Block Diagram of the Smart Contracts in Crowd Funding Work

Inspiration

Problem: Crowdfunding is a practice where a venture or project gets funded by raising a small amount of money from a large number of people. Usually, such practices take place through the internet, and all transactions happen online. Although a great practice, it has few challenges like a scam and no control of contributors over the money invested by them.

Solution: Reaching your Goal is the solution to overcoming all the problems faced by contributors in Crowdfunding.

Smart Contracts - It is a Blockchain-based crowdfunding platform that makes use of the Ethereum blockchain, a decentralized platform that deploys contracts as smart contracts on Blockchain. With Reach Your Goal, the contributors have complete control of the money invested by them.

What it does

Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary's involvement or time loss.

Smart contracts in crowdfunding aim to solve three major problems – ease up KYC/AML verification, eliminate dependency on third parties such as banks due and speed up pay-in and pay-out transactions in the crowdfunding offerings.

Smart contracts refer to computer protocols that digitally facilitate an agreement's verification, control, or execution. Smart contracts run on the blockchain platform, which will process all the transactions in a contract; hence, middlemen are not required for executing the transactions.

How we built it

Technically, integrating smart contracts in a crowdfunding platform is done via different service providers such as Polymath, and TokenD, directly with Ethereum, or other solutions.

The platform connects different owners of loyalty programs and makes the points they distribute the interoperability. One can also share scalable infrastructure between brands from different sectors.

The model for loyalty programs enhances the value of points to users and brings in new value to the involved brands by creating trusted transactions.

Challenges we ran into

The smart contract requires heavy standardization Elimination of optimal flexibility
All the deals have to be conducted within 1 framework Smart contracts may also be limiting. Low redeem rate of earned loyalty points by Customer. Long collection time.

Accomplishments that we're proud of

It is a self-executing agreement between investor and fundraiser The participants have the same information at the same time The project minimizes possible manipulation of the clauses of the contract Automatic updates are encourages Cost reduction, speed, and autonomy are ensured. The donor has full control of the money. Less money to the middleman Enforcing funding terms increases accountability.

What we learned:

Different crowdfunding platforms describe various advantages of using smart contracts for crowdfunding process optimization.
Higher speed of transactions or the identity verification checks
Better liquidity for previously illiquid assets via asset tokenization
Enhanced security comes from a larger “secure blockchain” concept
Faster funds disbursement – however at the cost of skipping the verification, according to this white-paper

A Smart Contract aims to provide additional security while making a transaction and reduce any unnecessary or surplus transactions. Smart Contract- based Crowdfunding and Reward platforms both have successfully harnessed smart Contracts and offer a reasonable solution to the users.