The role of blockchain technology-based social crowdfunding in advancing social value creation

Abstract

This study investigates the practical applications of blockchain technology in socially oriented crowdfunding platforms (SCPs). In recent years, SCPs have grown due to their perceived benefits compared to traditional funding channels. However, skepticism remains regarding the potential for the further development of crowdfunding platforms, especially SCPs, due to restrictions on attracting investment as well as concerns related to transparency, reliability, and trustworthiness. The recent applications of blockchain technology in crowdfunding promise a possible solution to current obstacles, and may facilitate SCPs. Employing a qualitative research approach based on three case studies, this study addresses how blockchain technology can be used to facilitate the social value creation of crowdfunding when adopted as an alternative infrastructure. Accordingly, this study identifies both the facilitators of the social value creation process through blockchain technology (e.g., reducing operational costs, increasing trust and transparency, and cultivating a broader crowdfunding community) and the barriers of this application in terms of development costs and legal requirements. In addition to answering calls to investigate the role of blockchains in facilitating social activities, this study expands the emerging literature by demonstrating the practical applications of blockchain use in crowdfunding.