End Semester Project Progress Report

On
Submitted partial fulfillment for award of
BACHELOR OF TECHNOLOGY
Degree
In
COMPUTER SCIENCE & ENGINEERING

2024-25

Under the Guidance of: Submitted By:

Dr. Pawan Kumar Goel Muskan Tyagi(151)

Associate Professor Om Tiwari(161)
Pankaj Chauhan(162)
Pratham Gupta(170)

DEPARTMENT OF COMPUTER SCIENCE & ENGINEERING

RAJ KUMAR GOEL INSTITUTE OF TECHNOLOGY
5th K.M. STONE DELHI-MEERUT ROAD, GHAZIABAD

Affiliated to Dr. A.P.J. Abdul Kalam Technical University, Lucknow

i
 Department of Computer Science & Engineering

Project Progress Report

1. Course : Bachelor of Technology

2. Semester : VIIIth
3. Branch : Computer Science & Engineering
4. Project Title : Crowdfunding using Blockchain Technology

5. Details of Students:
S.
No. Roll No. Name Role as Signature
1 2100330100162 Pankaj Chauhan Team Leader, Coder
2 21003301001 Pratham Gupta Report
3 2100330100144 Muskan Tyagi Designer, Tester
4 2100330100161 Om Tiwari Designer, Tester

6. Supervisor :

(Dr. Pawan Kumar Goel)

Remarks from Project Supervisor:

………………………………………………………………………………

………………………………………………………………………………

………………………………………………………………………………

ii
 SYNOPSIS
Crowdfunding using blockchain technology leverages the decentralized, transparent, and immutable
nature of blockchain to enhance trust and efficiency in raising funds for projects. Traditional
crowdfunding platforms often face issues such as lack of transparency, high fees, and delays in fund
transfers. Blockchain-based crowdfunding addresses these challenges by using smart contracts to
automate the entire process, from collecting funds to distributing rewards and refunds. With
blockchain, funds are securely held in escrow by smart contracts, which only release them when
certain conditions (such as reaching the funding goal or achieving project milestones) are met. This
ensures greater accountability, reduces the potential for fraud, and eliminates intermediaries.
Additionally, blockchain-based platforms often use tokens or digital assets to represent contributions
and rewards, creating a more flexible and scalable ecosystem. This decentralized approach allows for
global participation, lower transaction costs, and increased transparency, making it an attractive
solution for both project creators and contributors.

Blockchain-based crowdfunding has revolutionized the way projects are funded by introducing
decentralization and transparency into the process. Unlike traditional crowdfunding platforms, which
rely on centralized intermediaries to facilitate transactions, blockchain-powered platforms eliminate
these intermediaries, enabling direct peer-to-peer (P2P) contributions. By utilizing smart contracts,
blockchain technology ensures that funds are automatically transferred only when specific conditions
are met, such as achieving the campaign’s funding goal or hitting predefined milestones. This reduces
the risk of fraud and mismanagement by ensuring that the terms of the agreement are executed in a
transparent, immutable, and verifiable way.

Additionally, blockchain introduces the possibility of fractional ownership or tokenization, where

contributors receive digital tokens or assets in return for their support, which can have tangible value
within the ecosystem or be traded. This enhances contributor engagement and incentivizes greater
participation, as users can potentially benefit from future project success. Moreover, blockchain’s
transparency enables all transactions to be publicly accessible, allowing contributors to track the
progress of the project in real-time, ensuring that funds are being utilized appropriately.

The global accessibility of blockchain also removes geographical barriers, enabling projects to raise
funds from anyone, anywhere in the world, while minimizing high transaction fees and delays often

iii
encountered with traditional financial systems. In case a project does not reach its goal by the
specified deadline, smart contracts can automatically refund the contributors, ensuring fairness and
reducing risks for all parties involved. This level of security, efficiency, and transparency makes
blockchain-based crowdfunding an increasingly popular solution for funding a variety of ventures,
from social causes to tech innovations.

Blockchain-based crowdfunding offers several transformative advantages over traditional platforms,

particularly in terms of security, trust, and the democratization of funding opportunities. One of the
key features of blockchain crowdfunding is the elimination of centralized authorities or
intermediaries, which not only reduces the cost of transactions but also minimizes the risk of data
manipulation or fraud. Traditional crowdfunding platforms typically charge high fees and have
gatekeepers who control which projects can access their platform. With blockchain, anyone with a
viable idea can create a crowdfunding campaign, and contributors can confidently invest knowing
their funds are secure and that the project owner is obligated to follow through with the terms defined
by the smart contract.

The smart contract technology built into blockchain platforms acts as a self-executing agreement
where the terms and conditions are predefined and automatically enforced once the conditions are
met. For example, if the fundraising goal is achieved within the campaign's time frame, the smart
contract will release the funds to the project owner. On the other hand, if the goal is not met, the
funds are returned to the contributors. This creates a more transparent, trustworthy environment
where all participants are clear on the rules, minimizing disputes and enhancing overall satisfaction.

Moreover, blockchain-based crowdfunding introduces the potential for decentralized autonomous

organizations (DAOs) to play a role in decision-making. In this model, the contributors could gain
governance rights through tokens, allowing them to vote on key decisions related to the project's
direction, such as the allocation of funds or project priorities. This creates a more collaborative and
community-driven approach, where contributors feel a sense of ownership and active involvement in
the success of the project, beyond simply providing financial backing.

iv
Blockchain also brings innovations in tokenization. Contributors may receive tokens that represent
ownership in the project or rewards based on their contribution. These tokens could hold value and
provide benefits beyond the project, such as being used in future endeavors or exchanged for other
cryptocurrencies or services. This new form of token-based reward systems has led to the rise of
Initial Coin Offerings (ICOs) and Security Token Offerings (STOs), where contributors receive
tokens as part of the campaign’s success, creating a whole new financial ecosystem within
crowdfunding.

Another critical advantage of blockchain in crowdfunding is global accessibility. Traditional

crowdfunding platforms may face geographical restrictions due to local financial regulations or
payment gateway limitations, making it challenging for international supporters to contribute.
Blockchain, however, operates on a global scale, where anyone with an internet connection can
participate. Cryptocurrencies like Bitcoin or Ethereum can be used as a universal medium of
exchange, providing an inclusive solution for cross-border funding with minimal transaction fees
compared to conventional banking systems.

The transparency offered by blockchain is particularly appealing for charitable or socially-oriented

projects. Contributors can track the progress of a project, view how funds are being spent, and ensure
that their contributions are being used effectively. This transparency can lead to increased trust in
crowdfunding campaigns, particularly in sectors like social good, healthcare, or disaster relief, where
donors often have concerns about the allocation of funds.

Crowdfunding using blockchain technology is an innovative approach that leverages the

decentralized nature of blockchain to raise funds for projects, startups, or initiatives. Traditional
crowdfunding platforms involve intermediaries, such as banks or payment processors, to facilitate
transactions. In contrast, blockchain-based crowdfunding eliminates the need for intermediaries by
using smart contracts and cryptocurrency, offering several benefits.

Blockchain-based crowdfunding is poised to transform the way projects are financed by increasing
transparency, trust, and global participation, but it still faces regulatory and technical hurdles. As the
ecosystem continues to evolve, it may eventually challenge traditional fundraising methods in
numerous industries.

v
 TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO.

SYNOPSIS iii
LIST OF TABLES vii
LIST OF FIGURES viii

1. INTRODUCTION
1
1.1 OBJECTIVE 1
1.2 MOTIVATION 3
1.3 PROBLEM STATEMENT 4
1.4 BACKGROUND AND RELATED WORK 5

2. HARDWARE AND SOFTWARE REQUIREMENTS

2.1 HARDWARE REQUIREMENT 5
2.2 SOFTWARE REQUIREMENT 5
2.3 TESTING TECHNOLOGY 5

3 SPECIFICATION AND ANALYSIS

3.1 PROJECT MODULE DESIGN
3.2 APPLICATION ARCHITECTURE
3.3 WIREFRAME
3.4 DATABASE TABLES

4 SOFTWARE REQUIREMENT SPECIFICATION

4.1 FUNCTIONAL REQUIREMENTS
4.2 INTERFACE REQUIREMENTS
4.3 PERFORMANCE REQUIEMENTS
4.4 DESIGN REQUIREMENTS

vi
 4.5 NON-FUNCTIONAL REQUIREMENTS
5 SOFTWARE FEATURES
5.1 ALGORITHMS AND DATASET USED
5.2 WORKFLOW SUMMARY IN CODE

6 PROJECT SNAPSHOT

7 REFERENCES

LIST OF TABLES

TABLE NO. TITLE PAGE NO.

