DeFiDonate: Innovations in Decentralized Finance (DeFi) through blockchain technology

Abstract

This paper proposes DeFiDonate, a web-based decentralized application that facilitates the transparency and privacy of donations to charities while also increasing trust through the use of blockchain and various Decentralized Finance (DeFi) solutions. The problem with traditional donation models is that they lack traceability and are centralized, with limitations and restrictions on donors. DeFiDonate proposed using Elliptic Curve Cryptography (ECC), Non-Fungible Tokens (NFTs), a form of smart contracts, and Elliptic Curve Digital Signature Algorithm (ECDSA).DeFiDonate provides flexibility for donors by making either a direct donation to beneficiaries or donating to a liquidity pool, then distributing funds through a decentralized voting system and encrypting sensitive data, like the wallet addresses, donation amounts, and donors' NFT identifiers with ECC, meaning it's recorded in both on-chain and off-chain safety, and confirming the transactions and validating the signature is unauthentic with ECDSA, the implementation of DeFiDonate composed on Django and Solidity for the creation of smart contracts; Truffle, Ganache, and MetaMask for local testing. These results indicate that the system is safe for use, as it provides transaction integrity and information security. Based on performance analysis carried out in Truffle Develop, the use of NFTs within contracts was found to be associated with a notable decrease in execution time. Another application blockchain developers can discuss is DeFiDonate, which exemplifies a trusted, decentralized, and transparent method of digital giving.