Blockchain crowdfunding platform

Abstract

The present invention relates to a blockchain-based crowdfunding platform that leverages distributed ledger technology and smart contracts to automate and streamline the fundraising process. The platform enables creators to raise funds for projects in a decentralized, transparent, and secure environment. Smart contracts define the terms of the crowdfunding campaign, including the funding goal, timeline, and fund allocation rules. Investors contribute funds through cryptocurrency or digital tokens, which are securely stored in the smart contract until the predefined conditions are met. Once the campaign reaches its funding target, the funds are automatically released to the project creator. If the goal is not met, contributions are refunded to the investors. The platform provides enhanced transparency through a public blockchain, allowing real-time tracking of contributions and expenditures. Additionally, the system supports tokenized investments, where contributors can receive digital tokens representing ownership, profit-sharing, or exclusive rewards related to the funded project. The invention offers an efficient, cost-effective, and secure alternative to traditional crowdfunding methods, eliminating the need for intermediaries and reducing transaction fees.

Specification

Description:

Field of the Invention:
[001] The field of the invention pertains to blockchain technology applied to crowdfunding platforms, enabling decentralized, secure, and transparent fundraising mechanisms. Specifically, the invention leverages smart contracts to automate and govern the terms of crowdfunding campaigns, eliminating the need for traditional intermediaries and reducing transaction costs. By utilizing a distributed ledger system, the platform ensures all contributions and fund allocations are publicly recorded, immutable, and verifiable, enhancing trust and accountability among creators and investors. The invention aims to improve upon existing crowdfunding models by offering a more efficient, transparent, and accessible way for entrepreneurs and projects to raise capital, while also introducing innovative funding options through tokenization and digital assets.

Background of the invention and related prior art:
[002] The background of the invention lies in addressing the limitations and challenges faced by traditional crowdfunding platforms, which have become a popular means for entrepreneurs, creators, and innovators to raise capital. Despite their success, these platforms often suffer from issues such as centralization, high transaction fees, lack of transparency, and the potential for fraud. Centralized platforms rely on third-party intermediaries, which introduce delays, additional costs, and points of failure. Additionally, contributors often lack visibility into how funds are being used, leading to a lack of trust. The invention leverages blockchain technology to overcome these challenges by introducing a decentralized and transparent system that ensures security, immutability, and real-time tracking of contributions. Smart contracts automate and enforce the terms of the crowdfunding campaign, minimizing human intervention, and reducing the risk of fraud or mismanagement of funds. This innovation enhances the efficiency and trustworthiness of crowdfunding, making it more accessible to a global pool of investors and creators while enabling new funding models like tokenization.
[003] A patent document US20240078577A1 discloses that merchants provide incentives for customer transactions on accounts issued to them by issuers. Incentives include a merchant making a donation to entities with whom the merchants and/or the consumers have an affinity such as residence in the community. Each merchant can define the donation to be percentage of the transaction amount. Cryptographically secure chains are provided for uniquely labeling each such transaction and each such donation by way of incorporating role-based digital wallets and multiple synchronized transactional blockchains. Where the donations are used to purchase an Internet-of-Things (IOT) enabled system, real and/or near-real time usage information can be received and transmitted to the logical addresses of the customers and or the merchants so as to confirm efficacy of the donations.
[004] Another patent document CN106570757B provides a crowd funding method, a crowd funding device and a crowd funding system based on a block chain, wherein the crowd funding method comprises the following steps: receiving crowd funding information issued by a project party through a first crowd funding platform; writing the crowd funding information into a block link point corresponding to a first crowd funding platform in a block chain system; respectively synchronizing data in the block chain nodes corresponding to the first crowd-funding platform into each block chain node corresponding to at least one second crowd-funding platform in the block chain system; receiving crowd funding transaction information sent by the first crowd funding platform and the at least one second crowd funding platform; and writing the crowd-funding transaction information into block chain link points corresponding to crowd-funding platforms which send the information, and synchronizing data in the block chain nodes into block chain nodes corresponding to other crowd-funding platforms in the first crowd-funding platform and the at least one second crowd-funding platform. The device includes: receiving unit, memory cell and synchronization unit. The scheme can realize crowd funding across crowd funding platforms.
[005] A document CN102999529A relates to an information sharing system between platforms, comprising an interface module, a control module and a database, wherein the interface module is used for receiving information input by a user through a first platform or a second platform, pulling the information from the database and synchronizing the information to the second platform or the first platform; and the control module is used for controlling the interface module to receive and pull the information and controlling the database to store the information input by the user. In addition, the invention also provides an information sharing method between the platforms. The invention has the advantages that the information input by the use through the first platform or the second platform is received and stored and then the stored information is pulled and synchronized to the second platform or the first platform, so that the sharing of information between the two platforms is realized, the sharing of network resources is realized, and the utilization ratio of the network resources is increased; and a plurality of platforms share one database, so that the cost is reduced.
[006] Another document AU2016100394A4 discloses bringing the programs and platforms into the digital mining asset/commodity Blockchain replacing the fiat/cash component that is required to start a typical program. Digital mining assets/commodities with the option of having the Blockchain digital mining wallets installed at the top 50 banks and/or at the Bankcoin Reserve with the new digital mining commodities using Blockchain technology. We will use Bankcoin as the digital mining asset/commodity throughout this innovation filing (it could be any digital mining commodity) as we have already tested it to make sure this innovation can be duplicated and replicated by those who want to exploit it via a license agreement. We will also use the Bankcoin Reserve throughout this process as it is the number 1 Top AAA Rated Digital mining asset/commodity entity/authority able to facilitate between client and trader, block the use of the clients Bankcoins from the client as a requirement of the trader, allow trader access via a remote desktop connection application where traders can go through all aspects of the digital mining asset/commodity digital Bankcoin wallet and monitor its mining and balance in real time, and store/secure the clients digital mining assets/commodities in their digital wallet for the term of the agreement with the broker.
[007] A patent document CN105844505A discloses a method of carrying out digital currency trading through a block chain technology. The method is characterized in that personal and enterprise users carry out digital currency trading through a decentralized block chain technology; after the trading, electrical account information and various kinds of trading documents are generated; all the data records are stored at a node of a block chain; an enterprise, a law mechanism or a public security organ takes an information state from any one node to track and investigate a cash flow situation and stores the information permanently.
[008] None of these above patents, however alone or in combination, disclose the present invention. The invention consists of certain novel features and a combination of parts hereinafter fully described, illustrated in the accompanying drawings, and particularly pointed out in the appended claims, it being understood that various changes in the details may be made without departing from the spirit, or sacrificing any of the advantages of the present invention.