4.1 Software and Hardware Requirements 27

4.2 Use Case Description 28

5.1 Testing Tables 37

vii
 LIST OF FIGURES

CHAPTER NO. TITLE PAGE NO.

1 FIGURE. 1.1 Blockchain Structure 4

2 FIGURE. 2.1 Ethereum Logo 9
4 FIGURE. 4.1 Use Case Diagram 28
4 FIGURE. 4.2 Activity Diagram 29
4 FIGURE. 4.3 Sequence Diagram 30
4 FIGURE. 4.4 Class Diagram 31
4 FIGURE. 4.5 Deployment Diagram 32
4 FIGURE. 4.6 Metamask 33
4 FIGURE. 4.7 Ganche 34
4 FIGURE. 4.8 Crowdfunding Smart Contract Code 35
4 FIGURE. 4.9 Crowdfunding WebPage 36

viii
 CHAPTER 1

INTRODUCTION

Crowdfunding has become a popular method for raising capital, allowing individuals
and organizations to secure funds for their projects from a large pool of backers,
typically through online platforms. However, traditional crowdfunding platforms face
several challenges, such as high fees, lack of transparency, and the reliance on
centralized intermediaries that can hinder the efficiency and trustworthiness of the
funding process. Blockchain technology, with its decentralized, transparent, and
secure features, offers a promising solution to these challenges. By utilizing smart
contracts and a distributed ledger system, blockchain enables the creation of trustless,
automated crowdfunding platforms that do not require intermediaries. These platforms
can ensure that funds are securely held and released based on predefined conditions,
providing greater transparency, security, and accountability. Additionally, blockchain
allows for global participation, reduces transaction fees, and introduces new models of
governance through tokenization. This innovation has the potential to revolutionize
the crowdfunding space, creating a more efficient, accessible, and equitable platform
for raising capital across various sectors, from social causes to technological
innovations.
Blockchain-based crowdfunding leverages the power of decentralized networks to
address many of the limitations inherent in traditional crowdfunding models.
Traditional platforms often rely on central authorities, such as banks or payment
processors, to facilitate transactions, resulting in higher fees, longer processing times,
and potential delays in fund allocation. Additionally, there is a lack of transparency in
how funds are handled, which can lead to a loss of trust between project creators and
backers. Blockchain technology eliminates these concerns by providing a transparent,
tamper-proof ledger where all transactions are recorded and accessible to participants.
With blockchain, contributors can see exactly how their funds are being spent and can
verify that funds are released only when project milestones are met, ensuring that
funds are used appropriately and in line with the campaign’s goals.

1
 1.1 OBJECTIVE
Crowdfunding using blockchain technology aims to revolutionize traditional
fundraising by addressing key challenges and unlocking new opportunities. By
leveraging blockchain's transparent and immutable ledger, it ensures that all
transactions and funding activities are visible and tamper-proof, fostering trust among
contributors.

1. Transparency and Trust

 Objective: Build trust among contributors by providing a transparent system.

 How Blockchain Helps: Blockchain's immutable ledger ensures that all transactions
and funding activities are recorded and visible to all participants.

2. Elimination of Intermediaries

 Objective: Reduce costs and increase efficiency by removing traditional middlemen

like banks or payment processors.
 How Blockchain Helps: Smart contracts automate processes like fund disbursement
and milestone tracking without needing intermediaries.

3. Global Accessibility

 Objective: Enable individuals worldwide to participate in crowdfunding campaigns,

regardless of geographic or economic barriers.
 How Blockchain Helps: Cryptocurrencies facilitate borderless transactions and allow
participation without traditional banking infrastructure.

4. Enhanced Security

 Objective: Protect funds and user data from fraud and cyberattacks.
 How Blockchain Helps: Cryptographic security features ensure that funds and data
are secure and only accessible to authorized parties.

5. Lower Transaction Costs

 Objective: Reduce fees associated with traditional crowdfunding platforms.

2
  How Blockchain Helps: Direct peer-to-peer transactions and the elimination of
intermediaries lead to significantly lower fees.

6. Tokenization and Reward Mechanisms

 Objective: Provide backers with innovative incentives, such as tokenized rewards or

equity.
 How Blockchain Helps: Issuing tokens on the blockchain allows contributors to
receive digital assets that represent ownership, future utility, or access to services.

7. Real-time Fund Management

 Objective: Allow backers and project owners to monitor fund usage and milestones in
real-time.
 How Blockchain Helps: Smart contracts can release funds based on predefined
conditions, ensuring responsible fund allocation.

8. Decentralized Decision-Making

 Objective: Enable contributors to have a say in the project's direction or governance.

 How Blockchain Helps: Decentralized autonomous organizations (DAOs) can
empower stakeholders through voting and consensus mechanisms.

9. Accessibility to Underserved Markets

 Objective: Provide funding opportunities to entrepreneurs and projects that may not
qualify for traditional funding.
 How Blockchain Helps: The decentralized nature of blockchain opens up funding
avenues for innovative ideas that might be overlooked by conventional platforms.

10. Immutable Record of Contributions

 Objective: Ensure a verifiable and permanent record of all contributions and funding
activities.
 How Blockchain Helps: Blockchain's tamper-proof ledger guarantees that all
transaction histories are secure and auditable.

Another significant advantage is the ability to tokenize rewards, allowing project

creators to offer contributors digital assets that represent ownership, utility, or access to
3
 services. This innovative model not only incentivizes backers but also introduces new
possibilities for project funding and governance through decentralized mechanisms
like DAOs.

1.2 MOTIVATION

The motivation behind crowdfunding using blockchain technology lies in its

ability to address the limitations of traditional crowdfunding while unlocking
new opportunities for innovation and inclusion. Traditional platforms often face
challenges such as high transaction fees, lack of transparency, and limited global
accessibility. Blockchain technology, with its decentralized and transparent
nature, provides a solution by enabling peer-to-peer transactions, reducing costs,
and ensuring that all funding activities are verifiable and tamper-proof. This
fosters trust among contributors, a critical factor in any crowdfunding initiative.
Additionally, blockchain allows for the automation of processes through smart
contracts, which ensures that funds are released only when predefined conditions
are met, further enhancing accountability and efficiency.

Another key motivator is the ability to offer tokenized incentives, allowing

contributors to receive digital assets that can represent ownership, utility, or
exclusive access, creating more engaging and rewarding participation.
Blockchain also democratizes fundraising by providing a platform for global
participation, enabling underserved markets and entrepreneurs to access funding
opportunities that might be unavailable through conventional means. By
combining transparency, security, and inclusivity, blockchain-based
crowdfunding aligns with the evolving needs of the digital economy, inspiring a
new era of trust-driven and efficient fundraising.

The motivation for adopting blockchain in crowdfunding is deeply rooted in its

transformative potential to overcome systemic inefficiencies and create a more
equitable fundraising ecosystem. Traditional crowdfunding platforms often
operate under centralized structures, leading to high operational fees, limited
trust, and a lack of transparency in fund allocation. These shortcomings can
discourage potential contributors and hinder the success of many innovative
4
 projects. Blockchain technology addresses these issues by providing a
decentralized, trustless framework where every transaction is recorded on an
immutable ledger. This transparency ensures that contributors can track how
funds are being utilized, building confidence in the system.

Moreover, blockchain democratizes access to fundraising by removing geographical and

economic barriers. Through the use of cryptocurrencies, individuals from around the world
can contribute to campaigns without relying on traditional banking systems, making
participation more inclusive. The automation capabilities of smart contracts also serve as a
major motivator, as they enable pre-programmed, conditional fund releases tied to milestones
or specific outcomes. This reduces the risk of mismanagement or fraud, which are common
concerns in traditional models.

