Crowdfunding is a way of obtaining funding for a business or project by collecting small investments from a large number of people, rather than relying on traditional financial institutions such as banks and stockbrokers. This method of fundraising uses online platforms, like Kickstarter and Indiegogo, to reach out to a large number of potential investors, who can contribute in exchange for rewards or equity in the business. The investors in this case are referred to as the crowd. Crowdfunding can be applied in any area but it is best suited for an innovative or creative idea because it is very difficult to garner funds through traditional funding methods for an innovative idea, as it involves high risk of investment. Participants of crowdfunding directly engaged as a fundraiser, investors and crowdfunding platform. Categories of crowdfunding based on rewards or compensation type are reward-based crowdfunding, equity-based crowdfunding, debt-based crowdfunding, donation or charity-based crowdfunding. Our aim is to find best technology adoption for the crowdfunding and management strategies to attract more crowd to crowdfunding i.e. generate people’s trust. More the people trust, the higher the chances of obtaining the funding goal of a project campaign. Objective of this review is to identify the most effective technology and management techniques for crowdfunding with the intent of expanding participation and gaining trust from the public.
There is an increasing demand for a secure and trustworthy environment, free of fraud, among those who contribute to crowdfunding campaigns. The centralization of authority in the present crowdfunding system is a major disadvantage, as it results in a lack of transparency, undermines trust, and makes it susceptible to malicious activities. Transparency is what investors desire so that they can follow the usage of their funds. A solution for this is offered by blockchain-based crowdfunding platforms, which provide a transparent, secure, trustworthy, and decentralized alternative to traditional crowdfunding methods. Blockchain-based smart contracts facilitate greater participation from a larger number of individuals, eliminating the need for human intervention. The prevalent system faces the challenge of high maintenance and platform fees. Utilizing blockchain-based smart contracts to introduce transparency can mitigate these fees, resulting in a boost in donor trust and improved chances of success in a crowdfunding endeavor.

Crowdfunding is a way of obtaining funding for a business or project by collecting small investments from a large number of people, rather than relying on traditional financial institutions such as banks and stockbrokers. This method of fundraising uses online platforms, like Kickstarter and Indiegogo, to reach out to a large number of potential investors, who can contribute in exchange for rewards or equity in the business. The investors in this case are referred to as the crowd. Crowdfunding can be applied in any area but it is best suited for an innovative or creative idea because it is very difficult to garner funds through traditional funding methods for an innovative idea, as it involves high risk of investment. Participants of crowdfunding directly engaged as a fundraiser, investors and crowdfunding platform. Categories of crowdfunding based on rewards or compensation type are reward-based crowdfunding, equity-based crowdfunding, debt-based crowdfunding, donation or charity-based crowdfunding. Our aim is to find best technology adoption for the crowdfunding and management strategies to attract more crowd to crowdfunding i.e. generate people’s trust. More the people trust, the higher the chances of obtaining the funding goal of a project campaign. Objective of this review is to identify the most effective technology and management techniques for crowdfunding with the intent of expanding participation and gaining trust from the public.
There is an increasing demand for a secure and trustworthy environment, free of fraud, among those who contribute to crowdfunding campaigns. The centralization of authority in the present crowdfunding system is a major disadvantage, as it results in a lack of transparency, undermines trust, and makes it susceptible to malicious activities. Transparency is what investors desire so that they can follow the usage of their funds. A solution for this is offered by blockchain-based crowdfunding platforms, which provide a transparent, secure, trustworthy, and decentralized alternative to traditional crowdfunding methods. Blockchain-based smart contracts facilitate greater participation from a larger number of individuals, eliminating the need for human intervention. The prevalent system faces the challenge of high maintenance and platform fees. Utilizing blockchain-based smart contracts to introduce transparency can mitigate these fees, resulting in a boost in donor trust and improved chances of success in a crowdfunding endeavor.

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