TRUST FUND DECENTRALIZED APPLICATION

Mr. M. RAM BHUPAL 1, M.Tech (Ph.D.), Department of INF,

Vasireddy Venkatadri Institute of Technology, Nambur, Guntur Dt., Andhra Pradesh.

B. VEERA VENKAIAH2, D. RAGHURAM3, P. AFREED KHAN4, G. SRIJEESH5

2,3,4,5
UG Students, Department of INF,
Vasireddy Venkatadri Institute of Technology, Nambur, Guntur Dt., Andhra Pradesh.
1
E-Mail ID: rambhupalm@vvit.net, 20BQ5A1204@vvit.net, 19BQ1A1230@vvit.net,
19BQ1A1201@vvit.net, 19BQ1A1240@vvit.net

Abstract
After the COVID-19 pandemic hit throughout the globe, the financial system of most
nations was given tampered with. Since then, online engagement is at its top and people
determined social media as a brand new weapon to invest in and promote their enterprises
and skills. This led to the advancement of a capability idea of investment, referred to as
crowdfunding.
All the traditional crowdfunding systems are not much secure and reliable. In order to
protect the funds from being misused and the platform from getting hacked, we should
implement the solution using Blockchain.
The use of blockchain technology in crowdfunding has several advantages, including
transparency, security, and lower transaction costs. Since blockchain transactions are
recorded in a public ledger, all stakeholders can access and verify the transactions,
ensuring transparency. Additionally, the use of smart contracts ensures that funds are
automatically distributed based on pre-determined rules, reducing the risk of fraud or
misuse of funds.

Keywords: Crowdfunding, Cryptocurrency, Blockchain,Dapp, Ethereum, Smart Contracts,

Metamask, Web3.

Introduction
Introducing our revolutionary Our platform allows entrepreneurs to
crowdfunding platform, built on the latest issue digital tokens or coins to investors,
blockchain technology. Our platform which can be used to access their services
provides a decentralized, secure, and or products or traded on cryptocurrency
transparent environment for exchanges. With the use of smart
entrepreneurs and startups to raise funds contracts, our platform ensures that all
from a global community of investors transactions are secure, automated, and
without the need for intermediaries. transparent, providing an efficient and

Volume 12 Issue 04, April 2023 ISSN 2456 – 5083 Page: 1

cost-effective alternative to traditional "Crowdfunding on the Blockchain: A Case
fundraising methods. Study of Crowd Genie" by Wan Nurhayati
et al. (2020): This paper presents a case
study of Crowd Genie, a Singapore-based
peer-to-peer lending platform that uses
blockchain technology for crowdfunding.
The authors examine the benefits and
challenges of using blockchain for
We take the security of our platform
crowdfunding and discuss the potential
seriously, and our advanced blockchain
for future applications.
technology ensures that all transactions
"Blockchain and Crowdfunding: A
are immutable and tamper-proof,
Comprehensive Review" by Arif Sari et al.
reducing the risk of fraud and scams.
(2021): This paper provides a
Additionally, our platform provides a level
comprehensive review of the existing
of transparency that is unparalleled,
literature on blockchain and
allowing investors to track their
crowdfunding. The authors analyze the
investments and monitor the progress of
benefits and limitations of using
the projects they have funded.
blockchain for crowdfunding and identify
areas for further research.
With our blockchain crowdfunding
"Blockchain Crowdfunding Platforms: A
platform, entrepreneurs and startups can
Comparative Study" by Sergio Oliveira et
access a global pool of investors, raise
al. (2019): This paper compares different
funds quickly and efficiently, and bring
blockchain-based crowdfunding
their innovative ideas to life.
platforms, including Giveth, Colony, and
LITERATURE SURVEY
BitGive. The authors evaluate the
Here is a brief literature survey on
technical features and usability of each
crowdfunding using blockchain:
platform and discuss the potential for
"Blockchain for Crowdfunding:
blockchain technology to revolutionize
Decentralized Applications (DApps)" by
crowdfunding.
Jia-JhenSyu et al. (2018): This paper
"Blockchain and Crowdfunding: A Perfect
explores the potential of blockchain
Match?" by Nicholas Marques et al.
technology for crowdfunding, highlighting
(2019): This paper examines the potential
the benefits of decentralization,
of blockchain technology to improve the
transparency, and security. The authors
crowdfunding process, particularly in
discuss the technical aspects of using
terms of transparency and security. The
blockchain for crowdfunding and provide
authors analyze the benefits and
a framework for developing blockchain-
challenges of using blockchain for
based crowdfunding platforms.
crowdfunding and discuss the potential
for future applications.