Summary of the invention:
[009] The invention is a blockchain-based crowdfunding platform that uses smart contracts and distributed ledger technology to enable secure, transparent, and decentralized fundraising. It addresses the limitations of traditional crowdfunding platforms, such as high fees, centralization, lack of transparency, and potential fraud. Through smart contracts, the platform automates the terms and conditions of fundraising campaigns, ensuring that funds are released only when predefined milestones are met, without the need for intermediaries. The blockchain's immutable nature provides real-time visibility into fund allocation, fostering trust and accountability between creators and investors. Additionally, the platform enables innovative funding models like tokenization, where digital tokens can represent ownership, access, or future profits. This solution opens up global access to funding while lowering costs, enhancing security, and creating new opportunities for both project creators and investors.
Detailed description of the invention with accompanying drawings:
[010] For the purpose of facilitating an understanding of the invention, there is illustrated in the accompanying drawing a preferred embodiment thereof, from an inspection of which, when considered in connection with the following description, the invention, its preparation, and many of its advantages should be readily understood and appreciated.
[011] The principal object of the invention is to develop Blockchain crowdfunding platform.
The Blockchain Crowdfunding Platform is an innovative system that harnesses the power of blockchain technology to transform traditional crowdfunding methods. It introduces a decentralized, transparent, and secure ecosystem for raising capital through smart contracts and a distributed ledger system, offering a more efficient and trustworthy alternative to conventional crowdfunding platforms.
Key Components of the Invention:
1. Blockchain Technology:
o The platform operates on a decentralized network powered by blockchain technology. This ensures that all transactions and data are securely recorded in an immutable ledger, making them transparent and tamper-proof. Each contribution made by an investor is publicly recorded on the blockchain, allowing anyone to verify the status of the campaign and how funds are being used. This transparency significantly reduces the risk of fraud and mismanagement, building trust between project creators and backers.
2. Smart Contracts:
o Smart contracts are self-executing, programmable agreements that automatically enforce the terms of a crowdfunding campaign. When a project creator sets up a campaign, they create a smart contract that outlines the specific conditions for fund collection and distribution. For example, the contract can specify that funds will only be released once a certain funding goal is met within a set timeframe. These contracts ensure that there is no need for intermediaries to manually verify or process the transaction, reducing delays and administrative costs.
o Additionally, if the fundraising goal is not met, the smart contract can automatically refund the contributions to the investors. This reduces uncertainty and ensures fairness.


