A Blockchain-Based Decentralized System For Secure, Transparent, and Fraud-Resistant Crowdfunding

Ratnesh Kumar Choudhary*
Periodicity:October - December'2025

Abstract

Crowdfunding is a widely used method to raise funds for startups, social initiatives, and creative projects by collecting small contributions from a large number of people. Despite its popularity, traditional crowdfunding platforms suffer from issues such as high transaction fees, fraud risks, limited transparency, and lack of investor control. Blockchain technology offers a promising alternative by enabling secure, transparent, and decentralized management of funds without relying on intermediaries. This paper explores how blockchain can transform crowdfunding by improving trust, accountability, and efficiency. To address fraud-related challenges, the SMOTE Borderline technique is introduced as a machine learning method to balance datasets and improve the accuracy of fraud detection. The study also highlights ongoing issues such as scalability, regulatory uncertainties, and smart contract vulnerabilities, while pointing toward the future development of secure decentralized crowdfunding systems.

Keywords

Blockchain, Crowdfunding, Smart Contracts, Transparency, Security, Decentralization, SMOTE Borderline.

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