The Applications of Blockchain Technology in Crowdfunding Contract

Abstract

At present, Crowdfunding source of raising funds typically for business startups has gained much primacy with most businesses resorting to the use of Crowdfunding platforms to raise funds because it is relatively inexpensive and uncomplicated in nature. The call for a solution to issues related to security, investor abuse and, illegal transactions that could plague crowdfunding contracts is the spurred this paper. Using existing literature on Crowdfunding and blockchain technology, we put forward a conceptual framework that can provide the solution to the problems related to Crowdfunding contracts through the use of blockchain technology. Taking into account the role of the intermediary platforms, we examine how the foundational qualities of the blockchain technology may resolve the problems of these platforms. We discuss how blockchain technology can effectively and securely handle the relationship between fundraisers, platforms and the investors. We anticipate that our paper will drive the attention of researchers to delve into blockchain technology in Crowdfunding contracts practicality.