This document proposes a crowdfunding platform for charities that uses blockchain technology. Some key points:
- It allows individuals to donate their tax returns to charities and causes in a transparent way using the Ethereum blockchain.
- Users can create accounts to donate or request funds, with all transactions recorded on the blockchain for security and transparency.
- Funding programs include free campaigns, an auto pool circle program, and a planet slots 10x program.
- The blockchain provides advantages like transparency, security from data leaks/fraud, and lower fees compared to traditional platforms.
Innovative Methods in Media and Communication Research by Sebastian Kubitschk...
Vitul Chauhan’s crowd funding project
1. CROWDFUNDING CHARITY PLATFORM USING BLOCKCHAIN
Dr.S.Saranya
Department of Information Technology
Hindustan Institute of Technology and Science
Chennai, India
Saran.aamec@gmail.com
Vitul Chauhan
Sai Phanindra Muvvala
Department of Information Technology
Hindustan Institute of Technology and Science,
Chennai, India
saiphanindra84650@gmail.com
Raja Satwik
Department of Information Technology Department of Information Technology
Hindustan Institute of Science and Technology Hindustan Institute of Technology and Science
Chennai, India Chennai, India
vitulchauhan1997@gmail.com rajasatwik1@gmail.com
Abstract— From decades of years, almost all governments
across the world are collecting taxes from the earnings and
nobody have any idea where all these amounts are going to.
Most of us want to donate those amounts for some purpose
like charity/donations/sponsorships. At the same time,
everyone doesn’t know whom/which organization to trust and
handover the tax returns.
To avoid all these insecurities and doubts, the crowdfunding
portal/community/non-profit organization/peer-to-peer
automatic helping program was introduced where anybody
can donate/sponsor those money to people/startup who
needs/deserves it.
For secure funding transactions this CF application uses
blockchain technology. Each and every transaction will only
happen through Ethereum.
Here in this portal, users/employees across the world form as
a crowd to help each other and to show some humanity.
It’s a fully transparent and trustworthy and opensource
platform which focuses not only on cause but also how to
make it easier for the people to fund in simplest and smoothest
way possible.
Keywords - Crowd Funding, Charity, Ethereum,
Cryptocurrency, Blockchain, Community, NGO(Non-
Governmental Organization), Campaign, Sponsorship, Auto
pool circle, Planet slots.
I. INTRODUCTION
Through this portal, every individual can fund ideas
(Writings, music albums, movies, apps, software's, startups,
new products), causes (educational scholarships/building free
schools, hostels, old-age homes and for other reasons that you
believe in), charities (In recent years, crowdfunding platforms
have gained in popularity, with charity-focused sites becoming
more popular [1]),events (concerts, circus/magic shows,
talents) and recoveries (areas affected by floods, earthquakes,
cyclones, scarcity, etc.) Employees can sponsor their money to
one who has innovative startup ideas and can able to impress
them.
Any individual who are willing to donate can able to create an
account and link their Ethereum wallet to the portal and start
donating using auto pool circle program strategy, Smart
contracts are stored in the network's data logic layer and make
up the Ethereum blockchain. Nodes can read other smart
contracts, and they can be read and executed. As mentioned by
N. Srinivasan [2]. Any individual who are in need can create an
account, making a request presenting their ideas or conveying
about their needs of money. He can land a page requesting
donations and can make a campaign immediately after getting
approval and can get the financial help they need, Because the
specificities of each campaign may imperil the conclusions,
they should be generic and applicable to as many campaigns as
possible discussed by Landro pereira [3].
This crowdfunding portal gives you tools, such tools when
come to crowdfunding platform will provide a more
comprehensive view of the factors in successful a greater
understanding of the factors that influence the success of
crowdfunding campaigns, as well as the capacity to account for
any interdependencies as pointed by Hanjia Lyu [4]. it allows
the user to and tips along with opportunities to narrate story to
the society with the help of a special happiness team to get a
proper funding and response and guide you to post them on
social media too, As the crowdfunding site grows more
socialised, the number of comments from participants is
increasing. as mentioned by Long-Shen-Chen [5] After the
campaign is approved, a specialized team will help you to go
through this software and elaborate dashboard to monitor your
2. day-to-day progress of funding, and a backend tool will provide
you the key analytics on the dashboard and also The traditional
crowdfunding platforms are vulnerable to data leaks, high
transaction and platform fees, and rampant frauds which
happens due to the anonymity of user’s identity i.e., users
cannot be identified when they commit cybercrimes. As
blockchain is immutable and decentralized, it can reduce the
possibility of data breaches. This brings in transparency as there
is no central authority over the blockchain-based crowdfunding
By Sayyam gadam.[6]
Crowdfunding has been designed with three
programs/algorithms integrated in a single interface.