Volume 12 Issue 04, April 2023 ISSN 2456 – 5083 Page: 2

Problem Identification technology. Since it is known for its
Humans constantly were insecure about security, efficiency, and decentralization,
the risks crowdfunding platforms come it is proposed that deploying a
with. The most not unusual troubles they crowdfunding application using
face are maximum of the campaigns blockchain methodology is a good idea
around the world aren’t regulated and compared to a normal application. We will
some of the group investment campaigns be using smart contracts to automate
grew to become out to be a fraud. Except transactions and funds will be directly
for the completion of some projects sent to the user.
became extensively not on time. To solve Blockchain uses methodologies such as:
the above-listed issues, we got here up Peer to Peer: Peer-to-peer (P2P) is a type
with the answer as our challenge. A of network architecture where nodes in
Crowdfunding platform that allows the network communicate directly with
donation over cryptocurrency. Crowd each other without the need for a central
fundraising includes lots of transactions, authority or intermediary. Blockchain
therefore it’s vital to deal with and file technology is a type of P2P network
them legally. A smart contract is used as architecture where nodes in the network
a result, which is a transaction protocol validate and record transactions without
that routinely incorporates, manages, the need for a central authority.
and statistics transaction movements on Consensus Protocol: Consensus protocol
behalf of the undertaking’s builders and is a set of rules or algorithms that enable
buyers in line with the contract. which nodes in a distributed network to agree on
includes all projects and the alternative the state of the network, even in the
that manages transactions for each presence of faulty or malicious nodes. In
project. The primary additives of any blockchain technology, consensus
crowdfunding are the undertaking protocols are used to ensure that all
supervisor, funder, providers, smart nodes in the network have a consistent
contract, spending request, and balloting view of the blockchain.
mechanism.
Prerequisites
Methodology There are a few requirements to take into
This research paper explains the account before creating a crowdfunding
importance of blockchain over centralized application using blockchain:
systems which are vulnerable. We
Solidity: One should have a basic
collected all the crowdfunding scams that
understanding of the Programming
happened in the centralized system as
language “solidity” which is used to write
which funds are stolen and being
a smart contract on Ethereum
misused by third parties. Hence we came
Blockchain. It is the best language to
up with a solution by using blockchain

Volume 12 Issue 04, April 2023 ISSN 2456 – 5083 Page: 3

create Decentralized Applications(Dapps) Regional Regulations: Awareness of
on Ethereum Blockchain. legal and regulatory considerations, such
Blockchain: Blockchain is a digital as compliance with security laws, anti-
ledger technology that provides a secure money laundering regulations, and Know
and decentralized way of storing and Your Customer requirements based on
sharing information. It is based on a their country and region.
network of computers that work together
to validate and record transactions. One Implementation
of the key benefits of blockchain is its To implement a crowdfunding application
decentralization, which means that no using blockchain, the first step is to
central authority controls the network, choose the appropriate blockchain
and transactions are validated by a platform and we are using Ethereum
consensus mechanism that involves blockchain which is famous for its Dapps.
multiple participants. This creates Secondly, write a smart contract that
greater transparency and accountability specifies every parameter of a Funding
in transactions, making it a reliable and project such as Title, Amount to be raised,
trustworthy way of storing and sharing and Deadline inside the .sol file and, then
information. Blockchain also provides deploy it onto the Ethereum blockchain.
security through the use of cryptographic Smart contracts are self-executing
algorithms that ensure that data is programs that run on the Ethereum
protected against tampering and blockchain and can be used to automate
unauthorized access. the crowdfunding process.
Metamask: MetaMask serves as a bridge The Next step in implementation is to
between the user's browser and the develop a user-friendly interface to
Ethereum network, providing a secure interact with the web3 decentralized
way to manage digital assets and interact application using web3 libraries. We are
with dApps. It allows users to store and implementing a native react application
manage cryptocurrencies, such as Ether with an intuitive interface.
(ETH), and other ERC-20 tokens, and
also allows users to connect to dApps
and sign transactions without leaving
their browsers.
User Interface: One must have basic
web development skills to create a user
friendly interface to interact with the
application. Using web3 libraries to
After the development of the interface,
interact with the blockchain is
users can create campaigns, donate to
mandatory.
existing campaigns/projects, edit ,and

