SmartLend - A Decentralized Crowdfunding Platform
Team Name: metanova
Introduction:
Our project aims to revolutionize the way crowdfunding and microloans are conducted by leveraging decentralized finance (DeFi) and blockchain technology. The Decentralized Crowdfunding Platform (DCP) will empower users to create and participate in transparent, secure, and trustless crowdfunding campaigns, removing the need for intermediaries and reducing the risk of fraud.
Problem Statement:
Traditional crowdfunding and loan platforms often involve intermediaries, high fees, and a lack of transparency. Additionally, the risk of fraud and mismanagement of funds is a significant concern for contributors. There is a need for a solution that ensures funds are used as intended and that contributors have control over their investments.
Solution:
The Decentralized Crowdfunding Platform (DCP) provides a secure and transparent way for users to create, manage, and participate in crowdfunding campaigns directly on the blockchain. Key features include:
1. Campaign Creation:
- Users can create public or private crowdfunding campaigns for various purposes, such as startups, personal loans, or charitable donations.
- Campaigners provide detailed information about their projects, including the amount needed, the purpose, and the interest rates for contributors.
2. Contribution Mechanism:
- Public campaigns are open to all users for contributions, while private campaigns are restricted to specific individuals chosen by the campaigner.
- Contributions are made directly through MetaMask, ensuring a seamless and secure transaction process.
3. Escrow System:
- Funds raised in a campaign are held in a smart contract escrow until certain conditions are met.
- Campaigners must submit a purchase request to buy from vendors. These requests are then reviewed and approved by a specified number of contributors.
- Once approved, the smart contract transfers the necessary funds directly to the vendor, ensuring that the campaigner cannot misuse the funds.
4. Transparency and Security:
- All transactions and campaign details are recorded on the blockchain, providing complete transparency and auditability.
- The decentralized nature of the platform eliminates the need for a central authority, reducing fees and increasing trust.
Prototype Workflow:
1. User Interface:
- Campaigners access the platform via a web interface and connect their MetaMask wallet.
- They create a campaign by filling out a form with all necessary details, including the funding goal, campaign duration, and interest rates.
2. Campaign Management:
- Once a campaign is created, it is visible on the platform for potential contributors to review and contribute to.
- For private campaigns, only invited contributors can view and contribute.
3. Contribution and Fund Management:
- Contributors can use their MetaMask wallet to contribute to campaigns.
- Funds are locked in a smart contract escrow, ensuring they cannot be withdrawn by the campaigner without approval.
4. Request and Approval Process:
- Campaigners submit purchase requests to the platform, specifying the amount and the vendor.
- Contributors review and vote on the request. Once the required number of approvals is met, the smart contract automatically transfers the funds to the vendor.
5. Completion and Payout:
- After the campaign ends, interest payments are automatically distributed to contributors based on the terms set at the beginning of the campaign.
Impact:
The Decentralized Crowdfunding Platform (DCP) will democratize access to funding, reduce the risk of fraud, and increase transparency in crowdfunding and microloan transactions. By leveraging blockchain technology, we provide a trustfull environment where funds are securely managed, and contributors have a say in how their investments are used.
