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By: Urjita More, Shashank Kumar, Vishik Shende, Rohan Anil Tade, and Ambuj Kumar
Crowdfunding has transformed the way individuals and startups secure funding for their projects by gathering small contributions from many people, usually via online platforms. However, traditional crowdfunding platforms face significant challenges, such as fraud, delayed project deliveries, lack of transparency, and inefficiency. Blockchain technology, with its decentralized, transparent, and tamper-proof ledger, has emerged as a potential solution to these challenges. This paper examines the incorporation of blockchain into crowdfunding platforms, with a particular emphasis on how smart contracts contribute to transparency, security, and efficiency. By automating agreements and enabling decentralized control, blockchain-based crowdfunding platforms address many of the shortcomings of traditional systems. Several case studies and research findings from existing platforms, like WeiFund and Acorn demonstrate, how blockchain can reduce fraud, enhance contributor trust, and streamline project management. Despite the benefits, challenges, like scalability, cryptocurrency volatility, and regulatory issues, still persist. This paper also discusses potential future developments, such as integrating advanced token standards and alternative consensus mechanisms, like Proof of Stake (PoS), to improve the overall functionality and adoption of blockchain-based crowdfunding platforms.
Keywords: Decentralized crowdfunding using blockchain technology ensures transparency, security, trustless transactions through smart contracts and immutable records
Citation:
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