Volume 12 Issue 04, April 2023 ISSN 2456 – 5083 Page: 4

even delete their campaigns. If the project Donating to the campaign:
got the defined funds within the deadline
the payout will be automatically
transferred to the campaign creator.
Result
Home page:

Funds distribution:

Connecting Metamask:

Limitations
Low adoption: One of the biggest issues
is that blockchain technology has only
Creating a campaign: received a limited amount of adoption,
which means that not everyone is aware
of how to use meta mask and interact
with web3 decentralized applications.
Regulatory issues: It may be difficult to
verify compliance with legal and
regulatory standards because blockchain-
based funding systems are not subject to
Dashboard: any governmental control. As many
countries oppose the innovation of
blockchain, we might face some
regulatory issues.
High transaction fees: Transactions on
the Ethereum blockchain are subject to
fees, which can be significant. This can be
a barrier to entry for smaller projects or
investors who cannot afford the fees.
Future scope

Volume 12 Issue 04, April 2023 ISSN 2456 – 5083 Page: 5

 Several potential future developments Beyond Banks and Money (pp.
could address the limitations of 239-278). Springer, Cham.
crowdfunding using the Ethereum [6] Ongaro, D., & Ousterhout, J.
blockchain: (2014). In search of an
Deploying on multiple chains: Since it’s understandable consensus
only available on the Ethereum chain. We algorithm. In USENIX Annual
can deploy this application to other L1 Technical Conference (pp. 305-
chains such as polygon, Aptos, near, etc. 320).
Using L2 solutions: The application we [7] Swan, M. (2017). Blockchain: how
now deployed uses layer 1 which results it works and why it matters.
in a high transaction fees. This can be Harvard Business Review, 95(1),
overcome by using Layer2 solutions such 118-127.
as Optimism, arbitral, base ,etc. [8] Merkle, R. C. (1987). A digital
References signature based on a conventional
[1] Crosby, M., Pattanayak, P., Verma, encryption function. Advances in
S., & Kalyanaraman, V. (2016). Cryptology—CRYPTO’87, 369-378.
Blockchain technology: Beyond [9] Zheng, Z., Xie, S., Dai, H. N.,
bitcoin. Applied Innovation, 2(6- Chen, W., & Wang, H. (2018).
10), 71-81. Blockchain challenges and
[2] Swan, M. (2015). Blockchain: opportunities: A survey.
Blueprint for a new economy. International Journal of Web and
O'Reilly Media, Inc. Grid Services, 14(4), 352-375.
[3] Böhme, R., Christin, N., Edelman, [10] Tasca, P., & Tessone, C. J.
B., & Moore, T. (2015). Bitcoin: (2015). Bitcoin as a decentralized
Economics, technology, and currency: From theory to empirical
governance. Journal of Economic evidence. Economic Sociology_the
Perspectives, 29(2), 213-238. European Electronic Newsletter,
[4] Li, X., Jiang, P., Chen, T., Luo, X., 16(3), 4-13.
& Wen, Q. (2017). A survey on the
security of blockchain systems.
Future Generation Computer
Systems, 82, 307-324.
[5] Peters, G. W., & Panayi, E. (2015).
Understanding modern banking
ledgers through blockchain
technologies: Future of transaction
processing and smart contracts on
the internet of money. In Banking

Volume 12 Issue 04, April 2023 ISSN 2456 – 5083 Page: 6