Innovative Blockchain-Integrated Crowdfunding Solution for Sustainable Business Startups

Abstract

However, users perceive the blockchain crowdfunding platforms as promising terms of financial tool for business startup; meanwhile, existing platforms fail to provide transparent operations or demonstrable impact measurement or provide an incentive to long term investors. Using smart contracts with linked sustainability and decentralized administrative controls, GreenFundChain provides a new blockchain platform that is able to meet three main features: tokenized investments allowing for social and environmental benefits to be measured, and supported by tokenized investments. The platform authorizes funding when the Environmental Social Governance (ESG) performance targets are completed after sustainability audits are executed by AI systems combined with Internet of Things monitoring. The responsibility of Decentralized Autonomous Organization responsible for operating through the community-based governance decision includes the fall on fund distribution along with project selection. As sustainability performance increases, the value of GreenImpact Tokens (GITs) increases and investors are more inclined attracted to projects through extended participation. Carbon credit functionality is added to the new venture to create eco-footprint marketables combined with sustainable micro-band investments. Implementation of prototyping of the platform, guarantees transaction security and smart contract efficiency and impact verifiability accuracy based on which it becomes a trust-building platform and prevents fraud from crowdfunding. It has single and significantly better protection for investors, and an equally good transparency as well as sustainability verification compared to other solutions. Through this research project, we make a contribution to the development of blockchain financial ecosystem by creating a link aimed to support the crawling crowdfunding campaigns.