Blockchain-Based Crowdfunding: A Trust Building Model

Abstract

Blockchain-based crowdfunding is one of the new, upcoming alternatives to the traditional centralized approach to crowdfunding. Traditional crowdfunding platforms are vulnerable to data leaks, high transaction and platform fees, and rampant frauds which happens due to the anonymity of user’s identity i.e., users cannot be identified when they commit cybercrimes. As blockchain is immutable and decentralized, it can reduce the possibility of data breaches. This brings in transparency as there is no central authority over the blockchain-based crowdfunding system. This paper attempts to solve these existing issues with the aid of a digital identity management system with an underlying Blockchain system. By implementing blockchain in a digital identity management system, malicious users can be identified and action can be taken against them. This paper explores donation-based crowdfunding using Ethereum as a framework and has been tested on the Rinkeby Test Network. This system can conduct several crowdfunding campaigns simultaneously. This paper explains the smart contract written in Solidity language in detail.