1.3 PROBLEM STATEMENT

Traditional crowdfunding methods face significant limitations that hinder their

effectiveness and inclusivity. These platforms are often centralized, leading to
high fees, limited transparency, and restricted access for global participants.
Contributors frequently encounter a lack of trust due to insufficient
accountability in fund allocation and project execution. Furthermore, many
innovative or high-risk projects struggle to secure funding through conventional
means, as they are often excluded by traditional financial systems or fail to meet
the criteria of centralized crowdfunding platforms.
Blockchain technology has emerged as a potential solution, but its adoption in
crowdfunding is not without challenges. While blockchain offers transparency,
security, and decentralization, issues such as scalability, regulatory compliance,
user education, and integration with existing systems remain barriers to
widespread implementation. Additionally, many potential contributors are
unfamiliar with cryptocurrency and blockchain technology, which can limit
participation. Ensuring that blockchain-based crowdfunding systems are user-
friendly, cost-effective, and compliant with global financial regulations is critical
to addressing these challenges and realizing their full potential.

5
 1.4 BACKGROUND AND RELATED WORK

Title/Author Description Key Findings

Benedetti and Sorrentino Analysis of limitations in Blockchain enables

(2018) traditional crowdfunding decentralized platforms
and the potential of with greater transparency,
blockchain for transparency trust, and security.
and trust.

Catalini and Gans (2016) Exploration of how smart Smart contracts ensure
contracts can automate automated funding,
crowdfunding and reduce milestone tracking, and
intermediary reliance. lower transaction costs.

Hassan and Gohar (2019) Examination of DAOs in DAOs allow token holders
crowdfunding and how to vote on key project
token-based governance decisions, fostering
can democratize the decentralized governance.
process.

Zohar and Melikhov (2017) Study of tokenization and Tokenization can offer
how tokenized rewards can contributors digital assets
add value to crowdfunding. or equity in the project,
creating new incentives.

Li et al. (2020) Case study on KickICO, a KickICO raises funds

blockchain-based quickly with transparent
crowdfunding platform processes, using Ethereum
using Ethereum smart smart contracts to handle
contracts. campaign execution.

Böhme et al. (2018) Investigation of AI and AI and blockchain together

blockchain integration for can optimize contributor-
optimizing crowdfunding project matching, assess
processes. project viability, and predict
outcomes.

6
 CHAPTER 2

HARDWARE AND SOFTWARE REQUIREMENTS

2.1 HARDWARE REQUIREMENTS

Web Servers: To host the platform and manage user traffic

Database Servers: For storing user data, project information, and transactions.
Security Appliances: Firewalls and intrusion detection systems to safeguard user data
Networking Equipment: Routers and switches for reliable internet connectivity.

2.2 SOFTWARE REQUIREMENTS

Web Development : Tools like Ruby on Rails, Django, or Node.js for building the
platform's front-end and back-end.
Database Management Systems: Solutions like MySQL or PostgreSQL for
managing user data and transactions
Payment Processing Software: Integration with payment gateways (e.g., Stripe,
PayPal) to handle transactions
Security Software: SSL certificates and other security measures to protect user
data and transactions

2.3 TESTING TECHNOLOGY

UNIT TESTING:
INTEGRATION TESTING:

7
 CHAPTER 3

Requirement Specification and Analysis

A blockchain-based crowdfunding system requires careful planning and execution,
ensuring functionality, user-friendliness, security, and compliance. Addressing
scalability and regulatory challenges is crucial to creating a platform that leverages
blockchain's full potential while meeting the needs of project creators and
contributors.

1. Functional Requirements

1.1 User Registration and Authentication

 Requirement: The platform must allow users to register and authenticate securely.
 Analysis: Use blockchain-based decentralized identity (DID) systems or traditional
authentication methods integrated with blockchain wallets.

1.2 Campaign Creation

 Requirement: Project creators must be able to create campaigns, set funding goals,
and define milestones.
 Analysis: Smart contracts should enforce these campaign parameters and validate
milestone achievements.

1.3 Contribution Management

 Requirement: Contributors should be able to fund campaigns using cryptocurrencies

or fiat currencies (via integration).
 Analysis: A cryptocurrency payment gateway must be integrated, supporting popular
tokens like Bitcoin, Ethereum, or stablecoins.

1.4 Fund Release Mechanism

 Requirement: Funds should be disbursed conditionally, based on predefined

milestones.
 Analysis: Smart contracts will handle fund releases upon achieving milestone
approvals by contributors or external validators.

8
1.5 Reward and Token Distribution

 Requirement: Contributors may receive rewards, equity, or tokens in exchange for

funding.
 Analysis: The system must support token issuance on a blockchain, ensuring
compliance with relevant token standards (e.g., ERC-20, BEP-20).

1.6 Transparency and Auditing

 Requirement: All transactions and campaign details must be transparent and

auditable.
 Analysis: Blockchain’s public ledger will maintain transaction and campaign data for
real-time monitoring.

1.7 Governance Mechanisms

 Requirement: Contributors should have voting rights in project decisions.

 Analysis: Implement decentralized governance models using token-weighted voting
systems.

1.8 Security Features

 Requirement: The platform must safeguard against fraud, hacking, and unauthorized
access.
 Analysis: Implement cryptographic security, multi-signature wallets, and regular
smart contract audits.

2. Non-Functional Requirements

2.1 Scalability

 Requirement: The system must handle high volumes of users and transactions.
 Analysis: Use scalable blockchain networks (e.g., Ethereum Layer 2, Polygon, or
Solana) to minimize latency and costs.

9
2.2 Usability

 Requirement: The platform must have a user-friendly interface to attract non-

technical users.
 Analysis: Provide intuitive dashboards, guides for wallet usage, and support for
multiple languages.

2.3 Compliance

 Requirement: The platform must comply with global financial regulations, including
KYC/AML.
 Analysis: Integrate KYC/AML solutions for user onboarding while adhering to
relevant token and fundraising regulations.

2.4 Interoperability

 Requirement: The platform should interact with multiple blockchain networks and
external systems.
 Analysis: Use cross-chain bridges and APIs for integration with third-party services.

2.5 Cost-Effectiveness

 Requirement: Minimize transaction and operational costs.

 Analysis: Leverage energy-efficient consensus mechanisms (e.g., Proof-of-Stake) and
optimize smart contract operations.

3. System Analysis

3.1 Technical Feasibility

 Blockchain provides transparency, security, and decentralization but requires a robust

infrastructure to ensure scalability and reliability.
 Smart contracts and tokenization need thorough development and testing to avoid
vulnerabilities.

10
3.2 Operational Feasibility

 Educating users about blockchain and cryptocurrency will be crucial to encourage

adoption.
 Partnerships with crypto exchanges and financial institutions can streamline fiat-crypto
integration.

3.3 Risk Analysis

 Regulatory Risks: Changing global laws may impact operations; ensure adaptability
and compliance.
 Security Risks: Potential vulnerabilities in smart contracts or wallets require rigorous
testing and continuous updates.

3.4 Economic Feasibility

 Initial development costs may be high, but reduced operational costs in the long run
make the system cost-effective.
 Revenue models can include transaction fees, premium campaign features, or
tokenomics.

3.1 PROJECT MODULES DESIGN

Crowdfunding using blockchain technology leverages decentralized systems to achieve

several key objectives. Here are the primary objectives:

1. Transparency and Trust

 Objective: Build trust among contributors by providing a transparent system.

 How Blockchain Helps: Blockchain's immutable ledger ensures that all transactions
and funding activities are recorded and visible to all participants.

2. Elimination of Intermediaries

 Objective: Reduce costs and increase efficiency by removing traditional middlemen

like banks or payment processors.
11
  How Blockchain Helps: Smart contracts automate processes like fund disbursement
and milestone tracking without needing intermediaries.

3. Global Accessibility

 Objective: Enable individuals worldwide to participate in crowdfunding campaigns,

regardless of geographic or economic barriers.
 How Blockchain Helps: Cryptocurrencies facilitate borderless transactions and allow
participation without traditional banking infrastructure.

4. Enhanced Security

 Objective: Protect funds and user data from fraud and cyberattacks.
 How Blockchain Helps: Cryptographic security features ensure that funds and data
are secure and only accessible to authorized parties.

5. Lower Transaction Costs

 Objective: Reduce fees associated with traditional crowdfunding platforms.

 How Blockchain Helps: Direct peer-to-peer transactions and the elimination of
intermediaries lead to significantly lower fees.

6. Tokenization and Reward Mechanisms

 Objective: Provide backers with innovative incentives, such as tokenized rewards or

equity.
 How Blockchain Helps: Issuing tokens on the blockchain allows contributors to
receive digital assets that represent ownership, future utility, or access to services.

