Crowdfunding System Research Articles

A Reliable and Secure Crowdfunding Platform Using Decentralized Blockchain

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.

Kingdom of Fintech: crowdfunding shaping the future in the kingdom of Saudi Arabia

Purpose This study aims to assess that whether Islamic real estate crowdfunding (RECF) can offer a compelling alternative investment that can attract substantial funds from traditional securities and other conventional methods or otherwise. Design/methodology/approach The current study draws on secondary data that was published on legitimate website, Twitter and official documents. Document analysis is conducted using the statements of privacy policy, Sharia compliance, terms and conditions disclosers and the established facts. Second, to achieve in-depth knowledge, a qualitative analysis was conducted for the published interviews and presentations with Aseel CEO Majed Abalkhail on YouTube. Thematic analysis is adapted; it is among the most popular types of analyzing qualitative data. Findings The findings show that the Aseel platform has been successful in providing simple access to investment opportunities by minimizing the obstacles, reducing entry and exit costs, streamlining the process and widening the investor’s base. Originality/value This paper seeks to contribute to the literature on crowdfunding, Islamic crowdfunding and RECF. Its objectives include exploring the concept of crowdfunding, its growth and various types. Furthermore, the paper aims to examine the expansion of the Islamic crowdfunding system, its current market position and a focus on the Saudi Arabian market. Lastly, the paper investigates the first RECF in Saudi Arabia, Aseel Company, which has achieved remarkable success with seven investment funds completed within its first year of establishment.

Motivational Drivers in Donation-Based Crowdfunding Systems: Empirical In-sights from the Ehsan Platform in Saudi Arabia

Crowdfunding is an effective method for raising funds, with donation-based crowdfunding standing apart from other models due to the absence of rewards or financial returns for donors. This research focuses on understanding the motivating factors behind Saudi society's partici-pation in donation-based crowdfunding, specifically on the Ehsan platform. Through analyzing 30 successful campaigns, conducting surveys, and interviewing a social media influencer, we explore intrinsic and extrinsic motivations, campaign features that attract support, and the impact of influencers. Our findings highlight the significant positive influence exerted by in-fluencers, emphasizing the critical role of clear campaign descriptions and compelling story-telling. Additionally, we identify the preferred campaign types, such as debt, orphan spon-sorship, disaster relief, and the optimal timing for donor contributions. The study reveals that Saudi participants engage in donation-based crowdfunding campaigns on the Ehsan platform primarily driven by sympathy, personal satisfaction, and a sense of community. The trustwor-thiness of campaigns and the platform's user-friendly interface emerge as crucial factors in fostering donor engagement. Notably, our research underscores the higher success rate of se-curing sponsorships for younger orphans and the increased donor engagement during religious events. Moreover, this research recognizes the importance of sustainability in donation-based crowdfunding campaigns on the Ehsan platform. Future investigations will encompass an ex-tensive analysis of crowdfunding platforms in Saudi Arabia, contributing to further ad-vancements in this field.

CrowdChain: A privacy-preserving crowdfunding system based on blockchain and PUF

CrowdChain: A privacy-preserving crowdfunding system based on blockchain and PUF

Implemenasi Sistem Sharia Crowdfunding terhadap Efektivitas Penghimpunan Dana Zakat, Infaq dan Shadaqah (Studi pada Wahdah Inspirasi Zakat Kota Makassar)

This investigation intends to sort out how the sharia crowdfunding structure is completed in social occasion zakat, infaq and shadaqah resources at Wahdah Inspirasi Zakat, Makassar City. This sort of assessment uses emotional procedures with a humanistic juridical philosophy, the data sources used are fundamental and discretionary data, then, the data collection strategies used are discernment, gatherings and documentation. The data examination strategies used are data combination, data decline, data show, closures and affirmation. The eventual outcomes of this investigation show that the utilization of the sharia crowdfunding system in social affair zakat, infaq and shadaqah resources at Wahdah Inspirasi Zakat, Makassar City has experienced an addition of up to 80% during the use of crowdfunding because there are 2 models of crowdfunding stages used in get-together zakat, infaq and shadaqah reserves. can assist with expanding the assortment of zis reserves, to be specific boxinfak.id and wiz gifts. boxinfak.id and wiz gifts are utilized in gathering zakat, infaq and shadaqah reserves or muzakki in paying zakat, infaq and sadaqah, utilizing the crowdfunding framework truly helps the amil or muzakki in gathering or paying zakat, infaq and sadaqah.

