International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 12 Issue: 08 | Aug 2025
p-ISSN: 2395-0072
www.irjet.net
Revolutionizing Crowdfunding with Blockchain: Ensuring Transparency and Security Swati Khokale1, Priyanka Salunke2 1Assistant professor, Dept. of Comp. Engg, Guru Gobind Singh COE and Research Center Nashik, Maharashtra,India
2Assistant professor, Dept. of Comp. Engg, Guru Gobind Singh COE and Research Center Nashik, Maharashtra,India
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Abstract - Crowdfunding has become a revolutionary way
them up to mismanagement and diminishing trust among project creators and donors. Moreover, donors usually do not have an idea of how their money is being spent, and this is where the risk of fraud and misuse comes in. The above challenges act as a major entry barrier for project creators and potential supporters, which in the end discourages crowdfunding as a capital-raising option. In today's digital economy, an open and secure crowdfunding model is critical to ensuring that fundraisers and donors trust each other.
of raising funds by allowing people and organizations to raise funds from numerous supporters using web-based platforms. That aside, conventional crowdfunding platforms are typically beset with serious issues, such as poor transparency, security threats, and fraud threats that may ruin trust among funders and project developers. Blockchain provides a secure and decentralized way by capitalizing on its intrinsic properties like immutability, transparency, and smart contracts. Crowdfunding can be ensured to be secure, tracking of funds can be done in real time, and the project sponsors can be made more confident about the fundraising process by implementing blockchain technology. What has been provided here is some available literature on crowdfunding and applying blockchain technology in order to identify gaps in current crowdfunding platforms and where blockchain can offer cost-effective solutions. We quote past research with examples of fraud, misuse of funds, and no accountability in classical crowdfunding models. Together with that, we look into research works that exhibit how blockchain-based crowdfunding websites are able to ensure better security, fund transfers by smart contracts automatically, and maintain an open platform. By combining information from a variety of research pieces, we give a holistic overview of how blockchain will transform crowdfunding by developing a secure, trust-based, and decentralized platform for both funders and creators KeyWords:BlockchainTechnology,Crowdfunding,Transperen cy,Security,Smart Contracts, Fund Allocation
1.INTRODUCTION
Also, the late disbursement of funds may pose operational challenges, particularly for projects that need constant funding in order to advance. Our Blockchain-based crowdfunding platform addresses these concerns by using smart contracts—autonomous contracts with agreed-upon conditions programmed into the Blockchain. These smart contracts allow funds to be disbursed only when conditions are fulfilled, like project milestones or agreed-upon deliverables. By streamlining the process of releasing funds, our method minimizes the risk of fraud considerably while giving assurance to backers that their funds will be utilized correctly. In addition to automating the release of funds, Blockchain technology increases accountability by keeping
Blockchain technology is an innovative solution with the power to transform industries through increased transparency, security, and efficiency. It is widely used in conjunction with cryptocurrencies, yet its uses far surpass digital currencies, providing answers to basic problems in a multitude of industries. One of the areas that will greatly gain from Blockchain implementation is the industry of crowdfunding, which has traditionally been characterized by fraud, opaqueness, high fees paid to intermediaries, and inefficient allocation of funds. Centralized platforms have conventionally worked in crowdfunding, and these centralized institutions manage the money flow, opening
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Conventional crowdfunding platforms rely heavily on thirdparty intermediaries to handle financial transactions, enforce agreements, and manage fund distribution. This centralization not only increases operational costs but also exposes transactions to potential manipulation and security breaches. Furthermore, high service fees imposed by these intermediaries often reduce the total amount of funds that actually reach project creators, making crowdfunding less efficient than it could be. Transparency over the fund distribution is another area of importance since most backers do not know what their funds are being spent on. With no trustworthy mechanism in place to trace the flow of funds, the risk of misuse increases, hence decreased confidence in the model of crowdfunding. To overcome these drawbacks, our work proposes a new type of crowdfunding that uses Blockchain technology to implement a decentralized, secure, and trust-based fundraising mechanism. One of the biggest drawbacks of current crowdfunding sites is that there are no mechanisms to guarantee that money is spent as promised. Creators of projects can get funded but not deliver on their commitments, causing backers to be disillusioned.
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