Leveraging the Power of Blockchain Technology for Building a Resilient Crowdfunding Solution

Crowdfunding is a fundraising method that involves raising small amounts of money from a large number of people, typically through online platforms. It allows individuals, businesses, or organizations to present their projects, ideas, or causes to a global audience and request financial support from a crowd of potential backers. Crowdfunding has gained popularity across various industries, including technology, arts, entrepreneurship, social causes, and more. It provides a democratized approach to financing, allowing innovative and creative ideas to come to life with the support of a diverse community of backers. The current research explores the potential of blockchain technology and smart contracts to revolutionize traditional crowdfunding methodologies. Traditional crowdfunding has been plagued by issues such as lack of transparency, centralized intermediaries, slow payment processing, fraud, and limited access. In response to these challenges, blockchain solutions offer a transparent and decentralized approach, allowing contributors to track their contributions, eliminate intermediaries, automate fund disbursement, and enable cross-border transactions. Tokenization and reduced entry barriers further enhance accessibility and participation. The current research presents a conceptual model and implementation of a smart contract-based crowdfunding system using Solidity, addressing these issues and providing a foundation for future research in the field of decentralized crowdfunding. The research scope has been expanded to encompass Initial Coin Offerings (ICOs) as a means of fundraising for startups. Within this context, fungible tokens, which adhere to the ERC-20 standard, are generated using the OpenZeppelin library. These tokens are then subject to approval by the startup, granting authorization to a crowdfunding manager for the purpose of distributing tokens to contributors based on their respective contributions. The percentage of tokens made available for distribution can be customized to suit the specific needs and preferences of the startup.