Perspektif Maslahah Mursalah Penggunaan Fintech Syariah Dalam Investasi

This study aims to analyze the use of Sharia Fintech in investment from the perspective of Maslahah Mursalah on the Shafiq Website and Application. The research method used is a literature study, where data is collected through understanding and reading the literature related to the problem that is the focus of the research. This research is a review conducted to solve a problem, with a focus on critical and in-depth analysis of relevant and analytical library materials. The analysis method involves descriptive analysis and content analysis to draw conclusions. The results show that Shafiq's use of sharia fintech, particularly the crowdfunding system, has been formalized and is under the supervision of the National Supervisory Board, and is in accordance with regulations from OJK and DSN MUI. Shafiq has implemented sharia principles, including the prohibition of usury, gharar, and dzalim, with the aim of providing security and convenience in investing in accordance with sharia principles, as well as avoiding harm in accordance with the concept of Maslahah Mursalah.

Implementation of The Collaborative Funding Model for Sheep Fattening Farming at The Riungmukti Multipurpose Cooperative Kalapanunggal District, Sukabumi Regency, West Java

Sheep farming is an important income for rural communities. The fattening segment has better business prospects than breeding. This conducive business opportunity cannot be accessed bysheep farmerss, due to limited financial capital for purchasing fattening sheep. Community service activities aimed to provide funds to finance fattening by sheep farmers, using a crowdfunding system. Implementation of activities using the territorial mapping method, counseling and assistance to members and administrators of the Riungmukti Multipurpose Cooperative, Kalapanunggal District, Sukabumi, West Java. The program evaluation showed that crowdfunding system by strengthening the Ecobis 2-3-5 profit sharing pattern received appreciation from the majority of sheep farmers and investors. The Ecobis 2-3-5 pattern provides financial feasibility for investors, with a rate of return on investment value added of 11.42 percent/year, greater than interest on bank savings, deposits and interest on people's business credit loans (KUR). Cooperative program operational costs can be covered, as well as increasing employment and business opportunities for farmers. Increasing program performance can be done through investment promotions to attract investors, improving services to farmers, especially the movement to plant forage on empty and/or unproductive land with the addition of legume plants. It is necessary to run monthly communication forums between farmers for business motivation, exchange experiences, and increase the capacity for adopting science and technology.

CROWDFUNDING EQUITY AND FIRM PERFORMANCE AMONG ENTREPRENEURS: A STRUCTURED REVIEW

Malaysia's fastest-growing alternative company financing source is crowdfunding. For business owners with creative concepts who otherwise might not have raised the money, it is a seductive chance to take advantage of the audience's influence and launch products and initiatives. Equity-based crowdfunding systems allow investors to pool their funds to participate in businesses, enabling inexperienced investors to follow in their footsteps. This study aims to provide a comprehensive overview of the existing research on the relationship between crowdfunding and firm performance among entrepreneurs. While crowdfunding has gained prominence as a funding mechanism, there is a need to understand its impact on firm performance. This study used the PRISMA approach. The systematic search of academic databases using Scopus and Web of Science yielded a comprehensive selection of studies, reviews and articles related to crowdfunding for the firm performance. After applying an advanced searching approach using keyword crowdfunding, firm performance, and entrepreneurs. The analysis revealed that crowdfunding played a pivotal role in maintaining final finding data (n=30), which reviewed identified key themes, including crowdfunding performance and mechanisms, financing and economic impact, and crowdfunding and entrepreneurship. Expect validation is divided into three themes: crowdfunding performance and mechanisms, financing and economic impact, and crowdfunding and entrepreneurship. Our review synthesizes findings from over 30 studies, revealing diverse and complex relationships between crowdfunding and firm performance. This study highlights the significance of factors such as crowdfunding model choice and the cultivation of social capital. Further research is essential to provide a nuanced understanding of how entrepreneurs can leverage crowdfunding to enhance their firm performance. This study contributes to the growing body of literature on crowdfunding and offers insights that can inform both entrepreneurs and policymakers.

