Crowdfunding using Blockchain for Startups and Investors

Abstract

Crowdfunding is the practice of leveraging modest sums of money from lot of different people to launch a new business endeavor. Crowdfunding makes use of a straightforward connectivity of large network of people via social media and crowdfunding websites to link investors and entrepreneurs, with the potential to increase entrepreneurship by broadening the pool of investors beyond the traditional circle of owners, relatives, and venture capitalists. By providing them with the necessary financing, the online money-making strategy known as crowdfunding supports the ideas of creative people. Crowdfunding allows individuals to make financial investments in newly formed businesses. The problem with the existing crowdfunding model is that the intermediary provides no assurances to the investor who contributed money to the project, and the investor has no control over the money they invest. A private, secure, and decentralized crowdfunding platform is offered using a blockchain-based approach to address this important problem.