3. Tokenization:
o One of the core innovations of the platform is its ability to tokenize ownership or rights to the project. Project creators can issue digital tokens representing various forms of value, such as equity, access to exclusive content, future profits, or voting rights in the project's direction. For example, a music artist could issue fan tokens that provide holders with access to exclusive behind-the-scenes content or merchandise discounts. These tokens could be tradable on secondary markets, potentially generating additional revenue for the project.
o Security Token Offerings (STOs) could also be implemented, where tokens represent real-world assets like shares in a company, real estate, or other tradable securities, enabling regulated fundraising through blockchain.
4. Decentralized Nature:
o Unlike traditional crowdfunding platforms that rely on centralized entities (such as banks or third-party processors), the blockchain platform is fully decentralized. There are no intermediaries between creators and investors, allowing funds to be sent directly from the investor to the project. This reduces costs associated with middlemen and enables a more direct, peer-to-peer interaction between backers and creators.
o This decentralization also opens up access to a global audience. Investors from anywhere in the world can contribute to campaigns, without the restrictions imposed by geographic or regulatory boundaries.
5. Transparency and Security:
o The distributed ledger guarantees transparency, as all transactions and activities related to the project are visible on the blockchain. This means investors can track how their funds are being spent and verify that the project is progressing as planned. The immutable nature of blockchain ensures that once a transaction is recorded, it cannot be altered or deleted, reducing the risk of fraud and ensuring a higher level of security for both creators and backers.
o Blockchain also ensures that funds are protected by cryptographic protocols, making them secure from hacking or unauthorized access.
6. Global Accessibility:
o The platform eliminates geographical barriers that often hinder traditional crowdfunding campaigns. Because blockchain is decentralized and operates over a global network, project creators from anywhere can tap into a global pool of potential investors. This increases the reach of crowdfunding campaigns and provides creators access to capital from diverse international sources, overcoming the limitations of local regulations or payment systems.
7. Investor Interaction:
o Investors can engage directly with creators through the platform, contributing funds via cryptocurrency or project-specific tokens. They can monitor the progress of campaigns in real-time, view detailed financial records, and make informed decisions based on transparent data. This direct interaction with project creators fosters a deeper sense of involvement and trust, as investors can ensure their contributions are being used as promised.
Process Flow:
1. Project Creation:
o The process begins when a project creator submits a project description, outlines funding goals, and specifies the terms of the campaign, including the use of tokens, funding milestones, and smart contract conditions. The creator then deploys a smart contract on the blockchain to govern the campaign.
2. Investor Participation:
o Investors browse the platform to find projects they wish to support. Using a crypto wallet, they connect to the platform and contribute funds (either cryptocurrency or project-specific tokens) according to the terms set in the smart contract.
3. Transaction Recording:
o Each investor's contribution is recorded on the blockchain, ensuring the transaction is transparent and verifiable. The funds are held securely within the smart contract until the campaign reaches its funding goal or specific milestone.
4. Goal Achievement:
o If the fundraising goal is met within the campaign's timeline, the smart contract automatically releases the funds to the project creator. If the goal is not met, the smart contract will return the funds to the investors as per the predefined rules set in the contract.
5. Post-Funding:
o Once the project is funded, the project creator can use the funds as specified in the smart contract. Progress updates can be shared with investors, and if tokens were issued, these are distributed to backers based on their contributions. Additionally, tokens may be traded on secondary markets, potentially providing further funding opportunities for the project.
[012] The Blockchain Crowdfunding Platform represents a significant evolution in the way projects raise capital. By combining decentralization, smart contracts, and tokenization, it offers a more secure, transparent, and cost-effective alternative to traditional crowdfunding models. With its focus on innovation, transparency, and global accessibility, the platform holds the potential to reshape the crowdfunding landscape, empowering creators and investors alike.
Figure 1. Overall circuit diagram according to the embodiment of the present invention.
Figure 2. Website front page according to the embodiment of the present invention.
Figure 3. Dashboard Of the website according to the embodiment of the present invention.
Figure 4. Payment gateway according to the embodiment of the present invention.
Figure 5. Fake documents identification website according to the embodiment of the present invention.
Figure 6. Add product in the website according to the embodiment of the present invention.
Figure 7. Add seller according to the embodiment of the present invention.
Figure 8. Sell product to seller according to the embodiment of the present invention.
Figure 9. Query sellers according to the embodiment of the present invention.
Figure 10. Verify products according to the embodiment of the present invention.
[013] Without further elaboration, the foregoing will so fully illustrate my invention, that others may, by applying current of future knowledge, readily adapt the same for use under various conditions of service. It should also be realized by those skilled in the art that such equivalent constructions do not depart from the spirit and scope of the invention.
Advantages over the prior art
[014] Blockchain crowdfunding platform proposed by the present invention has the following advantages over the prior art:
1. Increased Transparency
• Every transaction on the platform is recorded on the blockchain, which is publicly accessible and immutable. This ensures full transparency regarding how funds are raised and spent. Investors can track their contributions in real-time, and project creators are held accountable for how funds are utilized.
2. Reduced Transaction Fees
• By eliminating intermediaries such as banks or payment processors, the platform reduces transaction fees typically associated with crowdfunding platforms. Blockchain-based crowdfunding ensures that more of the funds raised go directly to the creators, rather than being consumed by high processing fees.