7. Real-time Fund Management

 Objective: Allow backers and project owners to monitor fund usage and milestones in
real-time.
 How Blockchain Helps: Smart contracts can release funds based on predefined
conditions, ensuring responsible fund allocation.

12
8. Decentralized Decision-Making

 Objective: Enable contributors to have a say in the project's direction or governance.

 How Blockchain Helps: Decentralized autonomous organizations (DAOs) can
empower stakeholders through voting and consensus mechanisms.

9. Accessibility to Underserved Markets

 Objective: Provide funding opportunities to entrepreneurs and projects that may not
qualify for traditional funding.
 How Blockchain Helps: The decentralized nature of blockchain opens up funding
avenues for innovative ideas that might be overlooked by conventional platforms.

10. Immutable Record of Contributions

 Objective: Ensure a verifiable and permanent record of all contributions and funding
activities.
 How Blockchain Helps: Blockchain's tamper-proof ledger guarantees that all
transaction histories are secure and auditable.

By achieving these objectives, blockchain-based crowdfunding enhances the efficiency,

fairness, and reach of traditional fundraising models.

Crowdfunding using blockchain technology aims to revolutionize traditional fundraising by

addressing key challenges and unlocking new opportunities. By leveraging blockchain's
transparent and immutable ledger, it ensures that all transactions and funding activities are
visible and tamper-proof, fostering trust among contributors. The elimination of
intermediaries such as banks or payment processors significantly reduces costs and enhances
efficiency, while smart contracts automate processes like fund disbursement and milestone
tracking. This decentralized approach enables global participation, making it easier for
individuals across the world to support projects without being restricted by geographic or
economic barriers. Furthermore, blockchain's security features protect funds and user data
from fraud, offering contributors a secure platform to engage with.

Another significant advantage is the ability to tokenize rewards, allowing project creators to
offer contributors digital assets that represent ownership, utility, or access to services. This

13
innovative model not only incentivizes backers but also introduces new possibilities for
project funding and governance through decentralized mechanisms like DAOs. Additionally,
blockchain opens up opportunities for underserved markets and entrepreneurs who might
struggle to access traditional funding, providing an inclusive platform for innovation. By
combining transparency, efficiency, and security, blockchain-based crowdfunding has the
potential to redefine the way projects are funded and executed.

The motivation behind crowdfunding using blockchain technology lies in its ability to address
the limitations of traditional crowdfunding while unlocking new opportunities for innovation
and inclusion. Traditional platforms often face challenges such as high transaction fees, lack
of transparency, and limited global accessibility. Blockchain technology, with its
decentralized and transparent nature, provides a solution by enabling peer-to-peer transactions,
reducing costs, and ensuring that all funding activities are verifiable and tamper-proof. This
fosters trust among contributors, a critical factor in any crowdfunding initiative. Additionally,
blockchain allows for the automation of processes through smart contracts, which ensures that
funds are released only when predefined conditions are met, further enhancing accountability
and efficiency.

Another key motivator is the ability to offer tokenized incentives, allowing contributors to
receive digital assets that can represent ownership, utility, or exclusive access, creating more
engaging and rewarding participation. Blockchain also democratizes fundraising by providing
a platform for global participation, enabling underserved markets and entrepreneurs to access
funding opportunities that might be unavailable through conventional means. By combining
transparency, security, and inclusivity, blockchain-based crowdfunding aligns with the
evolving needs of the digital economy, inspiring a new era of trust-driven and efficient
fundraising.

The motivation for adopting blockchain in crowdfunding is deeply rooted in its transformative
potential to overcome systemic inefficiencies and create a more equitable fundraising
ecosystem. Traditional crowdfunding platforms often operate under centralized structures,
leading to high operational fees, limited trust, and a lack of transparency in fund allocation.
These shortcomings can discourage potential contributors and hinder the success of many
innovative projects. Blockchain technology addresses these issues by providing a
decentralized, trustless framework where every transaction is recorded on an immutable

14
ledger. This transparency ensures that contributors can track how funds are being utilized,
building confidence in the system.

Moreover, blockchain democratizes access to fundraising by removing geographical and

economic barriers. Through the use of cryptocurrencies, individuals from around the world
can contribute to campaigns without relying on traditional banking systems, making
participation more inclusive. The automation capabilities of smart contracts also serve as a
major motivator, as they enable pre-programmed, conditional fund releases tied to milestones
or specific outcomes. This reduces the risk of mismanagement or fraud, which are common
concerns in traditional models.

The ability to tokenize contributions is another compelling aspect of blockchain

crowdfunding. By issuing digital tokens, project creators can offer contributors unique
incentives, such as profit-sharing rights, governance participation, or access to exclusive
services. This creates a dynamic ecosystem where contributors feel more engaged and
rewarded. Additionally, blockchain fosters innovation by enabling fundraising for
unconventional or high-risk projects that might not attract traditional investors. These
motivations highlight how blockchain can revolutionize crowdfunding by combining security,
inclusivity, and efficiency, ultimately empowering creators and contributors alike in the digital
economy.

PROBLEM STATEMENT

Traditional crowdfunding methods face significant limitations that hinder their effectiveness
and inclusivity. These platforms are often centralized, leading to high fees, limited
transparency, and restricted access for global participants. Contributors frequently encounter a
lack of trust due to insufficient accountability in fund allocation and project execution.
Furthermore, many innovative or high-risk projects struggle to secure funding through
conventional means, as they are often excluded by traditional financial systems or fail to meet
the criteria of centralized crowdfunding platforms.

Blockchain technology has emerged as a potential solution, but its adoption in crowdfunding
is not without challenges. While blockchain offers transparency, security, and
decentralization, issues such as scalability, regulatory compliance, user education, and
integration with existing systems remain barriers to widespread implementation. Additionally,

15
many potential contributors are unfamiliar with cryptocurrency and blockchain technology,
which can limit participation. Ensuring that blockchain-based crowdfunding systems are user-
friendly, cost-effective, and compliant with global financial regulations is critical to
addressing these challenges and realizing their full potential.

This problem statement highlights the dual challenge of addressing the inefficiencies of
traditional crowdfunding while overcoming the barriers to implementing blockchain-based
solutions .

Requirement Specification and Analysis for Crowdfunding Using Blockchain

Method

To design and implement a blockchain-based crowdfunding system, it is essential to define the

functional and non-functional requirements while analyzing technical and operational needs.
Below is a comprehensive specification and analysis:

1. Functional Requirements

1.1 User Registration and Authentication

 Requirement: The platform must allow users to register and authenticate securely.
 Analysis: Use blockchain-based decentralized identity (DID) systems or traditional
authentication methods integrated with blockchain wallets.

1.2 Campaign Creation

 Requirement: Project creators must be able to create campaigns, set funding goals,
and define milestones.
 Analysis: Smart contracts should enforce these campaign parameters and validate
milestone achievements.

1.3 Contribution Management

 Requirement: Contributors should be able to fund campaigns using cryptocurrencies

or fiat currencies (via integration).
 Analysis: A cryptocurrency payment gateway must be integrated, supporting popular
tokens like Bitcoin, Ethereum, or stablecoins.
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1.4 Fund Release Mechanism

 Requirement: Funds should be disbursed conditionally, based on predefined

milestones.
 Analysis: Smart contracts will handle fund releases upon achieving milestone
approvals by contributors or external validators.

1.5 Reward and Token Distribution

 Requirement: Contributors may receive rewards, equity, or tokens in exchange for

funding.
 Analysis: The system must support token issuance on a blockchain, ensuring
compliance with relevant token standards (e.g., ERC-20, BEP-20).

1.6 Transparency and Auditing

 Requirement: All transactions and campaign details must be transparent and

auditable.
 Analysis: Blockchain’s public ledger will maintain transaction and campaign data for
real-time monitoring.

1.7 Governance Mechanisms

 Requirement: Contributors should have voting rights in project decisions.

 Analysis: Implement decentralized governance models using token-weighted voting
systems.

1.8 Security Features

 Requirement: The platform must safeguard against fraud, hacking, and unauthorized
access.
 Analysis: Implement cryptographic security, multi-signature wallets, and regular
smart contract audits.