*Free campaign program, based on the idea of the project one
may find many sectors which can be invested as a view by
Michal Gregus [7].
*Auto pool circle program
*Planet slots 10x program
Advantage of using Ethereum as a platform for
transactions:
*Ethereum transactions and smart contrasts are serially
executed by miners and they are not concurrent and whereas
EVM executes them as a moment as mentioned by Sara
Rauhani [8], and Ethereum has a peculiar property that it can
act as money as well as it can also store value and mostly it is
used by developers.
*It’s needed by developers to create smart contacts and to use
as a tradable instrument and apps on Ethereum network.
*It can be used as a form of investment whose value goes up
and down.
Each individual account holder must have an Ethereum wallet
while/before signing up for transactions. Each Ethereum wallet
will have a unique private key which helps the person to send
or receive funds with other parties.
Main advantage of our crowdfunding software is a
donor/account holder/can able to choose whom to donate and
what purpose/idea he’s/she’s donating for and how much
amount from his/her ITR (Income Tax Returns) crowdfunding
he/she wants to donate for them.
While coming to the legal information in Favor to
crowdfunding according to the Indian government:
*Section 80G says that a person can deduct their donating
certain amount for central/state relief funds, NGOs and other
charity related trusts/institutions from your annual income to
arrival of your taxable income.
*Under section 12A or 12AA of nonprofits registered, The Act
of Income Tax in the year 1961 recognized as an exemption of
tax by the income tax department. However, the tax exempt is
limited to the income of nonprofit from direct taxation. It offers
no exemption for indirect taxes.
*Under GST donations received by nonprofit organizations
doesn’t need to pay tax.
*Interests are payed for mortgages, all kinds of loans, can be
able to get deducted from annual taxes, effectively reducing a
person's taxable income of the year.
So indirectly sponsorships/donations done by the
stakeholders (portal users/donors) can be considered as a
charity and can be deducted from their respective income tax
returns.
II. RELATED WORK
Following the pool's first activation, you can join the planet
slots programme, where you must make a system-defined
donation or contribution by clicking the activate now icon, and
a smart system will divide your CF contribution to the current
eight uplines. It is made up of five planets, each of which
requires you to make a system-defined gift or contribution by
clicking the activate now icon, in exchange for a 10x
contribution of the planet activation value.
According to Dahui Li [9], scholarly attention is needed
when it comes to post-crowdfunding strategy because the
existing research focuses mostly on artists' behaviour and
tactics during the crowdfunding period. Sponsorship behaviour,
social media, product category, and reputation chasing are
among the current studies on factors influencing artists'
behaviour. Producers use tactics including crowdfunding
period design, information disclosure, and engagement with
sponsors, among others, to achieve the two-fold purpose of
crowdfunding, which is to satisfy the project's goal while also
raising the most money feasible, according to these contributing
factors. According to Peng Du [10], authors' post-
crowdfunding strategy has been accepted substantially less
attention, as evidenced by the aforementioned evaluation.
Furthermore, qualitative and empirical research is the most
common methodology in crowdfunding research—analytical
studies are relatively rare. Crowdfunding is a platform that
facilitates and organizes the crowdfunding process. At this
time, a slew of new platforms is springing up all over the world
in an attempt to offer innovative business tactics and services.
There will be a lot of testing just in the parts/phases/chapters
where there are relatively few restrictions.
Bernardino has created three distinct components that are
unique in the CF's component-1 is all about the respondents'
understanding of crowdfunding investment models and
variables related to lending and crowdfunding equity as a
source of funding for business entrepreneurs, as well as Co
project models. Component 2 concerns a respondent's
understanding of non-investment crowdfunding strategies, such
3. as donation and benefit-based models for non-profit funding.
