International Journal of Information Technology (IJIT) – Volume 7 Issue 4, July - Aug 2021

RESEARCH ARTICLE
• OPEN ACCESS

Transparent and Accountable Charity system using Block

Chain Technology
S Ghousia Farheen Taj [1], V.Mamatha [2]
Computer Science Department, VTU, Bengaluru

ABSTRACT
Blockchain is a promising technology and is becoming predominant for solving many problems in the field related to security
under the control of both public and private sectors. Blockchain is gaining popularity within the domain of charity. Due to lack
of transparency in the transactions involved in Donations the donor(s) are not able to know whether their donations are being
utilized properly, which has made people lose trust in Charities. The paper proposes a Blockchain based Decentralized Donation
tracking system built on Hyperledger Blockchain which will provide full transparency, accountability and direct reach to the
intended recipients. The current systems lack transparency in the field of Charity & Donations. In case of transactions
associated with Donations made to different Organization(s) there's no proper maintenance of records and because of
involvement of some corrupt peoples within the organization, has made people lose trust in this social cause. The donor is
unaware whether their funds are being utilized properly or not. Corruption is the other reason that leads the donor to lose trust in
charities.
Keywords — Blockchain, Decentralization, Chain Code, Hyper Ledger, Traceability, Consensus, Charity

I. INTRODUCTION • Consensus-based: All relevant network participants must

agree that a transaction is valid. This is achieved through the
Blockchain is the backbone Technology of Digital Crypto use of consensus algorithms.
Currency BitCoin. The blockchain is a distributed database of • Flexible: Smart Contracts which are executed based on
records of all transactions or digital event that have been certain conditions can be written into the platform. Blockchain
executed and shared among participating parties. Each Network can evolve in pace with business processes.
transaction verified by the majority of participants of the
system. It contains every single record of each transaction.
BitCoin isthe most popular cryptocurrency an example of the
blockchain. Blockchain Technology first came to light when a
person or Group of individuals name ‘Satoshi Nakamoto’
published a white paper on “BitCoin: A peer to peer electronic
cash system” in 2008. Blockchain Technology Records
Transaction in Digital Ledger which is distributed over the
Network thus making it incorruptible. Anything of value like
Land Assets, Cars, etc. can be recorded on Blockchain as a
Transaction.
Blockchain builts trust through the following five
attributes:
• Distributed: The distributed ledger is shared and updated
with every incoming transaction among the nodes connected
to the Blockchain. All this is done in real-time as there is no
central server controlling the data.
• Secure: There is no unauthorized access to Blockchain
made possible through Permissions and Cryptography.
• Transparent: Because every node or participant in
Blockchain has a copy of the Blockchain data, they have
access to all transaction data. They themselves can verify the Figure 1. Block Diagram
identities without the need for mediators. Blockchain Network can evolve in pace with business
processes. In a nutshell, here’s how blockchain allows
transactions to take place:

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 International Journal of Information Technology (IJIT) – Volume 7 Issue 4, July - Aug 2021

• A blockchain network makes use of public and private Reza Mauliadi et al. [5] presented a survey platform to
keys in order to form a digital signature ensuring security and generate the charities systems with ABS(Abstract Behavioral
consent. Specification) as a core architecture to support SPL(Software
Once the authentication is ensured through these keys, the Product Lines). They endeavour to develop an adaptive
need for authorization arises. Blockchain allows participants system for different charity organizations in a single
of the network to perform mathematical verification and reach development with Software Product Lines (SPL) as its
a consensus to agree on any particular value. approach to deal with the charities problems.
• While making a transfer, the sender uses their private key Rajesh Kannan Megalingam et al. [6] presented a survey
and announces the transaction information over the network. which the design of an intelligent donation box, capacitated to
A block is created containing information such as digital request for charity. This scheme is anticipated to be even more
signature, timestamp, and the receiver’s public key. effective than merely placing a donation box in a conspicuous
• This block of information is broadcasted through the location or a human directly asking for charity. This can be
network and the validation process starts. used to raise funds for the welfare of the needy.
• Miners all over the network start solving the
mathematical puzzle related to the transaction in order to III. SYSTEM ARCHITECTURE
process it. Solving this puzzle requires the miners to invest
their computing power.
• Upon solving the puzzle first, the miner receives rewards
in the form of bitcoins. Such kind of problems is referred to as
proof-of-work mathematical problems.
• Once the majority of nodes in the network come to a
consensus and agree to a common solution, the block is time
stamped and added to the existing blockchain. This block can
contain anything from money to data to messages.
• After the new block is added to the chain, the existing
copies of blockchain are updated for all the nodes on the
network.