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2. Non-Functional Requirements

2.1 Scalability

 Requirement: The system must handle high volumes of users and transactions.
 Analysis: Use scalable blockchain networks (e.g., Ethereum Layer 2, Polygon, or
Solana) to minimize latency and costs.

2.2 Usability

 Requirement: The platform must have a user-friendly interface to attract non-

technical users.
 Analysis: Provide intuitive dashboards, guides for wallet usage, and support for
multiple languages.

2.3 Compliance

 Requirement: The platform must comply with global financial regulations, including
KYC/AML.
 Analysis: Integrate KYC/AML solutions for user onboarding while adhering to
relevant token and fundraising regulations.

2.4 Interoperability

 Requirement: The platform should interact with multiple blockchain networks and
external systems.
 Analysis: Use cross-chain bridges and APIs for integration with third-party services.

2.5 Cost-Effectiveness

 Requirement: Minimize transaction and operational costs.

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  Analysis: Leverage energy-efficient consensus mechanisms (e.g., Proof-of-Stake) and
optimize smart contract operations.

3. System Analysis

3.1 Technical Feasibility

 Blockchain provides transparency, security, and decentralization but requires a robust

infrastructure to ensure scalability and reliability.
 Smart contracts and tokenization need thorough development and testing to avoid
vulnerabilities.

3.2 Operational Feasibility

 Educating users about blockchain and cryptocurrency will be crucial to encourage

adoption.
 Partnerships with crypto exchanges and financial institutions can streamline fiat-crypto
integration.

3.3 Risk Analysis

 Regulatory Risks: Changing global laws may impact operations; ensure adaptability
and compliance.
 Security Risks: Potential vulnerabilities in smart contracts or wallets require rigorous
testing and continuous updates.

3.4 Economic Feasibility

 Initial development costs may be high, but reduced operational costs in the long run
make the system cost-effective.
 Revenue models can include transaction fees, premium campaign features, or
tokenomics.

19
Conclusion

A blockchain-based crowdfunding system requires careful planning and execution, ensuring

functionality, user-friendliness, security, and compliance. Addressing scalability and
regulatory challenges is crucial to creating a platform that leverages blockchain's full potential
while meeting the needs of project creators and contribution.

3.1 PROJECT MODULES

A blockchain-based crowdfunding platform can be modularly designed to ensure scalability,

maintainability, and functionality. Below is the modular design framework:

1. User Management Module

Purpose

Handles user registration, authentication, and role management.

Components

 User Registration: Allows users to register using blockchain wallets or traditional

methods integrated with KYC/AML verification.
 Authentication: Secure login with multi-factor authentication or wallet signature.
 Role Management: Assign roles (e.g., contributor, creator, admin).

2. Campaign Management Module

Purpose

Enables project creators to set up and manage crowdfunding campaigns.

Components

 Campaign Creation: Define campaign details like title, description, funding goal,
milestones, and duration.
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  Campaign Updates: Allow creators to update project progress or milestone
completions.
 Campaign Validation: Ensure campaigns meet platform guidelines before publishing.

3. Contribution Management Module

Purpose

Manages contributions from users and ensures secure transactions.

Components

 Payment Gateway Integration: Accept cryptocurrency and fiat contributions.

 Transaction Recording: Record contributions on the blockchain for transparency.
 Refund Mechanism: Allow contributors to withdraw funds if campaign milestones
are unmet or the campaign fails.

4. Smart Contract Management Module

Purpose

Automates campaign and fund management using blockchain smart contracts.

Components

 Campaign Contract: Manage fund allocation, milestone conditions, and contributor

interactions.
 Fund Release Contract: Disburse funds upon milestone approval.
 Governance Contract: Enable voting mechanisms for contributors to approve or
reject milestones.

Payment and Wallet Integration Module

 Description: This module enables the handling of cryptocurrencies (e.g., Ethereum,

Bitcoin) and integrates with the blockchain to handle fund transfers and token
issuance.

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  Functionality:
o Cryptocurrency Payments: Allows backers to contribute funds using
cryptocurrencies.
o Token Issuance: Upon successful funding, tokens or digital assets are issued
to contributors as part of their reward, representing ownership, voting rights, or
value.
o Wallet Management: Users can link their digital wallets (e.g., MetaMask) to
the platform to send/receive payments and track their contributions.
o Transaction Tracking: Provides a transparent record of all transactions,
showing contributors when funds were received or distributed.

5. Governance and Voting Module

 Description: This module enables decentralized decision-making within the

crowdfunding platform, especially for projects that use a Decentralized Autonomous
Organization (DAO) approach.
 Functionality:
o Token-Based Voting: Contributors are issued governance tokens that allow
them to vote on important project decisions, such as funding allocation,
milestones, or adjustments to the campaign.
o Proposal Creation: Project creators or contributors can create proposals,
which are then voted on by other token holders.
o Voting Mechanism: Ensures that votes are securely executed and tallied on the
blockchain, guaranteeing transparency and accountability in the decision-
making process.

6. Campaign Analytics and Reporting Module

 Description: This module provides analytics tools to track the performance of

crowdfunding campaigns and generate reports for both project creators and
contributors.
 Functionality:
o Campaign Metrics: Displays real-time data on the number of backers, total
funds raised, funding progress, and milestones achieved.

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 o Contributor Dashboard: Contributors can view their funding history, track
the progress of supported campaigns, and monitor the allocation of funds.
o Project Creator Insights: Provides detailed insights to project creators,
helping them understand contributor engagement, optimize marketing
strategies, and assess campaign success.
o Transparency Reports: Generates reports detailing fund usage, token
distribution, and campaign finances, ensuring full transparency with all
participants.

3.2 APPLICATION ARCHITECTURE

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The application architecture of a blockchain-based crowdfunding platform can be designed
with a layered structure to ensure modularity, scalability, and security. Below is the detailed
architecture:

The application architecture for a blockchain-based crowdfunding platform is designed to

ensure seamless interaction between users and the blockchain while providing a secure,
transparent, and efficient environment. At its core, the architecture is divided into four layers:
the presentation layer, the application layer, the blockchain layer, and the data layer. The
presentation layer serves as the user interface, offering web and mobile applications where
project creators and contributors can interact with the system, manage campaigns, and track
funds. The application layer contains the business logic, managing user authentication,
campaign creation, payment processing, and communication with the blockchain.

1. Layered Architecture

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1.1 Presentation Layer

 Purpose: Handles user interaction and displays platform data.

 Components:
o Web Interface: A responsive web application for managing campaigns and
contributions.
o Mobile Interface: A mobile app for accessing platform features on the go.
o Wallet Integration: Support for crypto wallets like MetaMask, Trust Wallet,
or others.
o Dashboard: Provides users with real-time insights into campaigns,
contributions, and rewards.
 Technologies: React, Angular, or Vue.js for frontend development.

1.2 Application Layer

 Purpose: Implements the platform's business logic.

 Components:
o Campaign Management: Logic for creating, updating, and monitoring
campaigns.
o Contribution Processing: Handles fund transfers, token distribution, and
refunds.
o Reward Mechanism: Manages tokenized rewards or other incentives.
o Voting and Governance: Implements contributor decision-making processes.
 Technologies: Node.js, Python (Flask/Django), or Ruby on Rails for backend services.

1.3 Blockchain Layer

 Purpose: Facilitates secure, transparent, and decentralized operations.

 Components:
o Smart Contracts: Manage campaign creation, fund release, token issuance,
and voting.

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 o Blockchain Network: Underlying blockchain, such as Ethereum, Binance
Smart Chain, or Solana.
o Token Standards: ERC-20, ERC-721, or other blockchain token standards for
rewards.
 Technologies: Solidity (for Ethereum), Rust (for Solana), or Vyper.

1.5 Middleware Layer

 Purpose: Acts as a bridge between the blockchain and other platform components.
 Components:
o Blockchain APIs: Interact with the blockchain network (e.g., Web3.js,
ethers.js).
o Oracles: Fetch off-chain data to trigger smart contract conditions (e.g.,
Chainlink).
o Cross-Chain Bridges: Enable interoperability with multiple blockchain
networks.
 Technologies: Web3.js, Chainlink, Polkadot.

1.5 Data Layer

 Purpose: Manages on-chain and off-chain data storage.

