Implementation of Blockchain Technology to Improving Transparency on Fundraising System

Abstract

Various crowdfunding platforms offer numerous benefits, but transparency remains a major challenge within these systems. This issue has led to a decline in public trust, as donations are often misused or diverted from their original purpose. Blockchain technology, known for its transparency, offers a potential solution to this problem. This study aims to enhance transparency in crowdfunding systems by leveraging Blockchain technology. The implementation involves using tools and technologies to develop decentralized applications (DApps), such as thirdweb, Hardhat, and Metamask. In developing the DApp, data were collected through a literature review of theories and concepts related to Blockchain. Based on the gathered data, a Smart Contract was designed to serve as the structure for data management and functionalities for the crowdfunding system. Hardhat utilized a development tool to deploy the Smart Contract, while the thirdweb Software Development Kit (SDK) was employed to connect to the Blockchain. This study uses the Ethereum testnet to interact with and conduct transactions on the decentralized crowdfunding application. Metamask, a popular crypto wallet for DApps, was chosen as the exclusive wallet for the application due to its ease of use and widespread adoption. Analysis of the tests conducted shows that the application functions well under various operational scenarios, providing an intuitive and responsive interface while maintaining security. The results of this study demonstrate that the implementation of Blockchain technology in crowdfunding systems can significantly improve transparency, with immutable transaction records, public access to transaction histories, the use of Smart Contracts, and decentralized system operations.