Block Chain - Based Crowd Funding Using Ethereum

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056
Volume: 09 Issue: 05 | May 2022 www.irjet.net p-ISSN: 2395-0072
© 2022, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page 397
Block Chain - Based Crowd Funding Using Ethereum
Ayush Sharma, Prashant Sharma, Nitin Goel, Ramendra Singh
Ayush Sharma, MIET College , 157/3 Nehru Nagar, Meerut
Prashant Sharma, MIET College, 33/1 , Gandhi Nagar, Meerut
Nitin Goel, MIET College, 302/1 Panchsheel colony, Meerut
Asst. Prof. Ramendra Singh, Dept. of Information Technology, MIET college, UP, India
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Abstract - Crowd funding has changed the way startup or
any social working organisation used to raise funds for its
operation in the society. Crowdfunding have innovated to
the way start ups have to raise fund by roaming around
banks or investors now they just have online their idea on
social media or website they start raising funds. But due to
false fund raisers or illegal investor have lower the trust of
government and social workers in the society . Blockchain,
emerge in few year of time which guarantee fraud free
transaction between investor and fund raiser. Many block
chain based crowd funding have already start raising funds
in term of crypto currency successfully. Our study based on
crowd funding platform which use decentralize, Fast and
secure transaction by using arbitrary nodes in the pool.
Key Words: BlockChain,Crowdfunding,Decentralize,
Ethereum
1.INTRODUCTION
Crowdfunding (CF) is a general phrase
that mean obtaining funds, typically in small amounts,
from a vast population known as the crowd in order to
support a business initiative, cause, loan, or other financial
necessity via the designated platform. In the present
Covid-19 pandemic crisis, practically every country faces
the same challenge in dealing with this problem,
particularly in terms of the cash required. Many
techniques have been implemented by the government in
order to manage government money in order to combat
the Covid-19 epidemic. This situation induced community
for donations to assist the government in combating the
Covid-19.
Of fact, raising funds is a difficult procedure since it
involves confidence between many parties, including
funders, middlemen, or organisations that serve as a
location to hold temporary cash. Trust is the key capital
for fundraising organisations which built credibility of
investors to commit their monies to fund recipients.
Many non-profit invest for help, as in the case of the Covid-
19 pandemic. This important factor for investor which is
TRUST it convince investor to provide money to the
organisation. Not to mention a non-profit organisation
that leverages technology for sending money with trust
and simplicity.
This research based on the processes that help investor
for fundraising with the help of blockchain technology.
This will automat fundraising process without worry of
fraud or wrong place allocation of fund. By using smart
contract technologies. This technique can be employed in
the communications and medical industries.
By using block chain technology it raises confidence and
trust of investor along with recipient of fund can validate
the fund source by insuring in legalities of fund itself.
The technique used in this study, according to the
statement above, is library research. To give references for
this study, it draws on sources from international and
national periodicals, as well as other similar works.
1.1 System Design Crowdfunding Flow Process
(Traditional)
Each fundraising group must have its own set of rules and
methods. The entity inside the organisation, on the other
hand, is inextricably linked to the four primary entities:
the donor, fundraiser, depository fund (Bank), and fund
receiver. The following is a broad description of the
connection between entities in a fundraising organisation:

Fig. 1 : Crowd Funding Mechanism
Crowd funding mechanism made of three process:
1.1.1 All-or-Nothing (AoN)
This AoN scheme is a crowdfunding process scheme that
implements if fundraising does not reach the target, then
the funds will be returned to the funders. The following is
an illustration for the AoN crowdfunding process scheme :
Fig -2: AoN crowdfunding process scheme
1.1.2 Keep-It-All (KIA)
Not much different from the AoN scheme, this scheme
applies rules if data collection is not achieved then the
funds will be returned in accordance with the policies of
fundraising. This scheme (Fig-3) can be described as
follows:
Fig-3: Scheme for CrowFunding
1.1.3 Stretched Goals Scheme(SGS)
In this scheme, there is a development of the fundraising
goal is expanded and bound by the statement can add
some predetermined additional values to products and
services, if the fundraising goal is achieved, then the
fundraised can take all the actions needed to add that
value. The model od this scheme (Fig-4) can be described
as follows:
Fig-4: SGS Process
Above are three main process of crowd funding fund
generations mechanisms, which are fundraising
registration, investor registration, process of fundraising
process:
2. Registration - Fundraiser
Before submitting a proposal to a fundraising platform, of
course fundraisers must register to a fundraising platform
service providers of course, each service provider has its
own rules who can submit proposals to find funds in their
organisations. In general, the fundraiser registration
process only involves two entities, the fundraiser and the
service provider of fundraising platform itself. The
fundraiser will register to service provider of fundraising
platform. In this case, the data from the fundraiser is kept
inside operator database and accessed by specific clients

who are with the restrictions that apply to the fundraising
platform operator. Only the service provider can access
the fundraiser's transaction or history data.
2.1 Donation
Investor first Register the financing procedure for
assisting fundraisers begins with investor
undertaking surveys of numerous proposals
produced by fundraisers.
If the Investor receives a proposal that aligned to his
preferences, then he proceeds with the process of
donating monies either through the fundraising
organisation or directly to the fundraiser.
Fundraising groups may generally make it simpler for
funders to transmit contributions to them. With
today's technology, funds may be sent through
electronic money, virtual accounts, and bank
transfers, as well as through traders who work with
these fundraising groups. In this scenario, easier or
more alternatives for transferring funds have a direct
impact on the desire of the funder to make
transactions back to the fundraising organisation.
Not all fundraising organisations can interface with
the companies listed above, but the entities engaged
in the process include funders, startup, and banks for
transaction. Archive transactions stored in database
of a fundraising platform of operator.
2.3 Disbursement
The final key use case is fund transistor . Of course, each
fundraising organisation has its own terms and conditions
for disbursing funds. The process takes time as they have
to go through the verification and validity. Investor may
absolutely withdraw contributions more easily from
organisations that already uses web portal or mobile
applications.
3. CONCLUSIONS
At last we can say that blockchain can be useful for fast
and secure fund transfer in fund generation platform for
society
so following are achievements of blockchain are
● Tokenization
● Having the ability to serve high demand
● Having the ability to retain all the positives of the
standard Crowdfunding Platforms
Implementation
REFERENCES
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[2] Baber, H. (2019). Factors Underlying Attitude
Formation Towards Crowdfunding in India. International
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[3] Hartmann, F. , Grottolo, G., Wang, X., & Lunesu, M. I.
(2019, February). Alternative Fundraising: Success Factors
for Blockchain- Based vs. Conventional Crowdfunding. In
2019 IEEE International Workshop on Blockchain
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IEEE.
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and financial inclusion. CGAP (Consultative Group to Assist
the Poor) Working Paper.
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anthropological inquiry. Univ of California Press.
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http://www.iosco.org/research/pdf/swp/Crowd-funding-
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Available at SSRN 3133176.

Block Chain - Based Crowd Funding Using Ethereum

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