Crowdfunding Platform using Blockchain Optimization

Abstract

Abstract—The crowdfunding sites that are in use today make use of a centralized system in which the funding and validation of crowdfunding campaigns are done by an authority figure. This has resulted in higher transaction fees and a lack of transparency in the way the funding is being done by donors. This paper aims to propose a Decentralized Crowdfunding Platform using blockchain technology to overcome the current challenges. A new crowdfunding system based on smart contracts using Ethereum is proposed. This new system will ensure a reliable environment for executing smart contracts. A new crowdfunding system based on smart contracts using Ethereum is proposed. This system will have a Startup Verifi-cation process and an Iteration-Based Fund Release process. In the current crowdfunding system, crowdfunding sites release the funds in bulk to the startup. In the new system that is being proposed, the funds will be released in stages. A new system of voting will also be implemented in the new system. This will enable donors to vote based on the cryptographic proofs and reports that are presented by the startup. The software development framework of the platform is based on an effective decentralized technology stack such as Solidity for smart contract development and execution, Hardhat for software development and testing, and React.js combined with Web3.js for front-end interface development. The incorporation of the blockchain technology stack guarantees that all financial transactions are transparent, secure, and tamper-proof. The efficacy of the proposed decentralized approach is measured by how effectively it avoids the costs of intermediaries, is auditable in real-time, and is democratic in nature for all donors. Index Terms—Blockchain Technology, Ethereum, Smart Con-tracts, Solidity, Decentralized Finance (DeFi), Crowdfunding, Decentralized Autonomous Organization (DAO), Iteration-Based Funding, Milestone Verification, Web3.js, Hardhat, Metamask, Trustless Execution, Cryptographic Transparency, Digital Wallet Authentication.