A Transparent, Distributed, and Secure Crowdfunding Platform Based on Blockchain

Crowdfunding refers to pooling of funds for a new venture or a project especially via the Internet. The geographical dispersion of the entrepreneurs and investors necessitates a mutually trustworthy, safe, and reliable environment for such transactions. Since the investors are not collocated with the entrepreneurs, the primary challenge is to convince each other that the funds allocated for a specific purpose are utilized on that project itself. In addition to this, minimum intervention from the political or financial institutions and a decentralized fund management not only encourages the investors to respond overwhelmingly for such investments but also helps the entrepreneurs to go beyond the geographical boundaries. Since, crowdfunding eliminates the mediation from banking or other non-banking financial institutions a key challenge is the trust. Trust could be built only when there is transparency and transparency is not a one-time process. It is a recurrent step where the necessary information has to be shared with all the interested parties in the process and in a real-time environment. Such attempts boost the confidence of the investors and can help raise more funds.