Crowdfunding is an online money-raising strategy that began as a way for the public to donate small amounts of money to help creative people finance their projects. Through crowdfunding, individuals are able to invest in entrepreneurial start-ups using an intermediary agency like a broker or dealer.
The problem with the current sites is that they don’t provide a donor guarantee policy and they do not have control over the money they donated. Our Trusted Crowd-Funding Platform is a solution to these issues of the previous system. It uses smart contract technology to develop a trusted Crowd-Funding platform.
Through this, it will provide a safe, secure and transparent way for crowdfunding. The blockchain will record all the transactions and store them as a block. Blockchain provides transparency, trust and security to this system. Our system intends to help the creators and donors to increase funding, and achieve a high level of trust amongst them.
Smart contracts in crowdfunding aim to solve three major problems – ease up KYC/AML verification, eliminate dependency on third parties such as banks due and speed up pay-in and pay-out transactions in the crowdfunding offerings.
In crowdfunding, a smart contract is a self-executing agreement between investor and fundraiser, platform and user, or between other parties depending on which process needs to be automated and put into the blockchain ecosystem.
As a part of the bigger concept such as blockchain integration in crowdfunding, smart contracts are one of the ways that can enhance the platform’s technological capabilities and attract investments and new users.
- It is user-friendly.
- The system helps the user to view transactions by investors with a status of whether the transaction is manipulated or not.
- Users can add project details easily and get approved by the admin.