Application of EUCS and UTAUT Method to Analyze The Implementation of Donation-Based Crowdfunding System for Fundraising Mobile Applications

This research aims to determine the success of implementing the donation-based crowdfunding system in donation applications. This research will be carried out using a quantitative approach. Researchers will carry out observations and questionnaires using accidental sampling to ask respondents to answer questions that have been created in the form of a Google Form link. Researchers collected samples using the purposive sampling method. 100 people were used as respondents in this research. SmartPLS was used to carry out inferential data processing. In accordance with the results of the analysis discussion, it can be concluded that the variables in the UTAUT and EUCS models that are proven to have a positive and significant influence in measuring the level of success in implementing the donation-based crowdfunding system in applications are accuracy, content, facilitating conditions, performance expectancy, price value, social influence, user satisfaction, behavioral intention, and use behavior. Meanwhile, the effort expectancy and perceived credibility variables were proven to have no positive or significant effect in this research. Based on data analysis, the biggest variable that influences the level of success in implementing the donation-based crowdfunding system in applications is the behavioral intention variable towards use behavior. The second variable that has the most influence is performance expectancy on perceived credibility. Meanwhile, the other variable is user satisfaction with behavioral intention. From the results of the data processing that has been carried out, the variable that has the smallest influence on the level of success in implementing the donation-based crowdfunding system in the application is effort expectancy on behavioral intention. Next is the variable perceived credibility on behavioral intention.

Analysis of Influencing Factors of Public Crowdfunding Based on Social Media- -Take “Water Drop Fund” as An Example

With the popularity of mobile phone clients and the rapid development of Internet, social media has infiltrated into people’s daily lives. In this context, China’s public crowdfunding has developed and grown, forming a unique operating mode under the impact of the times. Many public crowdfunding platforms based on social media such as Weibo and WeChat have emerged. “Water Drop Fund” is a typical new public welfare under the combination of social media and public welfare. By studying the “Water Drop Fund” platform, we can discover the epitome of this new form of public welfare under the context of the new era. This article takes “Water Drop Fund” as an example, collects relevant information about applicants on the public welfare platform, and uses regression analysis to describe the different influencing factors in this crowdfunding project. It summarizes the relationship between various factors and the crowdfunding rate, and further discovers that the target amount, the number of confirmations, and the number of reposts are the key factors affecting this new type of public welfare crowdfunding. Suggestions for the future development of the public welfare crowdfunding system are made based on these key factors.

Medtrust - A Decentralized Model for Medical Crowdfunding Based on Smart Contract Using Etherium

Abstract: Trust and Transparency is a great challenge that the current world encounter when coming with systems that really matters the day to day life. When it comes to financial systems, the requirement becomes stronger. The paper suggests the implementation of a medical crowdfunding system incorporating trust and transparency with blockchain. With decentralized approach. The paper explains implementation of a Crowdfunding system based on blockchain using smart contract. The Paper explains the architecture, implementation and Test cases that been used and a study of the how the model solves the issue of trust. The system is been tested and deployed with hardhat framework over sepolia Test Network.

Decision Analysis under Behavioral Economics—Incentive Mechanism for Improving Data Quality in Crowdsensing

Due to the profitability and selfishness of crowdfunding system users, under fixed budget conditions, there are problems, such as low task completion rate due to insufficient participants and low data quality. However, the existing incentive mechanisms are mainly based on traditional economics, which believes that whether users participate in tasks depends on whether the benefits of the task outweigh the costs. Behavioral economics shows that people judge the value of gains and losses according to a reference point. The weight given to losses is more important than the weight given to the same gains. Therefore, this article considers the impact of reference dependency and loss aversion on user decision-making and proposes a participant selection mechanism based on reference dependency (PSM-RD) and a quality assurance mechanism based on loss aversion (QAM-LA). PSM-RD uses reference points to influence user pricing and selects more participants based on relative value. QAM-LA pays additional rewards based on the data quality of participants and motivates them to improve data quality by reconstructing utility functions. The simulation results show that compared with the ABSee mechanism, data quality has improved by 17%, and the value of completed tasks has increased by at least 40%.

