CROWDFUNDING SMART CONTRACT: SECURITY AND CHALLENGES

Abstract

Distributed ledger-based technology crowdfunding is an appealing method for e-economy and its revolutionary concept enable improved credibility and confidentiality in transaction. It has a unique data security concept, which provides immutability, traceability, increased trust and faster settlement. An interesting use case of distributed ledger is the conventional crowdfunding. In the recent years, the acceptance of blockchain for commercial and businesses has significantly increased. Some of the industries, where the blockchain method can be applied are food supply chain, healthcare, crowdfunding, and government services. In this paper, the crowdfunding use case is chosen to be reviewed. Nonetheless, the conventional approach of crowdfunding has a few downsides, which drive away genuine investors into a legitimate business. To date, crowdfunding i.e., monetary funding is typically unregulated, and a lack of end-to-end monitoring system has led to many fraudulent projects. In addition, the traditional crowdfunding lacks transparency and proper agreement (contract) for investors. This paper aims to survey the security issues and challenges of crowdfunding and highlighted the benefits of using blockchain for such use case.