The third and last component concerned how much knowledge
a responder had about Crowdfunding in general, including
terminology and how it obtains funds from individual investors.
Let's get this party started. Stockholders have little legal
recourse against issuers, and if the issuer defaults or commits
fraud, the money will never be isolated through the issuer, and
the issuer will be unable to make the required sheet of offer. A
platform may or may not carry out the due diligence needed by
the issuer when listing funds.
Crowdfunding is frequently utilized with or in addition to
social lending services. investing Crowdfund (CFI) is an
alternative to pledge-based crowdfunding that focuses on
investments. This term refers to secure connected inquiry and
debt fund-raising using crowdsourcing platforms, which have
recently arisen as a viable alternative to traditional funding
techniques such as bank loans and venture capitalists.
Crowdfunding in the medical sector (MC) is the most common
method of raising donations for medical charities. Patients
utilize MC to gather donations from people all over the world,
which they use to pay for medical treatments and operations.
When opposed to typical medical donations, medical
crowdfunding allows people in MC to move donations from
offline to online, resulting in cost savings, lower thresholds,
faster communication, and greater public contact in less time.
People are turning to MC instead of depending on restricted
governmental health services in many countries.
When it comes to crowd fundraising, blockchain is really
important. Blockchain, according to Vasvi Gupta [11], has the
ability to drastically transform how it is viewed. In an
irreversible manner, all transactions are time-stamped and
logged. Also, according to Mokter Hossain [12], The media has
taken attention of crowdfunding as well as attention from
academia and traditional stakeholders from all over world,
which intern can be greatly developed using blockchain
technology by implementing it in the platform as one of the
main functionalities in the portals. Despite the frameworks
involved, Gloria Grottolo[13] believes that blockchain-based
fundraising operations are beneficial in supporting potential
investors in detecting significant signals and drivers of notable
companies. It may also assist regulators and market players
better understanding how the current regulatory framework
relates to blockchain-based crowdfunding.
Once when a transaction is entered & executed, never be
modified or erased. Proof-of-Work (Pow) consensus protocol is
used for Ethereum which is the first use case of blockchain as
well as digital money, Chandranshu Gupta[16]. Ethereum uses
Blockchain as a way to solve the long-lasting problems of
double costs of digital cash and handing out of digital
transactions in a distributed way without the need of any
reliable third party, Muhammad Nasir Mumtaz Bhutta[17].
III. CONCEPTUAL FRAMEWORK
This conceptual framework consists of:
3.1 System overview
Fig.1 System Overview
The above diagram consists how modules integrate with each
other in the current crowdfunding system
3.2 Fund transfer process
4. Fig.2 Fund transfer process
Above diagram is all about how donation process and validation
work in this current crowdfunding system
IV. METHODOLOGY
Initially all the users enter into a community
enrollment module. There funders as well as help seekers can
join directly or through auto pool circle referral program. When
the user joins our platform after signing in, he/she would be
greeted by a beautiful landing page with menu and about info.
Every user must create and integrate their Ethereum wallet
through Ethereum wallet integration module to start
crowdfunding process. Here all the user data would be stored in
a graph data structure with nodes connecting to each other in
the order of auto pool circle algorithm.
Also, As a result, the Blockchain has the ability to
change the way people think about it. In an irreversible manner,
all transactions are time-stamped and logged. Smart contracts
can even automate transactions, allowing you to enhance your
productivity while also speeding up the process.
All the transaction details from funder end as well as
fund seeker end will be recorded in the form of blocks in
blockchain. While all the other crowdfunding platforms are
using “all or nothing” model, instead tis portal are uses “keep it
all” model for startups. All the fund that was raised during a
timestamp is all yours and need not to be returned if it doesn’t
meet the target fund.
This consists of
1. Data structure
2. Algorithm
3. Pseudocode
4.1 Data structure
Graph:
Graph is a data structure which contains a plain
connecting various nodes either in uni-directional way or in bi
directional way. A graph can be connected or be disconnected.