A decentralized trust management mechanism for crowdfunding

Crowdfunding is an act of raising funds from the public to support an individual or organizational project, and the success of crowdfunding projects lies in gaining backers' trust. In practice, however, crowdfunding platforms are rife with fraudulent crowdfunding projects. While some crowdfunding platforms use third-party auditors to verify projects before publishing, this also runs the risk of collusion between crowdfunders and auditors. The recent introduction of blockchain has increased the transparency of crowdfunding, but they, too, lack fraud prevention measures. Obviously, existing crowdfunding trust management schemes are not applicable under a zero-trust scenario. In this study, we propose a blockchain-based trust management mechanism for crowdfunding to address the fraudulent behavior in the existing crowdfunding systems. We introduce an auditor committee to audit crowdfunding projects credibly. A random selection algorithm on the blockchain enables the distributed generation of auditor committees with a trade-off between the randomness of selection and auditor expertise. The audit results are based on independent auditing by the audit committee members and are presented by the smart contract, avoiding the influence of third parties. In addition, we also provide an incentive mechanism to encourage auditors who perform accurate audits. Theoretical analyses and experiments show that our scheme can effectively deal with malicious behaviors and has an acceptable overhead.

Securities Crowdfunding (SCF) System As An Alternative To MSMEs Funding In East Java

Fintech has a significant impact on the ease of society in meeting their financial needs. Fintech through Securities Crowdfunding can also be an alternative to new funding by expanding access to capital for MSMEs and start-ups. With the advancement of technology and information systems that are present in the form of Securities Crowdfunding. Making it easier for MSMEs to obtain funding, in addition to simpler requirements, this Securities Crowdfunding platform can be accessed through gadgets or computer devices with the help of the internet anywhere and anytime. The purpose of this paper is not only to explain the concept of the Securities Crowdfunding system in Indonesia, but also to analyze the potential of the Securities Crowdfunding,especially in East Java.

Crowdfunding using Blockchain Technology: A Review

Crowdfunding is a method of obtaining money 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. This essay discusses the shortcomings of the present crowdfunding systems in use and makes recommendations for how to make things better.

Leveraging the Power of Blockchain Technology for Building a Resilient Crowdfunding Solution

Crowdfunding is a fundraising method that involves raising small amounts of money from a large number of people, typically through online platforms. It allows individuals, businesses, or organizations to present their projects, ideas, or causes to a global audience and request financial support from a crowd of potential backers. Crowdfunding has gained popularity across various industries, including technology, arts, entrepreneurship, social causes, and more. It provides a democratized approach to financing, allowing innovative and creative ideas to come to life with the support of a diverse community of backers. The current research explores the potential of blockchain technology and smart contracts to revolutionize traditional crowdfunding methodologies. Traditional crowdfunding has been plagued by issues such as lack of transparency, centralized intermediaries, slow payment processing, fraud, and limited access. In response to these challenges, blockchain solutions offer a transparent and decentralized approach, allowing contributors to track their contributions, eliminate intermediaries, automate fund disbursement, and enable cross-border transactions. Tokenization and reduced entry barriers further enhance accessibility and participation. The current research presents a conceptual model and implementation of a smart contract-based crowdfunding system using Solidity, addressing these issues and providing a foundation for future research in the field of decentralized crowdfunding. The research scope has been expanded to encompass Initial Coin Offerings (ICOs) as a means of fundraising for startups. Within this context, fungible tokens, which adhere to the ERC-20 standard, are generated using the OpenZeppelin library. These tokens are then subject to approval by the startup, granting authorization to a crowdfunding manager for the purpose of distributing tokens to contributors based on their respective contributions. The percentage of tokens made available for distribution can be customized to suit the specific needs and preferences of the startup.

Blockchain Based Crowdfunding System

Abstract: A fresh and creative approach to finance various business models is through crowdfunding, which enables individual business founders to submit fundraising requests. Businesses may be enlightening or commercial. Capitals are frequently given away in exchange for future goods or deeds. This entails connecting investors and businesspeople using social media on the internet in exchange for incentives to raise capital for various company models. Social networks and the Internet are becoming emerging platforms. The internet and social media are crucial for charitable organisations like dealers to raise money. After giving a general summary of the various crowdfunding platforms that have lately surfaced, this article first examines the role that technology plays in crowdfunding. Crowdfunding is based on assurance between investors and stakeholders. The appearance of new technologies is very promising for both organizations and discrete crowdfunding. Crowdfunding stand using blockchain technology increase the credibility of diverse projects and businesses, and attract huge amounts of money from investors and sponsors. key word: Crowdfunding, blockchain technology, synergy, smart contracts. The foundation of crowdfunding is trust between stakeholders and investors. The emergence of new technology is incredibly encouraging for businesses and discrete crowdfunding. Blockchain-based crowdfunding platforms boost the legitimacy of many different projects and enterprises and draw in sizable sums of money from sponsors and investors. Key words: Blockchain technology, collaboration, smart contracts, and crowdsourcing.