3. Security and Fraud Prevention
• Blockchain's cryptographic nature ensures that transactions are secure and tamper-proof. Once a transaction is recorded on the blockchain, it cannot be altered or deleted, significantly reducing the risk of fraud or data manipulation. The use of smart contracts further ensures that funds are only released when predefined conditions are met, preventing mismanagement.
4. Automation and Efficiency
• Smart contracts automate the process of managing campaigns. Once a campaign's goal is reached, the smart contract automatically releases the funds to the project creator, without requiring human intervention. This removes the need for manual oversight, reducing administrative costs and time delays.
5. Global Accessibility
• Blockchain operates on a decentralized, global network, removing geographical barriers that often limit traditional crowdfunding platforms. This means project creators can access a global pool of investors, and investors can support projects from anywhere in the world, enhancing the scope and reach of the campaigns.
6. Trust and Accountability
• The decentralized nature of the blockchain platform ensures that no single party controls the system, increasing trust among investors and creators. All transactions are visible and verifiable, so backers can confirm how their contributions are being used, fostering greater confidence in the project's integrity.
7. Innovative Funding Models
• The platform allows for the tokenization of assets, enabling creators to issue digital tokens that represent ownership, profit-sharing, or access to exclusive content. This creates new ways for investors to benefit from their involvement in a project, such as by holding tokens that can be traded on secondary markets or offering rewards like exclusive merchandise or voting rights.
8. Elimination of Intermediaries
• Traditional crowdfunding platforms rely on centralized intermediaries (such as banks, payment processors, or platform operators) to facilitate transactions. Blockchain crowdfunding eliminates the need for these intermediaries, enabling a peer-to-peer (P2P) model where project creators and investors can interact directly. This reduction in intermediaries lowers costs, increases efficiency, and accelerates the fundraising process.