 Components:
o Blockchain Ledger: Stores immutable transaction and campaign data.
o Off-Chain Storage: Saves large files like campaign media using decentralized
storage (e.g., IPFS).
o Database: Manages user profiles, campaign metadata, and analytics (e.g.,
PostgreSQL, MongoDB).
 Technologies: IPFS, PostgreSQL, or NoSQL databases.

3.3 WIREFRAME
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Here is the wireframe for a blockchain-based crowdfunding platform. It illustrates the
homepage, campaign detail page, and user dashboard layout, ensuring a user-friendly
and modern design.

For a crowdfunding platform, the wireframe typically includes pages like the home
page to showcase featured campaigns, the campaign listing page for browsing active
campaigns, and the campaign details page that provides in-depth information about
each project. Additionally, wireframes for the campaign creation page and user
dashboard are critical, as they define how project creators and contributors will
interact with the system. Features like wallet integration for cryptocurrency
transactions, reward tiers, and progress tracking are visually mapped out to ensure an
intuitive user experience.

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3.4 DATABASE TABLES

When designing a database for a crowdfunding platform that uses blockchain

technology, the structure needs to cater to various aspects like project details,

28
contributors, transactions, blockchain-specific information, and so on. Below is a
suggestion for possible tables that could be part of such a system.

This database structure can be modified according to specific needs such as the type of
blockchain (e.g., Ethereum, Polkadot) or the types of cryptocurrencies or tokens used. It
supports the key aspects of a blockchain-based crowdfunding system while leveraging
blockchain's features like smart contracts and transactions for secure and transparent
operations.

CHAPTER 4

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 SOFTWARE REQUIREMENT SPECIFICATION

4.1 FUNCTIONAL REQUIREMENTS

The functional requirements for a blockchain-based crowdfunding platform are focused on

ensuring the platform's key operations, such as handling projects, user interactions,
transactions, smart contracts, and the integration with blockchain for transparency and
security. Below are some key functional requirements for a crowdfunding platform utilizing
blockchain technology.

1.User Management

 User Registration and Authentication: The platform should allow users to register,
login, and authenticate securely. This includes verifying email addresses or integrating
with blockchain wallets (e.g., MetaMask, WalletConnect) for decentralized identity
verification.
 Role-based Access Control: Users should have different roles, such as Project
Owner, Contributor, and Admin, each with different permissions.
 Profile Management: Users can update their personal information (name, email, etc.)
and view their contribution history, ongoing projects, and rewards.

2.Project Creation and Management

 Project Submission: Project owners should be able to create and submit projects with
details like the project title, description, goal amount, timeline, and funding category.
 Project Verification: The platform may have an admin or automated system for
verifying the legitimacy of the project before allowing it to go live.
 Project Updates: Project owners should be able to provide updates to backers, share
progress, or inform them about changes to the project.

3. Blockchain Integration

 Smart Contract Creation: A smart contract should be deployed for each

crowdfunding project to automate the handling of funds, enforce rules.

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4.2 INTERFACE REQUIREMENTS

The interface requirements for a blockchain-based crowdfunding platform are crucial in

ensuring a user-friendly, accessible, and secure experience for all users (project owners,
contributors, admins, etc.). Below are the key interface requirements for such a platform:

1. User Registration and Login

 Sign Up/Sign In Forms: Simple forms for users to sign up or log in. These should
support email/password or blockchain wallet-based login (e.g., MetaMask,
WalletConnect).
 Email Verification: An email verification process should be in place during
registration.
 Password Management: Options for users to reset forgotten passwords.
 Blockchain Wallet Integration: Interface for connecting or creating a blockchain
wallet for transaction signing and identity verification (e.g., MetaMask).
 Role-based Access: Display different navigation and functionality based on the user's
role (e.g., Project Owner, Contributor, Admin).

2. User Dashboard

 Profile Overview: A personalized user profile dashboard where users can view:
o Their past contributions or projects they’ve supported.
o Their active and completed crowdfunding campaigns.
o Rewards they have received or are eligible for.
o Wallet balance (if cryptocurrency/tokens are used).
o Account settings and profile update options (name, email, etc.).
 Notifications: An area for viewing transaction updates, campaign notifications, project
updates, and reward notifications.

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3. Project Creation Interface

 Create New Project: An easy-to-use form for project owners to submit new
crowdfunding projects, with fields for:
o Project title, description, category, target funding goal.
o Deadline for crowdfunding campaign.
o Project images, videos, and promotional materials.
o Rewards for contributors (if applicable).
 Smart Contract Options: A simple workflow for project owners to define smart
contract rules, such as minimum funding goal, refund mechanism, and reward
distribution.
 Preview Project: A preview option for project owners to see how their project will
appear to contributors before submission.

4.3 PERFORMANCE REQUIEMENTS

Performance requirements for the sentiment analysis project include:

• Real-Time Processing: The system must process customer calls and analyze
sentiment in real-time with minimal latency, ensuring that agents receive timely
feedback during ongoing interactions.
• Scalability: The system should be capable of handling high volumes of calls and data
without compromising performance, ensuring that it can scale to accommodate a
growing number of support agents and customer interactions.
• Accuracy and Reliability: The sentiment analysis model must achieve a high level of
accuracy in detecting and classifying customer emotions with a minimal error rate.
The system should also be reliable, with minimal downtime or service interruptions.
• High Availability: The system should ensure 99.9% uptime, guaranteeing that it
remains accessible to agents and managers at all times to support continuous customer
service operations.

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4.4 DESIGN REQUIREMENTS

Design requirements for a blockchain-based crowdfunding platform are focused on ensuring

the system is user-friendly, accessible, secure, and scalable. These requirements address the
visual, interaction, architectural, and technological design aspects of the platform. Below are
key design requirements for such a platform:

1. User Interface (UI) Design

 Intuitive Navigation: The platform should have a clean, simple, and easy-to-navigate
interface for all user types (contributors, project owners, and admins).
o Target: Organize sections logically, using well-defined categories and labels
for projects, contributions, profiles, rewards, etc.
o Search Bar: Prominently display a search bar to help users quickly find
projects based on keywords, categories, or status.
 Responsive Design: Ensure that the platform is fully responsive and offers an
optimized experience across devices, including desktops, tablets, and smartphones.
o Target: The UI should automatically adjust to different screen sizes and
resolutions without compromising functionality or layout.
 Project Pages Design: The design should emphasize the key aspects of each
crowdfunding project, including the title, description, goals, progress bar, and reward
tiers. Visual elements like images, videos, and infographics should be used to convey
project details effectively.
o Target: Ensure that each project page has clear calls to action (e.g.,
“Contribute Now”), and contributors can easily see the funding progress and
their transaction status.
 Minimalist Aesthetic: A clean and modern design that avoids unnecessary clutter.
This will enhance user experience by keeping the focus on important project
information and contribution actions.
o Target: Maintain consistency in the color scheme, fonts, and layout to enhance
the platform's aesthetic appeal while making navigation straightforward.

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2. User Experience (UX) Design

 Seamless Contribution Process: The contribution flow should be simple and easy for
users, with clear steps to:
1. Select the amount to contribute.
2. Choose a reward (if applicable).
3. Connect or use a cryptocurrency wallet (e.g., MetaMask).
4. Confirm the transaction.

o Target: Ensure the contribution process requires minimal user input while
clearly guiding the user through each step.

 Error Handling and Feedback: Users should receive immediate feedback when
interacting with the platform, especially when making transactions or encountering
errors.

o Target: Provide clear and informative error messages, such as "Transaction

Failed" with possible actions to resolve the issue (e.g., retry, check wallet
balance, adjust gas fee).

 Transaction Progress Indicators: Provide real-time progress indicators during

transactions, such as loading spinners or status bars that show blockchain transaction
confirmation, ensuring users know where they are in the process.

o Target: Inform users with clear status updates (e.g., “Transaction Pending”,
“Transaction Confirmed”, or “Transaction Failed”).

 Gamification and Engagement: Incorporate interactive features such as badges,

milestones, and progress trackers to keep contributors engaged throughout the
campaign. For example, highlight backers who have contributed significant amounts
or early backers with special statuses.

o Target: Introduce social sharing and engagement tools to promote projects

(e.g., “Share on social media to earn rewards”).

34
  Mobile Optimization: Since many users will access the platform via mobile devices,
the design must be optimized for smaller screens with touch interactions.

o Target: Make sure all features are accessible on mobile, including wallet
connection, contribution processing, and project browsing.

