International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 11 Issue: 04 | Apr 2024
p-ISSN: 2395-0072
www.irjet.net
Crowdfunding Platform with Blockchain Integrity Prof P.N. Deshmukh1, Pranav Warthe2, Mohit Kanthale3, Vaibhavi Bhurane4, Khushal Rathod5 1 Professor, Dept. of CSE Engineering, PRMIT&R college, Maharashtra, India 2 Student, Dept. of CSE Engineering, PRMIT&R college, Maharashtra, India 3 Student, Dept. of CSE Engineering, PRMIT&R college, Maharashtra, India 4 Student, Dept. of CSE Engineering, PRMIT&R college, Maharashtra, India 5 Student, Dept. of CSE Engineering, PRMIT&R college, Maharashtra, India
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Abstract - Crowdfunding is a method of obtaining money
Keywords: Crowdfunding, Blockchain Technology, Smart Contracts, entrepreneurial finance, donations.
of blockchain technology, crowdfunding has the potential to become more decentralized, transparent, and secure. This project is an implementation of a decentralized crowdfunding platform using blockchain technology. It is built on the Ethereum blockchain and uses smart contracts to manage the crowdfunding process. The platform allows campaign creators to create a campaign and set a fundraising goal and deadline. Donors can then contribute to the campaign using Ether, the native cryptocurrency of the blockchain. One of the key advantages of using a blockchainbased crowdfunding platform is that it eliminates the need for intermediaries such as banks, payment processors, and crowdfunding platforms. This reduces costs, enhances transparency, and provides greater control and security to both campaign creators and donors. Smart contracts ensure that funds are only released when certain predetermined conditions are met, providing greater accountability and trust. There are various types of crowdfunding, including:
1.INTRODUCTION
1.1 Debt-Based crowdfunding
This type of crowdfunding is the practice of raising money from different groups of people, often using the advantage of access to the internet to attract supporters. This approach covers a wide range of sectors, including private equity, real estate, lending, startups and non-governmental organizations (NGOs), making it a better option for business people.
In this model, investors generally expect to get paid back in cash and interest, bypassing the banking system. This approach, called “peer-to-peer” lending, provides another means of financial support[2].
for a project by asking a lot of people for modest donations, usually online. Nowadays, the biggest issue with crowdfunding is the trust component. People are reluctant to donate because of the increasing number of frauds that are occurring today. However, if donors could be assured that their money would be put to good use, donations may rise significantly. The need to employ blockchain in crowdfunding arises here. With the blockchain system, transactions are tracked over a network of computers that are connected to one another. On the flip side, crowd funding platforms reverse that process entirely. They provide entrepreneurs with a centralized platform to create, display, and distribute their pitch materials, significantly simplifying the conventional model
1.2 Equity based crowdfunding In this way, investors have partial ownership of the project and are entitled to receive dividends. However, like gambling, this approach has risks because the success or failure of the project directly affects the price of the stock.[1] As shareholders, your backers earn a financial reward for their investment and ultimately gain a portion of the profits through dividends or distributions.
The emergence of blockchain technology has opened new possibilities for problem solving. The competition is in crowdfunding. Leveraging blockchain's unique decentralization, transparency and security features, the technology provides a tamper-proof, decentralized ledger for secure and transparent business transactions, eliminating the need for those who need it. This has great potential to appeal to the crowd and encourage direct and transparent interaction between sponsors and supporters. The choice of public service model is often based on the business or competition to be pursued, and business objectives also have a significant impact. Crowdfunding is a popular method used to raise funds for various projects, causes, and initiatives. Traditional crowdfunding platforms, however, are often centralized and have limitations in terms of accessibility, transparency, and security. With the advent
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1.3 Rewards-Based Crowdfunding In this type of crowdfunding, individuals contribute to a project in exchange. For rewards, which can be either monetary or in the form of a product. Numerous platforms now utilize this type of crowdfunding.
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