A Reliable and Secure Crowdfunding Platform Using Decentralized Blockchain

Abstract

Crowdfunding is a significant avenue for raising funds over the Internet to bring ideas into reality without relying on traditional funding sources. However, conventional centralized crowdfunding systems suffer from issues such as trustworthiness and transparency. In other words, it is necessary to ensure the reliability of information regarding project details, progress, and money exchanges, and to store this information in a form that cannot be altered. To ensure that the quality of projects is not degraded due to these causes and resolve the existing limitations, we propose a decentralized crowdfunding system using blockchain technology with two major contributions: "Decentralized Voting", and the "Decentralized Evaluating" methods. The Decentralized Voting Method aims to solve a particular platform's biased review by voting on the project's prospects and credibility. The Decentralized Evaluating Method aims to ensure project quality by exploiting the transparency of the invested projects. In this proposed blockchain-based solution, we used React and TypeScript for the front end and Rust-empowered Substrate at the backend. By using these methods, we verify through simulation that the implemented system works as proposed. This study identifies problems in crowdfunding and their causes, and then proposes a system that uses the two methods described above. The proposed system is expected to be a reliable distributed crowdfunding system.