THE ROLE OF CROWDFUNDING SYSTEMS DURING CRISES AND MILITARY ACTIONS

This article is about how crowdfunding and crowdinvesting systems can be used during crises and hostilities. This article provides examples of different types of possible crowd-system. Research subject. Crowdfunding and crowdinvesting systems as the institutional instruments (P2P) which are used during crises and hostilities, among them are as follows: Violence Crowdfunding systems, General Crowdfunding Systems, and Crowdinvesting Systems alike. Methodology. The authors used a complex of research methods and approached as interdisciplinary approach, evidence-based approach, and practical business cases. Also, general scientific research methods were used (analysis and synthesis of information), as well as an inductive and deductive research methods. The goal of the article is to consider the prospects for the use of crowdfunding platforms as an element of solving the military crisis on the territory of Ukraine. Conclusions. The Special attention was paid to the war crises in Ukraine and the situation of the crowdfunding and crowdinvesting systems in Ukrainian society. It is provided detailed examples of the use of crowdsourcing systems in Ukraine during the war nowadays and explained the need for the creation of an independent Ukrainian crowdfunding platform. Additionally, the ways of the creation of such a platform are clarified. Ukrainian society during the military crisis gained experience in crowdfunding that was not familiar or even available. However, Ukrainian society is very actively popularizing crowdfunding or rather its foundations. Crowdfunding is currently most common when looking for funding for military needs: from mass arms purchases to financing individual soldiers. In a short time, thanks to the stress of war, many people have made crowdfunding a part of their lives and instilled this habit in society. The first crowdfunding platforms are already appearing to give Ukrainians the opportunity to fund some Ukrainian startups, companies, and ideas. One of the most difficult elements in creating and launching a crowdfunding platform is not building the platform itself, but integrating it. A decade ago, the creation of a crowdfunding platform and integration of the entire crowdfunding system, was a complicated and costly procedure. The most difficult thing is to integrate the platform into society so that mass use can begin.

Crowd Funding using Smart Contract in Blockchain

Abstract: Crowdfunding is that the practice by which a personal company can raise funds for a project, where an outsized number of people contribute touch of money, typically via the online. In today’s world whenever an entrepreneur wants to implement his idea into the world, he needs some money to bring his idea to life. Earlier when crowdfunding platform weren't available the entrepreneur were ready to target only a limited number of people for funding of the project also it absolutely was very difficult for them to attain dead set the those who can fund the project. Now a day’s sort of crowdfunding platform like Kickstarter exists which allows the entrepreneur to post their ideas on the platform where backers can see the project and might contribute some amount of money thereto project. These crowdfunding platforms made it easier for the entrepreneur to reach resolute an outsized crowd worldwide who can support their project. within the prevailing crowdfunding system, despite having many advantages there are some problem related to these systems like charging an infinite amount of money for maintenance, transparency within the system, and trust. Our application can remove these problems related to the current crowdfunding system by providing a more transparent system where every transaction could also be stored on the blockchain using the Smart Contracts.

STO: Equity Crowdfunding Innovation for Indonesian Start-Up

Blockchain and crowdfunding are innovations that have brought significant changes to business and funding activities around the world. The existence of blockchain has created cryptocurrency, which is currently popular among many investors worldwide, without exception for domestic investors. On the other hand, crowdfunding tools such as equity crowdfunding could develop a blockchain-based funding system. This system uses a cryptocurrency security token as an investment instrument, where the initial offering is referred as a Security Token Offering (STO). This study aims to analyse a blockchain-based equity crowdfunding system using cryptocurrency security tokens and design the system for start-up companies in Indonesia. This study used a descriptive method with qualitative approach used SWOT analysis and quantitative approach with questionnaire as supporting data. This study indicates that the existence of blockchain-based equity crowdfunding provides opportunities for start-ups in Indonesia to obtain funds for developing their business.
 Keywords: blockchain, crowdfunding, cryptocurrency, start-up company, security token offering