Review on Crowdfunding Platform Using Blockchain

Abstract

Crowdfunding has become a popular method for raising funds; however, traditional platforms suffer from limitations such as lack of transparency, risk of fraud, and dependence on intermediaries. This project proposes a decentralized crowdfunding platform that leverages blockchain technology and smart contracts to ensure secure and transparent fund management. The system introduces an admin-based verification mechanism, where users and campaigns are validated using identity documents to enhance trust and authenticity. In addition, the platform supports a hybrid payment model, allowing campaigns to be created in either Ethereum (ETH) or Indian Rupees (INR). ETH-based campaigns operate on the blockchain using MetaMask, while INR-based campaigns support traditional payment methods such as UPI and card transactions. The system also includes features such as campaign categorization, user dashboards, and decentralized storage using IPFS. By combining blockchain technology with conventional payment systems, the proposed platform provides a flexible, secure, and accessible solution for modern crowdfunding applications.

Introduction

Traditional crowdfunding platforms are centralized, leading to problems such as high transaction fees, lack of transparency, limited control over funds, and increased risk of fraud due to weak verification systems. Contributors often cannot track how their money is used, which reduces trust in these platforms.

To solve these issues, the proposed system uses blockchain and smart contracts to ensure transparent and tamper-proof transactions. Smart contracts automate processes like fund collection and distribution without intermediaries. The system also includes a verification mechanism (KYC-based admin approval) to validate both users and campaigns, reducing fake accounts and fraudulent projects.

The methodology includes system design using a layered architecture, smart contract development in Solidity, frontend development using React with MetaMask integration, and backend development using Express.js for authentication and admin control. A hybrid storage system is used, combining MongoDB for structured data and IPFS for decentralized file storage. The platform is tested on a blockchain test network and deployed using modern cloud services.

The proposed system allows users to register, verify identity, create campaigns, and contribute funds securely. Campaigns are categorized (e.g., education, healthcare, technology), and all activities are monitored by an admin for approval and authenticity.

Conclusion

The proposed decentralized crowdfunding platform effectively addresses the limitations of traditional crowdfunding systems by leveraging blockchain technology and smart contracts. The system ensures transparency, security, and trust by recording transactions on an immutable ledger and automating fund management processes. The integration of admin-based user and campaign verification enhances reliability by preventing fraudulent activities and ensuring authenticity. Additionally, the introduction of a hybrid payment model, supporting both Ethereum (ETH) and Indian Rupees (INR), improves accessibility by allowing users to participate using either blockchain-based or traditional payment methods. Features such as campaign categorization, user dashboards, and profile management further enhance usability and provide a comprehensive user experience. By combining decentralized technology with real-world payment systems and verification mechanisms, the proposed platform offers a scalable, secure, and practical solution for modern crowdfunding applications.

References

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Copyright

Copyright © 2026 Bhushan Patil, Nayan Chaudhari, Ganesh Biradar, Shreepad Salvi, Prof. Asha Gaikar. 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.