A Reliable and Secure Crowdfunding Platform Using Decentralized Blockchain

  • Hironori Tanise Graduate School of Informatics, Osaka Metropolitan University, Osaka 558-8585, Japan
  • Quoc Duy Nam Nguyen Graduate School of Informatics, Osaka Metropolitan University, Osaka 558-8585, Japan
  • Istiaque Ahmed Graduate School of Informatics, Osaka Metropolitan University, Osaka 558-8585, Japan
  • Thi Hong Tran Graduate School of Informatics, Osaka Metropolitan University, Osaka 558-8585, Japan
DOI: https://doi.org/10.21553/rev-jec.365

Abstract

Crowdfunding is a significant avenue for raising funds over the Internet to bring ideas into reality without relying on traditional funding sources. However, conventional centralized crowdfunding systems suffer from issues such as trustworthiness and transparency. In other words, it is necessary to ensure the reliability of information regarding project details, progress, and money exchanges, and to store this information in a form that cannot be altered. To ensure that the quality of projects is not degraded due to these causes and resolve the existing limitations, we propose a decentralized crowdfunding system using blockchain technology with two major contributions: "Decentralized Voting", and the "Decentralized Evaluating" methods. The Decentralized Voting Method aims to solve a particular platform's biased review by voting on the project's prospects and credibility. The Decentralized Evaluating Method aims to ensure project quality by exploiting the transparency of the invested projects. In this proposed blockchain-based solution, we used React and TypeScript for the front end and Rust-empowered Substrate at the backend. By using these methods, we verify through simulation that the implemented system works as proposed. This study identifies problems in crowdfunding and their causes, and then proposes a system that uses the two methods described above. The proposed system is expected to be a reliable distributed crowdfunding system.

Author Biographies

Hironori Tanise, Graduate School of Informatics, Osaka Metropolitan University, Osaka 558-8585, Japan
Hironori Tanise is currently Master student in Graduate School of Informatics, Osaka Metropolitan University (OMU). His research interest includes Blockchain, cryptography, Dapps, Ethereum, hardware circuit design, etc.
Quoc Duy Nam Nguyen, Graduate School of Informatics, Osaka Metropolitan University, Osaka 558-8585, Japan
Quoc Duy Nam Nguyen is currently PhD student in Graduate School of Informatics, Osaka Metropolitan University (OMU). His research interest includes Blockchain, AI, cryptography, Dapps, etc.
Istiaque Ahmed, Graduate School of Informatics, Osaka Metropolitan University, Osaka 558-8585, Japan
Istiaque Ahmed is currently PhD student in Graduate School of Informatics, Osaka Metropolitan University (OMU). His research interest includes Blockchain, cryptography, Dapps, etc.
Thi Hong Tran, Graduate School of Informatics, Osaka Metropolitan University, Osaka 558-8585, Japan
Thi Hong Tran is a full-time lecturer at the Osaka Metropolitan University, Osaka 558-8585, Japan. Her research interests include digital hardware circuit design, algorithms related to wireless communication, communication security, blockchain technology, and cryptography. She is a Senior Member of IEEE and a regular member of IEICE, REV-JEC, and others.

References

R. Wash, “The value of completing crowdfunding projects,” in Proceedings of the International AI Conference on Web and Social Media, vol. 7, no. 1, 2013, pp. 631–639.

H. Baber, “Blockchain-based crowdfunding,” Blockchain Technology for Industry 4.0: Secure, Decentralized, Distributed and Trusted Industry Environment, pp. 117–130, 2020.

E. Mollick, “The dynamics of crowdfunding: An exploratory study,” Journal of Business Venturing, vol. 29, no. 1, pp. 1–16, 2014 [Online]. Available: https://www.sciencedirect.com/science/article/pii/S088390261300058X

D. Schatsky and C. Muraskin, “Beyond bitcoin,” Blockchain is Coming to Disrupt Your Industry, 2015.

M. N. Saadat, S. A. H. S. A. Rahman, R. M. Nassr, and M. F. Zuhiri, “Blockchain based crowd424 funding systems in malaysian perspective,” in Proceedings of the 2019 11th International Con425 ference on Computer and Automation Engineering, 2019, pp. 57–61.

I. Vakilinia, S. Badsha, and S. Sengupta, “Crowdfunding the insurance of a cyber-product using blockchain,” in 2018 9th IEEE Annual Ubiquitous Computing, Electronics Mobile Communica428 tion Conference (UEMCON), 2018, pp. 964–970.

J. Jun, “Factors behind the growth of chinese crowdfunding,” Journal of the Doctorate Studies in Social Sciences, vol. 17, pp. 43–61, 2020.

S. Nakamoto, “Bitcoin: A peer-to-peer electronic cash system,” Decentralized business review, pp. 21260, 2008.

M. Di Pierro, “What is the blockchain?” Computing in Science Engineering, vol. 19, no. 5, pp. 92–95, 2017.

E. Politou, F. Casino, E. Alepis, and C. Patsakis, “Blockchain mutability: Challenges and pro436 posed solutions,” IEEE Transactions on Emerging Topics in Computing, vol. 9, no. 4, pp. 1972–1986, 2021.

J. Sunny, N. Undralla, and V. Madhusudanan Pillai, “Supply chain transparency through blockchain-based traceability: An overview with demonstration,” Computers Industrial Engineering, vol. 150, p. 106895, 2020. [Online]. Available: https://www.sciencedirect.com/science/article/pii/S0360835220305829

K. Christidis and M. Devetsikiotis, “Blockchains and smart contracts for the internet of things,” IEEE Access, vol. 4, pp. 2292–2303, 2016.

substrate, “Architecture,” 2023, https://docs.substrate.io/fundamentals/architecture/.

Volume 1, Issue x, xxx–xxx15

T. Inoue, “[issues concerning crowdfunding : Prospects] kuraudofuandeinguwomegu446 rushomondaitembo (in japanese),” Yokohama business review, vol. 38, no. 2, pp. 35–47, 09 2017.

[Online]. Available: https://cir.nii.ac.jp/crid/1390853649528004736

D. Mitra, “The role of crowdfunding in entrepreneurial finance,” Delhi Business Review, vol. 13, no. 2, pp. 67–72, 2012.

Y. Uchida and T. Hayashi, “Success factors in crowdfunding,” Akamon Management Review, vol. 17, no. 6, pp. 209–222, 2018.

Y. Zhao, P. Harris, and W. Lam, “Crowdfunding industry—history, development, policies, and potential issues,” Journal of Public Affairs, vol. 19, no. 1, p. e1921, 2019.

H. Zhu and Z. Z. Zhou, “Analysis and outlook of applications of blockchain technology to equity crowdfunding in china,” Financial innovation, vol. 2, no. 1, pp. 1–11, 2016.

K. Konomi and N. Kamiyama, “Providing personal credit rating system using blockchain,” IEICE Technical Report, vol. 119, no. 460, pp. 165–168, 2020.

Published
2024-09-25
Issue
Vol. 14, No. 3 (Jul-Sep, 2024)
Section
Short articles
An author's submission implies that the manuscript has not been published previously, and is not currently submitted for publication elsewhere. Submission also implies that the Corresponding Author has consent of all authors (the Authors). Upon acceptance for publication transfer of copyright will be made to the Publisher of REV-JEC, who guarantees that full content of the published article is freely distributed on the Journal's website. The copyright transfer gives the Publisher of REV-JEC full authority to resolve any complaints of misuse or abuse (such as infringement or plagiarism) of the published article. The Authors have the freedom to redistribute and reuse the published article in any medium or format for any purpose, provided the original published article is properly cited. An article submission implies author agreement with this policy.