Research on the Urban Renewal Investment and Financing System Based on Blockchain

Abstract

Currently, urban renewal projects primarily rely on traditional financing methods such as government fiscal support, bank loans, and corporate self-funding. However, these models exhibit significant limitations. As urban renewal progresses towards high-quality development, there is an urgent need to explore innovative financing m echanisms t hat o ffer g reater efficiency, transparency, and sustainability. In this context, the introduction of blockchain technology presents a novel breakthrough for urban renewal financing. The decentralized, immutable, and smart contract-enabled features of blockchain can optimize capital flow, e nhance c redit s ystems, reduce fi nancing co sts, an d attract more social capital participation. By leveraging blockchain and Interplanetary file s ystem ( IPFS) t echnologies, i t i s p ossible to achieve full traceability of fund flows among government entities, financial institutions, enterprises, and investors, thereby reducing information asymmetry and strengthening mutual trust. Real-time on-chain recording of fund utilization ensures dedicated use of funds, prevents misappropriation or abuse, and improves the efficiency o f b oth fi scal re sources an d so cial ca pital. Moving forward, it is essential to integrate policy support with technological pilots to gradually construct a "blockchain + urban renewal" digital financial i nfrastructure, p roviding n ew m omentum for high-quality urban development.