Blockchain applications in crowdfunding
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Wealth creation
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Fund distribution
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Campaign transparency
Use case 1. Wealth creation for low-income regions
Currently
Most low-income regions, particularly those in Africa, don’t have access to credit systems, and their residents don’t have bank accounts. Lack of proper financing leaves them in dire straits.
With blockchain
Blockchain-enabled digital assets remove crowdfunding barriers between war-torn, impoverished areas and modern means of financing with direct, p2p money transfers (of course, internet connection is required).
Use case 2. More rational fund distribution
Currently
With an excessive number of crowdfunding consulting firms and platforms, each requiring fees, the ultimately raised amount is far less than the one you initially planned to collect.
With blockchain
Smart contracts exclude middlemen, making such services as recommending the appropriate crowdfunding platform and fundraising itself autonomous and less price.
Use case 3. Establishing campaign transparency
Currently
Crowdfunding campaigns remain shady procedures, where insufficient record-keeping makes room for fraud during fundraising and failed donors’ expectations as a result.
With blockchain
Blockchain-enabled ledger keeps a comprehensive and permanent record of all fundraising activities throughout the entire campaign, ensuring accurate and consistent record keeping.