II. LITERATURE SURVEY

Hadi Saleh et al. [1] shows a method is to offer transparent

accounting of operations donors, charitable foundations and
recipients based on blockchain technology, charitable
platform should provide transparent donation route, enable
public users and donors to track and monitor where, when and
to whom went resources of charity funds.
Aashutosh Singh et al. [2] proposed a propose a
Blockchain based Decentralized Donation tracking system
built on Ethereum Blockchain which willAn easy way to
Figure 2. Block Diagram of Charity System using Block
comply with the conference paper formatting requirements is
chain
to use this document as a template and simply type your text
into it provide full transparency, accountability and direct
The block diagram is represented in figure 1 .It shows that
reach to the intended recipients.
there are 3 different types of users like NGO, GOVT,
Dr.Chitra Kiran.N et al. [3] proposed an approach and
DONOR. First, NGO (Non- Government Organization) will
module by which one payee module can communicate with
register into the Block chain network by giving his details like
the payer module using Bluetooth for money transfer from the
Name, Contact No, Description of his Organization,
payer’s to the payee’s bank. The significance of this approach
Organization Name, Cause of Donation, Address. After
is that it eliminates the physical need of case cash and serves
submitting his details his account will be successfully created
for all types of payment and identity needs. The security of
in the Block chain network. Now, GOVT is the entity who
this module is intensified using biometric authentication.
acts like admin, he can approve the request or reject his
Iyolita Islam et al. [4] proposed a to propose a money
request based upon some unique and genuine identity. After
transfer system to automate and enhance the security of
approving only the NGO’s request will be visible to Donor.
payment process for SMEs(Small and Medium Enterprises) in
Donor should also register in the network if he is coming for
Bangladesh. The proposed system includes iris verification
the first time. After successful registration by providing
technique to authenticate a user uniquely and consistently over
details like Name, Address, Contact number, Account details,
the time.
etc. Donor can choose his own NGO and can transfer the

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 International Journal of Information Technology (IJIT) – Volume 7 Issue 4, July - Aug 2021

money. The transaction of money will be stored in the

distributed ledger of the Block chain where all the other users
are registered, Even GOVT entity can track the NGO’s actions
and the Donor’s actions.