3. Blockchain and Smart Contract Design

 Smart Contract Transparency: Users should have easy access to the details of smart
contracts, including rules around contributions, refunds, and reward distribution. Smart
contracts should be readable and understandable, even for non-technical users.
o Target: Provide a simplified version of the smart contract with key points, and
allow users to access the full contract on blockchain explorers (e.g., Etherscan).
 Gas Fee Information: If using Ethereum or similar blockchains, provide users with
transparent information about estimated gas fees before confirming a transaction, and
suggest optimal times for transactions with lower fees.
o Target: Display estimated gas fees in real-time, with suggestions to optimize
transaction costs when network congestion is high.
 Transaction Confirmation Screen: After completing a transaction, users should see a
confirmation screen displaying the transaction hash and link to view it on the
blockchain explorer.
o Target: Enable users to verify the transaction on their own for added
transparency.

4. Platform Architecture Design

 Modular Architecture: The platform should have a modular design that allows for
easy scaling, integration of new features (e.g., additional blockchain networks), and
future updates.
o Target: Ensure that backend services are loosely coupled, enabling changes in
one module without affecting others (e.g., contribution module, smart contract
module, user profile module).
 Decentralized Ledger: The blockchain should serve as the decentralized ledger for
storing transaction data, project funding details, and user contributions to ensure data
immutability and transparency.

35
 o Target: Use smart contracts for handling financial operations like
contributions, refunds, and fund releases, while off-chain data (like project
metadata) can be stored in a decentralized storage solution (e.g., IPFS).
 APIs for External Integrations: The platform should have a well-designed API layer
that allows external applications or services (e.g., wallets, third-party services) to
interact with the crowdfunding system.
o Target: Provide APIs for wallet integrations, payment processing, and smart
contract interactions.
 Blockchain Network Support: The platform should support multiple blockchain
networks (e.g., Ethereum, Binance Smart Chain, Polygon) to allow users to contribute
using different cryptocurrencies. Smart contracts should be designed to handle token
transfers across multiple chains.
o Target: Allow users to connect and contribute via different blockchain wallets
and networks.

5. Security Design

 Cryptographic Security: Ensure that all transactions and user data are protected using
the latest encryption techniques. Wallet integration should rely on secure methods to
authenticate and sign transactions without exposing private keys.
o Target: Ensure that private keys never leave the user's wallet, and implement
multi-factor authentication (MFA) for platform access.

4.5 NON-FUNCTIONAL REQUIREMENTS

Non-functional requirements (NFRs) define the overall qualities or attributes that the
blockchain-based crowdfunding platform must exhibit. These requirements focus on
performance, security, scalability, and other aspects that impact how the system behaves
rather than what it does. Below are the key non-functional requirements for a blockchain-
based crowdfunding platform:

1. Performance Requirements

36
  Response Time: The platform must respond to user interactions with minimal delay.
Transaction-related actions, such as contributing to a project or viewing project details,
should not exceed acceptable response times.
o Target: User interactions should be completed within 2-3 seconds for basic
operations, such as browsing projects or submitting a contribution. For
transaction-related actions, such as confirming contributions or processing
smart contracts, the platform should provide updates within 5-10 seconds.
 Throughput: The platform should be capable of processing a large number of
concurrent requests and transactions without performance degradation.
o Target: Handle at least 100,000 concurrent users during peak times and
support processing of up to 1000 transactions per second.
 Scalability: The platform should scale horizontally to handle growing user bases and
higher transaction volumes, especially as more crowdfunding projects are launched.
o Target: The system should be able to scale horizontally without significant
performance drops, allowing the platform to handle a growing number of users
and campaigns smoothly.
 Availability: The platform must ensure high availability, providing uninterrupted
access for users, including during high-traffic periods like campaign launches or
project milestones.
o Target: Achieve 99.99% uptime or higher, with failover mechanisms in place
to ensure continuous availability in case of hardware or software failures.

2. Security Requirements

 Data Security: All sensitive data, including personal information and transaction
details, must be securely stored and transmitted.
o Target: Data must be encrypted using strong encryption protocols (e.g., AES-
256) both at rest and in transit (e.g., TLS/SSL). Personal information should be
anonymized where possible.
 Authentication and Authorization: The platform must ensure that only authorized
users can access their accounts, manage crowdfunding campaigns, or contribute to
projects.

37
 o Target: Implement secure multi-factor authentication (MFA) for platform
users, including administrators and project owners. Ensure that permissions are
properly managed for contributors, project creators, and platform admins.
 Smart Contract Security: The platform’s smart contracts must be secure and free
from vulnerabilities, protecting users from exploits and malicious attacks.
o Target: Smart contracts should be audited by reputable third-party firms before
deployment. Vulnerability testing (e.g., reentrancy, gas usage) should be
performed regularly.
 DDoS Protection: Protect the platform from Distributed Denial of Service (DDoS)
attacks, which could disrupt access during high-traffic periods.
o Target: Implement measures like rate limiting, Web Application Firewalls
(WAF), and CDN-based DDoS protection to minimize the risk of service
disruption.

3. Usability Requirements

 User-Friendly Interface: The platform’s interface should be intuitive, easy to

navigate, and provide a seamless experience for users across all devices.
o Target: The platform should have an intuitive design that allows new users to
quickly understand how to contribute, track project progress, and view rewards.
The user interface should require minimal instruction, focusing on simplicity
and clarity.
 Multi-Device Support: The platform should be fully accessible across multiple
devices, including desktop computers, tablets, and smartphones.
o Target: The platform should provide a fully responsive design, with a
consistent user experience on mobile devices and desktops.

4.Maintainability Requirements

 Modular Architecture: The platform’s architecture should be designed for easy

maintenance and future updates, enabling independent module updates and integration
of new features.
o Target: The system should follow a microservices or modular architecture
approach that isolates different features (e.g., payment processing, user
profiles) to enable easier updates and maintenance.
38
 Automated Testing and Monitoring: The platform should have automated testing
tools and monitoring systems in place to identify potential issues before they affect
users.
o Target: Implement continuous integration/continuous deployment (CI/CD)
pipelines, including automated tests for smart contracts, UI, and backend
systems. Monitoring tools (e.g., Prometheus, Grafana) should be used to track
performance and errors in real time.

 Error Handling and Logging: The platform should have clear error handling
mechanisms to deal with failures (e.g., transaction issues, connection errors) and log
events for debugging.
o Target: Logs should be generated for all transactions and errors, and they
should be accessible for developers or system administrators to troubleshoot
issues. Errors should be logged with sufficient detail (e.g., timestamps, error
codes) to enable quick resolution.

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 CHAPTER 5

SOFTWARE FEATURES

The software features of a blockchain-based crowdfunding platform are designed to leverage

the benefits of blockchain technology (such as transparency, security, and decentralization)
while providing a seamless and user-friendly experience. Below are the key software features
that should be included in such a platform:

1. User Account Management

 User Registration and Login: Allow users to create accounts using traditional
email/password combinations or integrate blockchain wallets for decentralized
authentication (e.g., MetaMask, WalletConnect).
o Feature: Social media logins (optional), email verification, and wallet-based
sign-ups for project creators and contributors.
 Profile Management: Users can manage their profiles, view their contribution history,
track the projects they've supported, and manage their wallet connections.
o Feature: Editable profiles with options to add bio, social media links, and
project-related information.

2. Crowdfunding Campaign Creation

 Campaign Setup: Project owners can easily create crowdfunding campaigns, define
funding goals, set deadlines, and describe their project. They can also upload images,
videos, and other media.

40
 o Feature: Customizable campaign pages with sections for descriptions,
rewards, funding goals, and progress bars.
 Smart Contract Generation: Upon campaign creation, the platform generates a smart
contract that defines the terms of contributions, rewards, and conditions (e.g., refund
policy, milestone-based releases).
o Feature: Automatic deployment of smart contracts on supported blockchain
networks like Ethereum, Binance Smart Chain, or Polygon.
 Milestone-based Funding: Project owners can set different funding milestones (e.g.,
25%, 50%, 100% funded) with specific actions or rewards tied to each milestone.
o Feature: Funding milestones and automatic fund releases based on predefined
goals.