The users joining in our portal will be described as
nodes which forms various binary trees in a plane. Each node
contains user info of the specific user. And also, the value of
depth-first search or "backtracking" as a technique for solving
graph problems is illustrated by two examples. An enhanced
version of an algorithm for identifying the strongly linked
components of a directed graph and an algorithm for finding the
biconnected components of an undirected graph. As a thought
of Robert Tarzan [15]
4.2 Algorithm
4.2.1 Depth First Search (DFS) algorithm:
DFS is an algorithm used for traversal and searching
nodes of a tree or a graph which starts with a random node in a
graph or with a root node in a tree. DFS has lesser time
complexity and memory efficient compared to BFS. It is best
suitable even if target node is far from the source. And also,
According to Palanisamy [14], the depth-first search is a tree
search technique that allows traversal from a source node to
neighbour nodes next to the source node in a graph.
DFS is used to fetch a user detail from the
disconnected graph in our portal.
Steps for DFS:
Step 1: Initialize all node as unvisited and all edges as
undiscovered.
Step 2: Pick a random node from the graph
Visit the node(i.e., search for unvisited nodes in the
disconnected 2d graph and Visit(V,GR))
Step 3: Any adjacent undiscovered edges? Then check with the
adjacent nodes of that particular edge.(i.e., for all incident edges
in the graph, if we found edge labelled undiscovered then,
adj_vertex(V,E) to visit adjacent node)
Step 4: If the connecting node is unvisited, then mark edge as
discovered and visit that node(i.e., setLabel(E,DISCOVERED)
and visit(W,GR))
Step 5: If the node is already visited then back track the
edge.(i.e., if(W.Label=visited) then setLabel(E,BACK))
Step 6: While checking with edge Label, if any undiscovered
edge cannot be found when moving forward, then back track
again until you reach initial node.
4.2.2 Blockchain
A blockchain database is distributed, shared, fault
tolerance and append only database that maintains the record in
5. blocks linked in a chronological order. Initial block in the chain
is known as genesis block.[17]
Currency in the Ethereum is generally denoted by the
term ETH and smallest unit of ETH is referred as WEI.one ETH
is equal to 1 billion GWEI(Giga-WEI) and one GWEI is equal
to 1 billion WEI.
EVM(Ethereum Virtual Machine) is a platform used
by miners for computational checksum while creating hash
function for a newly added block. Then the transaction
confirmed and added into block and also be removed from the
pool of unconfirmed transactions.
Finally, each and every transaction in the blocks
presented in the system blockchain will be executed again until
final state of EVM is obtained. This state matching process with
EVM when verified every time increases trust and security
while verification.
In the current project blockchain is used to store all the
user joining, referral as well as transactional data to make it
impossible to do artificial block collision by hackers and also to
make it visible publicly to build trust among users which is
primary aspect for any non-profits.
4.2.3Proof Of Work (POW) algorithm:
Miners after doing some logical and mathematical
computations to creates hash functions with the for the
transaction data provided with previous block hash function
present in the chain. Proof of work is an algorithm used to
confirm the transaction with the hash key provided and create a
new block in the chain to add the new transaction data.[16]
Fig.3: Proof Of Work overview
Step 1: Take the hash key of previous node in blockchain.
Step 2: Take the transaction data to be added in the chain as a
new block.
Step 3: Compute and calculate the logics to solve the puzzle to
get hash key for current block.
Step 4: Get the current block hash key verified by co-miners
and get the reward.
Step 5: Add new block to the blockchain with the help of current
calculated hash key.
4.3 Pseudocode for DFS
DFS(GR)
{
For all V∈GR.vertices
{
setLabel(V,UNVISITED);
#INITIALIZING ALL VERTICES AS UNVISITED
}
For all E∈GR.edges
{
setLabel(E,UNDISCOVERED);
#INITIALIZING ALL EDGES AS UNDISCOVERED
}
For all V∈GR.vertices
#CHOOSING A RANDOM VERTEX FROM GRAPH
{
If(V.label==UNVISITED)
#SEARCHING FOR ALL UNVISITED VERTICES IN
GRAPH(ALSO WORKS FOR DISCONNECTED GRAPH
NODES)
{
Visit(V,GR);
}
}
}
Visit(V,GR)
{
setLabel(V,VISITED)#SETTING CURRENT NODE TO
VISITED
for all E∈V.incident_edges
{
If(E.label==UNDISCOVERED)
{
W=adj_vertex(V,E);
#W BE THE VERTEX ADJACENT TO UNDISCOVERED
EDGE E
If(W.label==UNVISITED)
{
setLabel(E,DISCOVERED);
#SETTING CUREENT EDGE AS DISCOVERED
visit(W,GR);
}
If(W.label==VISITED)
#SETTING CURRENT EDGE AS A BACK EDGE
{
setLabel(E,BACK);
}
}
}
}
6. VI. STIMULATION AND ANALYSIS
Fig.4: survey statistics for significant growth of various
crowdfunding platforms in recent years
From the survey data collected from
rowdfunding.org;Massolution, comparatively donation based
and reward based crowd fundings had a rapid growth which
made together and implemented as a hybrid model in the
current system.
