Implementing Decentralized Crowdfunding Application Using Ethereum Blockchain

Abstract

A decentralized crowdfunding system using Ethereum blockchain technology is proposed to resolve problems within traditional crowdfunding portals, such as a lack of transparency, high dependence on intermediaries, and poor supervision from donors. The proposed system is capable of automating refund mechanisms as well as milestone-based fund disbursements while maintaining transparent transaction logs through the use Solidity-based smart contract. Unlike the traditional models where funds are kept and controlled by custodians and managed by third parties, this system enables participants to control the release of funds based on completion of predefined project stages. The system was implemented using Solidity, React.js, Node.js, and deployed on Sepolia Ethereum Testnet. Etherscan was used for transaction validation, and MetaMask for user wallet interactions, enabling successful campaign creation, secure contribution submission, and decentralized fund flow. Limitations include logic flaws in post-deadline countdown timers and a focus on a single tokens type. Potential enhancements include automated refunds for failed campaigns, fiat currency on-ramps, and fund control via DAO voting. The proposed framework focuses on solving practicality, security, and efficiency issues in existing crowdfunding models using blockchain technology.