3. Contribution Management

 Contribution Process: Contributors can browse projects and make donations or

investments in cryptocurrency (ETH, BTC, or stablecoins). The system should offer
options for choosing different amounts and paying with different tokens.
o Feature: "Contribute Now" buttons with cryptocurrency payment options.
Integration with wallets like MetaMask for easy connection and fund transfer.
 Reward System: Project creators can offer various reward tiers (e.g., early access,
exclusive content, physical products) in exchange for different contribution amounts.
o Feature: A visual reward system where contributors can select and view
available reward tiers based on their contribution amount.
 Transaction History: Contributors can view their transaction history, including
successful contributions, transaction IDs, amounts, and any rewards they may have
claimed.
o Feature: A dashboard displaying all past contributions, including funding
amounts, timestamps, and reward details.

4. Smart Contract Management

 Automated Smart Contracts: Smart contracts are automatically created, executed,

and managed on the blockchain without manual intervention. These contracts handle
the rules for fund collection, reward distribution, and milestone unlocking.

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 o Feature: Transparent, immutable smart contracts that are visible to all users on
the blockchain. Integration with popular blockchain explorers (e.g., Etherscan).
 Smart Contract Audits: Provide tools or links to check the audit status of the smart
contracts (conducted by third-party auditing firms) to ensure their security and
functionality.
o Feature: Display of smart contract audit status with links to audit reports for
transparency.

5. Transparency and Real-Time Updates

 Transaction Transparency: All financial transactions (contributions, rewards) should

be visible on the blockchain, providing full transparency and accountability.
o Feature: Real-time transaction status updates with links to view detailed
blockchain records (transaction hashes, block confirmations).
 Progress Tracking: Projects should have a progress bar showing how much has been
raised against the funding goal, with real-time updates.
o Feature: Dynamic funding progress bar visible on the project page that updates
in real-time as contributions come in.

6. Decentralized Fund Distribution

 Escrow System: Funds are held in a decentralized escrow account until the campaign
goal is met. Once the funding goal is reached, funds are released to the project owner
via the smart contract.
o Feature: An escrow-based funding mechanism that holds funds in a secure
smart contract until the conditions (e.g., funding goal) are met.
 Milestone-based Fund Release: The platform should support releasing funds in
stages based on predefined milestones that are tracked and verified through the smart
contract.
o Feature: Milestone tracking with automatic fund release based on certain
criteria (e.g., percentage of goal reached).

7. Security Features

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  Wallet Integration: Users must be able to securely link their cryptocurrency wallets
to make contributions, receive rewards, and track project investments.

5.1 ALGORITHMS AND DATASETS USED

The blockchain-based crowdfunding platform relies on a set of algorithms and data structures
to manage various processes such as fundraising, contributions, smart contract execution,
reward distribution, and more. Here’s an overview of key algorithms and the types of data
used in such a system:

1. Smart Contract Algorithms

Smart contracts are fundamental in ensuring trust and transparency in a blockchain-based

crowdfunding platform. The algorithms for smart contract execution define how the
contributions, funding milestones, rewards, and refunds are handled.

Key Algorithms:

 Escrow Management: When contributors pledge funds, the platform utilizes a smart
contract to hold funds in escrow until the project meets its funding goal or a milestone
is reached.
o Algorithm: Escrow Contract Execution Algorithm
 Steps:
1. Contributors send funds to the smart contract.
2. The smart contract checks if the project has met its funding goal
or milestone.
3. If the goal is met, the funds are released to the project owner.
4. If the goal isn’t met by the deadline, funds are refunded to the
contributors.
 Data Used: Contribution amount, funding goal, deadline, project
milestones.

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  Milestone Achievement: For projects with multiple milestones (e.g., 25%, 50%,
100% funding), the smart contract algorithm controls the release of funds based on the
completion of each milestone.
o Algorithm: Milestone Fund Release Algorithm
 Steps:
1. Contributors send funds to the smart contract.
2. The contract monitors the funding progress.
3. Once a milestone is reached, the funds are released to the project
owner.
 Data Used: Current funding total, milestone thresholds, contributor
addresses.
 Reward Distribution: Smart contracts automatically allocate rewards to contributors
once certain funding milestones are reached or project completion occurs.
o Algorithm: Reward Allocation Algorithm
 Steps:
1. The smart contract calculates the rewards for each contributor
based on their contribution.
2. Once the funding goal is met, it distributes the rewards to the
contributors based on their pledge.
 Data Used: Contributor’s wallet addresses, contribution amounts,
reward tiers, reward status.

2. Contribution Management Algorithms

 Transaction Confirmation: Blockchain algorithms confirm the validity of

contributions made by users. Once a user contributes to a project, a transaction is
initiated on the blockchain.
o Algorithm: Transaction Validation Algorithm
 Steps:
1. The contributor sends funds to the crowdfunding contract.
2. The transaction is verified on the blockchain (via consensus
algorithm, e.g., Proof of Work/Proof of Stake).
3. If the transaction is valid, it is recorded on the blockchain.

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  Data Used: Contributor’s wallet address, transaction amount, smart
contract address.
 Fund Raising Calculation: A common algorithm is used to calculate the total amount
raised for a project, including adding new contributions and tracking progress toward
the funding goal.
o Algorithm: Fundraising Total Calculation Algorithm
 Steps:
1. Each contribution amount is added to the total raised amount for
the campaign.
2. The contract checks if the funding goal is met, triggering the
fund release.
 Data Used: List of contributions, funding goal, funding timeline.

3. Reward Distribution Algorithms

 Reward Calculation: For each contributor, the algorithm computes the appropriate
reward based on their contribution and the reward tier defined by the project owner.
o Algorithm: Reward Tier Assignment Algorithm
 Steps:
1. For each contribution, the algorithm matches it with the reward
tier.
2. The reward is recorded in the system (e.g., a token, NFT, or
physical good).
3. Once the project is completed or a milestone is achieved, the
reward is distributed.
 Data Used: Contributor’s contribution amount, reward tiers, project
owner’s predefined reward list.

4. Crowdfunding Progress and Reporting Algorithms

 Funding Progress Calculation: This algorithm calculates how much money has been
raised versus the funding goal.
o Algorithm: Progress Calculation Algorithm
 Steps:
1. Sum all the contributions made to a project.
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 2. Calculate the percentage of the funding goal achieved.
3. Display the progress visually (e.g., progress bars).
 Data Used: List of contributions, funding goal, total raised amount.
 Transaction Analytics: The platform might provide analytics to project owners about
their campaign’s performance.
o Algorithm: Campaign Analytics Algorithm
 Steps:
1. Collect transaction data for each contributor (amounts,
timestamps).
2. Analyze trends, peaks in contributions, or user behavior.
3. Provide a dashboard with key metrics such as the number of
contributors, average contribution size, or times when
contributions peaked.
 Data Used: Contributor data (amounts, timestamps), campaign metrics.

5.2 WORKFLOW SUMMARY IN THE CODE

1. Campaign Creation: Project owners create campaigns with smart contracts to define
funding goals, milestones, and rewards.
2. Contributions: Contributors send cryptocurrency to the smart contract. The funds are
recorded, and milestones are tracked.
3. Fundraising Progress: The platform calculates and displays the progress of the
campaign.
4. Smart Contract Execution: Once the funding goal is reached, the funds are released
to the project owner. If the goal isn’t met, contributors are refunded.
5. Reward Distribution: Contributors receive rewards based on their contribution tier.

The pseudocode represents a basic workflow where the platform manages campaigns, tracks
progress, executes smart contracts, handles transactions, and manages user interactions. It can
be extended with more complex logic (e.g., handling NFTs as rewards, multi-signature
wallets, and advanced analytics)

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 CHAPTER 6

PROJECT SNAPSHOTS

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 Figure 6.1

CHAPTER 9

REFERENCES

Blockchain & Smart Contracts: https://www.dappuniversity.com/articles/how-to-build-a-

blockchain-app

CryptoRelief platform: https://cryptorelief.in

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Next JS Documentation: https://nextjs.org

Learning Solidity Language: https://cryptozombies.io/

web3.js - Ethereum JavaScript API: https://web3js.readthedocs.io/en/v1.3.4

How data is stored in Ethereum Blockchain: https://laurentsenta.com/articles/storage-and-

dapps-on-ethereum-blockchain

Research paper by Cumming, D., Johan, S., & Zhang, M. (2019). "Crowdfunding and Social
Entrepreneurship.”

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