Fig.5: Time taken by POW vs POS vs DAG to generate a new
block
Fig.6: Individual analysis for time taken by POW and POS to
create a new block
Fig.7: Performance analysis-BFS vs DFS
Fig.8: Power Consumption-Crypto mining vs banking
Fig.9: Main webpage of the portal
All the modules of the portal can be accessed from this main
webpage.
7. Fig.10: User transaction details display page
Each and every user transaction information will be displayed
in this module along with the hash keys for each transaction
happened.
VII. CONCLUSION
Crowdfunding is a platform that not only provides financial
assistance, but also assists in the acquisition of manpower and
the development of community relationships. Moreover,
blockchain-based fundraising campaigns are correctly
implemented and make it easier for potential investors to find
key indications and drivers of noteworthy enterprises.
Furthermore, as Gloria Grottolo said, it could assist regulators
and market participants in understanding how the present
regulatory framework applies to blockchain-based
crowdfunding. Finally this portal is to bring change with respect
to donations and sponsorships in the current world.
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attention in academic, extant related literature mainly focuses
on creators’ behavior and strategies in crowdfunding stage. As
for factors influencing creators’ behavior, present studies
concern behavior of sponsors, social media, product category,
and reputation pursuit, etc. According to these influencing
factors, creators utilize strategies like crowdfunding period
design, information disclosure, interaction with sponsors etc. to
achieve the two-fold mission of crowdfunding, which includes
achieving the project target and maximizing the raising fund”
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https://doi.org/10.1109/ICSSSM.2017.7996207
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creators’ post-crowdfunding strategy receives far less attention.
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methodology-there is still a lack of analytical study in the
crowdfunding research field. Crowdfunding is a platform which
mediators and acts like organizers of Crowdfunding. At this
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great experimentation will take place only in the
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process even further.” In Blockchain-Based Crowdfunding
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[13] Gloria Grottolo, “blockchain-based fundraising initiatives
properly and facilitate potential investors to seek main signals
and drivers of outstanding projects. Furthermore, it could help
regulators and market participants to understand how the
existing regulatory framework applies to blockchain-based
crowdfunding” In Alternative Fundraising: Success Factors for
Blockchain-Based vs. Conventional Crowdfunding, Hangzhou,
China, 14 March 2019
https://doi.org/10.1109/IWBOSE.2019.8666515
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November 2020
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[15] Robert Tarjan “The value of depth-first search or
"backtracking" as a technique for solving graph problems is
illustrated by two examples. An algorithm for finding the
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improved version of an algorithm for finding the strongly
connected components of a directed graph “In Depth-first
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[16] Chandranshu Gupta “Once when a transaction is entered
& executed, never be modified or erased. Proof-of-Work (Pow)
consensus protocol is used for Ethereum which is the first use
case of blockchain as well as digital money” in Evaluation of
Proof-of-Work Consensus Algorithm for Blockchain Networks,
1-3 July 2020.
https://doi.org/10.1109/ICCCNT49239.2020.9225676
[17] Muhammad Nasir Mumtaz Bhutta “Ethereum uses
Blockchain as a way to solve the long-lasting problems of
double costs of digital cash and handing out of digital
transactions in a distributed way without the need of any
reliable third party” in A Survey on Blockchain Technology:
Evolution, Architecture and Security, 13 April 2021.
https://doi.org/10.1109/ACCESS.2021.3072849