9. Improved Investor Protection
• The smart contract system protects investors by ensuring funds are only released when the conditions of the agreement are met (e.g., when the funding goal is achieved). Additionally, in cases where the funding goal is not met, funds can be automatically returned to investors, reducing the risk of unfulfilled projects or fraud.
10. Fractional Ownership and Liquidity
• Through tokenization, project creators can offer fractional ownership or equity in their project, allowing smaller investors to participate in high-value projects. These tokens can also be traded on secondary markets, providing liquidity for investors who may want to sell their stake or access profits before the project's completion.
11. Increased Trust Through Immutable Recordkeeping
• Blockchain's immutable ledger ensures that once a transaction is recorded, it cannot be altered. This level of immutability strengthens the overall trust in the platform, as both creators and investors can be confident that the project's financial records and funding history are accurate and transparent.
12. Faster and More Efficient Fundraising Process
• The use of blockchain and smart contracts streamlines the entire fundraising process, reducing the need for manual processing and approval stages. The automated release of funds upon achieving milestones allows for a much faster and more efficient crowdfunding process compared to traditional platforms.
13. Customizable Campaigns
• Project creators have more flexibility in structuring their campaigns. They can customize the terms of the smart contract, decide how funds will be used, determine token-based incentives, and set unique milestones and goals. This level of customization ensures that the platform can accommodate a wide range of projects, from creative ventures to business startups.
14. No Single Point of Failure
• Since the platform is decentralized, there is no central authority or single point of failure. Even if one part of the system encounters issues, the overall operation of the platform remains intact. This increases the resilience and reliability of the system.
15. Legal and Regulatory Compliance (with STOs)
• Blockchain crowdfunding platforms can support Security Token Offerings (STOs), a regulated form of tokenized securities. STOs allow creators to raise capital in compliance with existing financial regulations, ensuring that the platform adheres to legal requirements while offering investors more protection and confidence.
[015] In the preceding specification, the invention has been described with reference to specific exemplary embodiments thereof. It will be evident that various modifications and changes may be made thereunto without departing from the broader spirit and scope of the invention as set forth in the claims that follow. The specification and drawings are accordingly to be regarded in an illustrative rather than restrictive sense. Therefore, the aim in the appended claims is to cover all such changes and modifications as fall within the true spirit and scope of the invention. The matter set forth in the foregoing description and accompanying drawings is offered by way of illustration only and not as a limitation. The actual scope of the invention is intended to be defined in the following claims when viewed in their proper perspective based on the prior art.


, Claims:We claim:
1. Blockchain crowdfunding platform comprising of:
• a distributed ledger configured to record contributions made by investors to a crowdfunding campaign;
• at least one smart contract deployed on said distributed ledger, wherein the smart contract defines the terms, conditions, and fundraising goal for the crowdfunding campaign;
• a user interface for displaying project information and allowing investors to contribute funds to the crowdfunding campaign;
• a cryptocurrency wallet interface for securely storing and managing contributions from investors.
2. A method for conducting crowdfunding on a blockchain platform, comprising the steps of:
• receiving a funding contribution from an investor via a cryptocurrency wallet;
• recording the funding contribution in a smart contract deployed on a distributed ledger;
• releasing the contributed funds to a project creator when a predefined fundraising goal is met, as specified by the smart contract.
3. A method for automatically allocating funds in a blockchain-based crowdfunding platform, comprising:
• receiving one or more contributions from investors via a decentralized cryptocurrency wallet;
• storing said contributions in a smart contract deployed on a blockchain;
• automatically releasing funds to the project creator once the campaign has reached its defined fundraising goal, as set in the smart contract.
4. The method of claim 3, wherein the contribution is represented by a digital token issued to the investor, and the token represents an ownership stake or future profit share in the crowdfunding project.
5. A method for refunding investors in a blockchain-based crowdfunding platform, comprising:
• receiving funding contributions from investors via a smart contract;
• defining a fundraising goal and deadline within the smart contract;
• returning contributions to investors automatically if the campaign does not meet the fundraising goal within the set deadline.
6. The system of claim 1, wherein the distributed ledger is a public blockchain that records all contributions, transactions, and fund allocations, making all activities associated with the crowdfunding campaign transparent and auditable by investors.
7. A system for decentralized governance of a blockchain-based crowdfunding platform, comprising:
• a Decentralized Autonomous Organization (DAO) that allows investors to vote on key decisions of the crowdfunding campaign, including fund allocation and project milestones;
• a smart contract configured to automatically execute the decisions made by the DAO, ensuring adherence to the governance rules encoded on the blockchain.
8. The system of claim 1, wherein the platform is configured to accept multiple cryptocurrencies from investors, and automatically converts the contributions to a primary cryptocurrency used by the crowdfunding campaign.
9. A method for incentivizing investor participation in a blockchain-based crowdfunding campaign, comprising:
• issuing tokens to investors upon making contributions to the campaign;
• providing investors with exclusive rewards based on token holdings, the rewards including early access to products, voting rights, or future profit-sharing rights.
10. A decentralized crowdfunding platform for directly connecting creators and investors without intermediaries, comprising:
• a peer-to-peer network on a blockchain that facilitates direct interactions between crowdfunding project creators and investors;
• a smart contract deployed on the blockchain to automate the collection, distribution, and management of contributions;
• a cryptocurrency wallet interface for securely processing and storing investor funds.

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