IV. IMPLEMENTATION & METHODOLOGY

Hyperledger Fabric:
Hyperledger Fabric is a blockchain platform for distributed
ledger solutions underpinned by a modular architecture
delivering high degrees of confidentiality, resiliency,
flexibility, and scalability. It is designed to support pluggable
implementations of different components and accommodate
the complexity and intricacies that exists across the economic
ecosystem.
Figure 3. Block Diagram of Hyperledger Fabric
Components of Hyperledger Fabric Network:
1. Ledger : A ledger consists of two distinct, though The following are prerequisites for installing the
related, parts — a “blockchain” and the “state required development tools:
database”, also known as “world state”. Unlike other • Operating Systems: Ubuntu Linux 14.04 / 16.04 LTS
ledgers, blockchains are immutable — that is, once a (both 64-bit), or Mac OS 10.12
block has been added to the chain, it cannot be • Docker Engine: Version 17.03 or higher
changed. • Docker-Compose: Version 1.8 or higher
2. Membership Service Provider : The Membership • Node: 8.9 or higher (Note: version 9 is not supported)
Service Provider (MSP) refers to an abstract
• npm: v5.x
component of the system that provides credentials to
• git: 2.9.x or higher
clients, and peers for them to participate in a
Hyperledger Fabric network. • Python: 2.7.x
3. Smart Contract : A smart contract is code — • VSCode.
invoked by a client application external to the
blockchain network — that manages access and Steps of Starting Hyperledger Fabric
modifications to a set of key-value pairs in the World
State. 1. Open docker-compose-base.yaml file which is
4. Peers : A network entity that maintains a ledger and present in the bin folder and introduce following
runs chaincode containers in order to perform changes.
read/write operations to the ledger. Peers are owned Change orderer volume binding to -../composer-
and maintained by members. genesis.block:/var/hyperledger/orderer/orderer.genesis.block
5. Ordering Service : A defined collective of nodes
that orders transactions into a block. The ordering Change peer volume binding to (for all 4 peers)-
service exists independent of the peer processes and - ../:/etc/configtx
orders transactions on a first-come-first-serve basis
for all channel’s on the network. 2. To start fabric, run the following command –
6. Channel : A channel is a private blockchain overlay
which allows for data isolation and confidentiality. A docker-compose -f docker-compose-cli.yaml -f docker-
channel-specific ledger is shared across the peers in compose-couch.yaml up -d 2>&1
the channel, and transacting parties must be properly
authenticated to a channel in order to interact with it. 3. After completing all these steps , you can run command -
7. Certificate Authority : Hyperledger Fabric CA is
the default Certificate Authority component, which docker ps -a
issues PKI-based certificates to network member
organizations and their users. This will list all running containers regarding our network
8. Organizations : Also known as “members”, setup, in our case it will list 10 containers.
organizations are invited to join the blockchain
network by a blockchain service provider. An
organization is joined to a network by adding its
Membership Service Provider to the network.

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 International Journal of Information Technology (IJIT) – Volume 7 Issue 4, July - Aug 2021

Figure 6. Sign up page

Figure 4. Output of the above command in the terminal

Proposed network setup is complete, our network have -

• One orderer
• Two Organizations
• Four peers (two peers on each organization)
• Couchdb for all peers

4.Creating channel
5. Joining first peer where channel is created
6. Install chainCode on every machine
7. Start chaincode on one machine

In the Login module, there are 3 different users NGO,

Figure 6. Sign in page
Donor, GOVT. All 3 users have their own Sign up and sign
pages.
After Successful registration in the network, the user details
are stored in the Couchdb database. In which all the
information is stored in the Key value pair and in the
encrypted format.

Figure 5. Home page

Sign up and Sign in page will be present for each user.

Each user should be able to create his own account which Figure 7. Couchdb page
will be stored in the distributed ledger of the Block chain
network. They have to input certain fields like Name, Address,
Contact Number, Aadhar number, Account details,
Organization name, description of the organization etc.

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 International Journal of Information Technology (IJIT) – Volume 7 Issue 4, July - Aug 2021

V. CONCLUSIONS 8. “Achieving Privacy and Security using QR Code by

means of Encryption Technique in ATM “,Malathi V,
The focus of this paper is to compare the different methods Balamurugan B, © IEEE 2017
for donating or transferring the money from one person to 9. “Instant Secure Mobile Payment Scheme”, Mahmoud
another person. From the above comparisons we can conclude Obaid 1 , Zeki Bayram 1 , Murad Saleh, © IEEE 2018
that the Decentralized Donation Tracking System based on 10. ”SDD Sentinel: a Support Tool for Detecting and
Smart Contract on blockchain technology helps record the Investigating Electronic Transaction Frauds”, Gaetano Papale,
transactions of individual(s) making donations and gather Luigi Sgaglione, © IEEE 2017
information of where the donations are being spent. Smart 11. “Review On Fraud Detection Methods in Credit Card
contracts using blockchain implemented helps in controlling Transactions”, Krishna Modi, Reshma Dayma, © IEEE 2017
the transfer of tokens or digital currencies between the ends 12. ” Designing a Smart Mobile Application to Detect
parties involved in the transaction directly without the need to Fraud Theft of E-Banking Access Based on SOA In
depend on a trusted third party. Indonesia”, Meyliana , Ahmad Nurul Fajar, © IEEE 2019
13. ” Secure and Energy Efficient Mobile Payment
Protocol”, Abdul Razaque, Fathi Amsaad, © IEEE 2018
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