Blockchain is of paramount importance as it facilitates users to own digital goods, assets, and data. It is a global distributed digital ledger that ensures transparency for all stakeholders within the network besides being a trusted and reliable technology. Both the ideas, Smart Contract-Based Crowdfunding, and Rewards platform, have harnessed the power of Blockchain in addition to using smart contracts.
A Smart Contract is an option contract between two or more parties written as a code in Blockchain. The individuals involved are anonymous, but the ledger is the public ledger. The Contract executes itself according to the coded terms when there is a triggering event like an expiration date. Regulators can use the Blockchain to understand the activity in the market while maintaining the privacy of individual actors’ positions. It is entirely autonomous and increases transparency, security, accuracy, speed, efficiency while keeping the transaction cost low.
Smart Contracts based CrowdFunding: Crowdfunding is a practice where a venture or project gets funded by raising a small amount of money from a large number of people. Usually, such practices take place through the internet, and all transactions happen online. Although a great practice, it has few challenges like a scam and no control of contributors over the money invested by them.
Reach your Goal is the solution to overcome all the problems faced by contributors in Crowdfunding. It is a Blockchain-based crowdfunding platform that makes use of ethereum blockchain, a decentralized platform that deploys contracts as smart contracts on Blockchain. With Reach Your Goal, the contributors have complete control of the money invested by them.
How it works: Reach Your Goal deploys a campaign on the ethereum network as a smart contract.
As per the Contract, the campaign’s funds get released when more than 50% of the contributors approve a withdrawal request. The vendor who has rendered the goods or service only gets the fund and no one else in the entire chain.
The most significant benefit of the platform is the increased level of visibility into a project that helps all parties involved, including the creators, backers, and platform administrators.
- The donor has full control of the money.
- Less money to the middleman
- Enforcing funding terms increases accountability.
Reward Platform: (Blockchain-Based Issue of Customer Loyalty Points)
Rewards Platform is a Blockchain-based solution for keeping track of customer reward points, creating a shared transaction ledger between all involved brands.
Problems with the current reward platforms: The considerable cost incurred in establishing, operating, and securing loyalty points programs. Generally, a joint loyalty program requires establishing the B2B communications needed to maintain the accounting aspect of the loyalty points, where each party has to audit transactions and secure data from fraudulent attacks.
- Low redeem rate of earned loyalty points by Customer.
- Long collection time.
How it works:
- The platform connects different owners of loyalty programs and makes the points they distribute interoperable.
- Shares scalable infrastructure between brands from different sectors.
- The model for loyalty programs enhances the value of points to users and brings in new value to the involved brands by creating trusted transactions.
- A frictionless system from a user perspective
- Make the process near real-time.
- Make each transaction and its record easily traceable.
Conclusion: A Smart Contract aims to provide additional security while making a transaction and reduce any unnecessary or surplus transaction. Smart Contract based Crowdfunding and Reward platform both have successfully harnessed smart Contracts and offer a reasonable solution to the users.
Watch the demo where two Brands, Juicekart and Shoekart shows the interoperability of loyalty points and how the customers can redeem.