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Blockchain-Based Crowdfunding

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Blockchain Technology for Industry 4.0

Part of the book series: Blockchain Technologies ((BT))

Abstract

Crowdfunding has disrupted the way of financing and allowed the startups to raise funds without much hustle and bureaucracy. In the existing model, Pool of people contribute small amounts of money towards a project or cause and expect some financial or non-financial returns. A crowdfunding platform takes a commission and matches the needs and expectations of funders and fundraisers. Blockchain technology is a decentralized ledger, more efficient, safe and tamper-proof system of nodes in connection. Introduction of blockchain in crowdfunding will make it more reliable, transparent, trusted, decentralized, cost-efficient and convenient. A crowdfunding platform which was acting as an intermediary before will only provide the technology and name is its own crypto-currency which will act as a medium of transaction and exchange. Fundraisers will generate their own currency and everyone on the network will be notified about the project. Funders will buy this crypto-currency to claim its share in the project and can withdraw any time by selling the currency and losing the share in a project or transferring it to another project. Blockchain can further improve this unique and contemporary way of raising funds by making out more reliable and transparent.

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Author information

Authors and Affiliations

  1. Endicott College of International Studies, Woosong University, Daejeon, South Korea

    Hasnan Baber

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  1. Hasnan Baber
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Correspondence to Hasnan Baber .

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Editors and Affiliations

  1. Universidade do Vale do Rio dos Sinos, Sao Leopoldo, Brazil

    Rodrigo da Rosa Righi

  2. ICT Lab, Information and Communications Technologies (Inatel), Santa Rita do Sapucai, Minas Gerais, Brazil

    Antonio Marcos Alberti

  3. Endicott College of International Studies, Woosong University, Daejeon, Korea (Republic of)

    Madhusudan Singh

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Baber, H. (2020). Blockchain-Based Crowdfunding. In: Rosa Righi, R., Alberti, A., Singh, M. (eds) Blockchain Technology for Industry 4.0. Blockchain Technologies. Springer, Singapore. https://doi.org/10.1007/978-981-15-1137-0_6

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  • DOI: https://doi.org/10.1007/978-981-15-1137-0_6

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  • Online ISBN: 978-981-15-1137-0

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