Blockchain-Powered Crowdfunding: Assessing the Viability, Benefits, and Risks of a Decentralized Approach

Abstract

This research paper presents a comparative study of traditional crowdfunding platforms and crowdfunding platforms that use blockchain technology. The paper first provides background information on crowdfunding and the challenges faced by investors, such as fraud and lack of transparency. It then explains blockchain technology and its potential benefits for crowdfunding platforms, such as increased security, transparency, and efficiency. The paper then outlines the methodology used to design and implement a crowdfunding platform using blockchain technology and collects data to analyze the platform’s performance. The results of the analysis show that blockchain-based crowdfunding platforms have several advantages over traditional platforms, such as increased security, transparency, and cost-effectiveness. Additionally, the paper evaluates the platform’s performance using various parameters and compares it with traditional crowdfunding platforms. The study finds that blockchain-based crowdfunding platforms have significant advantages over traditional platforms, such as faster transaction processing and lower transaction fees. Finally, the paper discusses the implications of the research findings, makes recommendations for future work, and highlights the limitations of the study. Overall, this study provides valuable insights into the potential of blockchain technology for crowdfunding platforms and serves as a basis for further research in this area.