1.

Introduction:

Blockchain technology and smart contracts have gained significant attention in recent years due to
their potential to revolutionize various industries. This literature survey focuses on the application of
blockchain and smart contracts in crowdfunding, aiming to explore how these technologies can
enhance the traditional crowdfunding model.

2. Traditional Crowdfunding vs. Blockchain Crowdfunding:

Traditional crowdfunding platforms like Kickstarter and Indiegogo have been successful in helping
individuals and businesses raise funds for their projects. However, these platforms are not without
limitations. They often involve intermediaries, high fees, and limited transparency. Blockchain-based
crowdfunding offers an alternative approach by leveraging decentralized technology.

3. Smart Contracts in Crowdfunding:

Smart contracts, self-executing contracts with the terms of the agreement directly written into code,
can automate various aspects of crowdfunding. They enable automatic fund disbursement when
certain conditions are met, providing increased transparency and reducing the need for
intermediaries.

4. Existing Blockchain-Based Crowdfunding Platforms:

Examples of blockchain-based crowdfunding platforms include Ethereum-based Initial Coin Offerings

(ICOs) and tokenized crowdfunding on platforms like Polkadot and Tezos. These platforms have
gained attention for their ability to facilitate fundraising through token sales.

5. Use Cases and Applications:

Beyond traditional crowdfunding, blockchain technology and smart contracts enable various
innovative use cases. These include crowdfunding for Non-Fungible Tokens (NFTs), decentralized
finance (DeFi) lending and borrowing, and community-driven projects funded through governance
tokens.

6. Challenges and Risks:

While blockchain-based crowdfunding offers numerous advantages, it also comes with challenges.
Security is a significant concern, with several high-profile hacks and vulnerabilities identified in the
past. Additionally, regulatory compliance and legal uncertainties can pose barriers to adoption.

7. Future Directions:
The future of blockchain-based crowdfunding holds promise with ongoing efforts to address
scalability issues and enhance user experiences. Innovations in Layer 2 solutions and interoperability
protocols aim to make blockchain crowdfunding more accessible and efficient.

8. Conclusion:

In conclusion, blockchain technology and smart contracts have the potential to transform
crowdfunding by increasing transparency, reducing costs, and enabling innovative funding models.
However, challenges such as security and regulation must be addressed for widespread adoption.