Secure Crowdfunding Using Blockchain
Yogita Borse, Hassan Khan, Ujjwal Bana, Smit Upadhyaya · 2024
In the existing crowdfunding method there are several drawbacks. First is the contributor does not have control over the amount invested and the entire amount is given in the hands of project manager/ Campaign Manager. Secondly, the centralized nature of the system introduces intermediaries where they charge fees for providing the service which reduces the funds available for the project and increases the cost for contributors as well. To fulfill all the drawbacks crowdfunding using blockchain was introduced to increase the transparency and remove the intermediaries from the process and keep security of the investors’ funds. But after going through the multiple implemented system we realized that there’s some changes required to overcome the spending problem in the blockchain based crowdfunding system. The drawback which came to our notice was that to use funds from smart contracts the fundraiser creates a request but the problem arises here is whether the fundraiser is using the funds appropriately or not. Another problem which we noticed is that the fundraiser raise the funds for already existing project which is available in local market and they simply raise the funds and provide the project to fundraiser. We came up with the solution of providing proof of work of the project and before requesting funds for the project the fundraiser has to provide the proof of progress in the project or the client consent to withdraw the funds. For providing traceability the fundraiser will have to provide the address to check the spending of the funds withdrawn from the contract.