Blockchain-Based Fund Management System for Indian Temples

Abstract

This innovative system harnesses the power of blockchain technology to tackle ongoing governance issues in managing temple funds. By combining smart contracts with a secure and user-friendly digital interface, the platform guarantees tamper-proof recording and real-time tracking of donations. This decentralized approach significantly reduces the risk of fraud, boosts financial transparency, and builds stronger trust between devotees and temple authorities. Smart contracts streamline fund allocation and keep unchangeable transaction records, ensuring that donations are utilized precisely as intended. The system not only encourages ethical financial practices but also aligns with the larger mission of preserving cultural and religious heritage through responsible resource management. Moreover, the use of blockchain technology gives stakeholders enhanced control, auditability, and confidence in the donation process, ultimately aiding in the modernization and credibility of temple governance.

Introduction

In the digital era, blockchain technology is transforming traditional systems with its secure, transparent, and decentralized ledger. This project proposes using blockchain to improve temple donation management in India, where manual systems are still common and vulnerable to corruption, misallocation, and lack of accountability.

Problem Statement

Temples receive significant donations in cash and gold, but outdated management practices lead to financial discrepancies and reduced trust among devotees. The solution is to create a blockchain-based donation platform that ensures transparency, automation, and real-time monitoring.

Literature Review Highlights

• Blockchain was introduced by Nakamoto (2008) and is now used beyond cryptocurrencies in areas like voting, identity, and public administration.

• Studies show blockchain’s ability to boost donor trust and transparency through immutable transaction records.

• Researchers (e.g., Sharma & Prakash, 2020) support blockchain as a digital trust framework for religious fund governance.

Proposed System Architecture

The system has four main components:

1. User Interface: Web-based (React.js) portal for registration, donation, and record viewing.

2. Backend Server: Built with Node.js and Express.js, handling user data, transactions, and authentication (JWT).

3. Blockchain Layer: Ethereum smart contracts manage donations using MetaMask for ETH transactions.

4. Database: MongoDB stores off-chain data like temple profiles, transaction logs, and user info.

Key Features

• Smart Contracts automate donations, ensure traceability, and prevent tampering.

• Role-Based Access for admins, temple authorities, and users.

• MetaMask Integration for secure digital wallet interaction.

• Blockchain Ledger automatically logs all transactions, enhancing accountability.

Process Flow

1. Super Admin adds temples and shares credentials with temple admins.

2. Temple Admins register and verify temple details.

3. Users (Devotees) log in, donate ETH via MetaMask, and view donation history.

4. All Transactions are logged on the blockchain in real time for public and administrative review.

Benefits

• Reduces corruption and misuse of temple funds.

• Increases donor confidence and transparency.

• Enables real-time financial monitoring.

• Encourages broader community engagement.

Challenges & Future Scope

• Limited accessibility due to web-only interface—future development includes mobile and desktop apps.

• Scalability concerns—suggest use of cloud platforms (AWS, Azure) and Layer 2 solutions (e.g., Polygon CDK) for performance optimization.

• Future features: AI-based analytics for donation patterns, automated reporting, and improved financial planning.

Conclusion

The creation of a blockchain-based temple fund management system is a major leap towards modernizing how religious finances are managed. Tailored for temple administrators and their supporters, this system uses web technologies to create a secure, transparent, and efficient way to handle donations. By harnessing the power of blockchain’s decentralized structure and smart contracts, it tackles common problems like manual errors, data tampering, and the need for middlemen. Donations are automatically allocated to five designated accounts through smart contracts, ensuring everything is fair, traceable, and efficient. Each transaction is recorded on an unchangeable ledger, giving everyone involved access to a clear and secure record. One of the most impressive aspects of this system is its real-time audit trail, which boosts accountability and oversight for both users and administrators. This not only builds trust among donors but also gives temple authorities a solid way to responsibly track the flow of funds. While the backend is technically sound, there’s still room to enhance the user experience. Improving the frontend to better convey needs and donation statuses could make user engagement even smoother. All in all, integrating blockchain technology brings a high level of security, integrity, and reliability, laying a strong foundation for ethical and efficient donation management in temples. This system not only enhances operational control but also strengthens trust in religious institutions through clear and transparent digital practices.

References

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Copyright

Copyright © 2025 Rajnandan Ray, Saurabh Vaidya, Shreya Shirbhate, Gaurav Rai, Prof. C.V. Andhare. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.