Crowdfunding Using Blockchain for Startup Ventures

Abstract

Nowadays, crowdfunding has become a popular source for raising funds, especially for startups or projects. Many startups opt for crowdfunding platforms to raise funds by exchanging equity because it is affordable and straightforward. However, concerns related to security, investor abuse, and illegal transactions have emerged, which have led to an investigation of the implications of blockchain technology in crowdfunding. In our proposed system, we integrate the functioning of crowdfunding platforms with the blockchain technology. The system will provide a platform for startup ventures where they can pitch their ideas to potential investors. The investors can invest in the ventures in return of equity. All the process is handled by the smart contracts making it transparent, immutable and secure. This reduces the risk of fraudulent transactions. The main advantage of the system is it uses platform sensitive token that can be exchanged with INR and further converted to ER20 token that can be used to communicate with ethereum blockchain. This eliminates the need of having ethers or any kind of wallet for the investors. We have created a mobile based application using Flutter Framework and deployed the smart contract using truffle. We have created a backend using NodeJs server which utilizes the functions from smart contract by creating the instance for them. We have also used MongoDB cloud atlas as a database along with the Ethereum Blockchain.