Increasing transparency and security in crowdfunding with Blockchain technology

How QIT developed a decentralized platform to securely fund creators and entrepreneurs.

About the client

The client is a leading technology services provider that offers content management solutions, custom development, and mobile applications. With extensive expertise in delivering solutions in different industry segments, the client has a strong reputation for delivering cutting-edge technology solutions that meet their customers’ needs.

As part of their portfolio, the client sought to develop a blockchain-based crowdfunding platform that would provide a more secure and transparent process for social funding. The platform would enable backers or individual investors to directly fund creators and entrepreneurs while ensuring that the campaign’s funds are only released when more than 50% of the contributors have approved it. The client approached QIT to develop this platform, leveraging their expertise in blockchain technology and smart contract development.

Industry: Blockchain
Location: USA

Product Functionality Explained

Our team recognized the need for a secure, transparent, and robust crowdfunding platform that would provide backers and individual investors with the ability to directly fund creators and entrepreneurs. To address this need, we developed a blockchain-based crowdfunding solution that uses the Ethereum blockchain to deploy smart contracts on the network.

The crowdfunding platform operates on a decentralized platform, allowing contributors to donate directly to creators without the need for intermediaries. Funds are only released when more than 50% of the contributors approve the campaign, and the funds go directly to the vendor account from whom goods or services were purchased.

Challenge

One of the key challenges of the existing crowdfunding platforms was the lack of transparency and accountability, which often led to fraud and misuse of funds. This not only resulted in financial losses for investors but also damaged the reputation of crowdfunding platforms as a viable fundraising option.

Another challenge was the limited payment options available on crowdfunding platforms, which made it difficult for investors to participate in campaigns that only accepted a specific type of currency.

Solution

To address these challenges, we provided 2 dedicated developers for the Client’s team. They developed a blockchain-based crowdfunding platform that uses smart contracts to enforce funding terms, increase accountability, and provide transparency. The platform also accepts all major cryptocurrencies, making it easier for investors to participate in campaigns.

Using the Ethereum blockchain, we developed a decentralized platform that eliminates the need for intermediaries, reducing costs, and increasing the amount of money that goes directly to the campaign. Every transaction is stored on all nodes on the network, making the data immutable and reducing the risk of fraud.

blockchain crowdfunding platform interface

What Job Was Done

Our goal was to create a social funding process that is transparent, robust, and secure. By developing a blockchain-based crowdfunding platform, the company was able to provide backers and investors with a more direct and transparent way to fund creators and entrepreneurs. The platform eliminates the need for intermediaries, increasing the amount of money that goes directly to the campaign.

Implemented Features

The platform was implemented using Ganache GUI for the Ethereum test platform, Truffle for deploying smart contracts on the test network, React.js with Next.js for front-end development, and Solidity for writing smart contracts.

The platform’s workflow involves the initiator submitting a campaign request to the manager, who then creates the campaign. The initiator sets milestones for the campaign, and when a contributor finds the campaign interesting and tries to donate to the campaign, the initiator posts a request for campaign money withdrawal to purchase goods or services from a vendor. Contributors approve the request, and the donation is successful, making the contributor an approver. The initiator tries to finalize the request, and if more than 50% of contributors have approved the request and the balance is greater than the requested amount, the vendor receives the money.

Outcome

The blockchain-based crowdfunding platform provides transparency, security, and accountability in the funding process. Using smart contracts to enforce funding terms increases accountability, and less money is spent on middlemen. There is no chance of fraud, as every transaction is stored on all nodes on the network, making the data immutable. Additionally, the platform accepts all major cryptocurrencies, opening up new sources of capital for crowdfunding.