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Leveraging the Shared Ledger to Ensure Validation Points of a Process

IP.com Disclosure Number: IPCOM000249448D
Publication Date: 2017-Feb-27
Document File: 2 page(s) / 52K

Publishing Venue

The IP.com Prior Art Database

Abstract

Disclosed is a tool to prevent abusive situations encountered in crowdfunding endeavors by validating the developer’s work. The tool utilizes blockchain and provides a method for developers to execute trusted tests and deliver the results to investors.

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Leveraging the Shared Ledger to Ensure Validation Points of a Process

Crowdsourced funding is quickly becoming a common method of raising money for new products and personal endeavors. The majority of developers has genuine goals of creating the advertised deliverable, and as such go forth to pitch to crowdfunding sources to gain funding to accomplish the developer's goal. The expected results from crowdfunding are that the developer successfully meets the desired goal, and then rewards the investors via the agreed-upon incentives. The system, however, is rife for abuse.

Requiring customers to be investors has led to many cases of unmet expectations. People can abuse investors’ trust and use the crowdfunding model to facilitate fraudulent agreements. The abusers falsify reports of success, never deliver on promises, and the investors lose money.

While no amount of technology can stop people from abusing the system, this article proposes a new system that allows greater transparency for honest developers and helps build investor confidence.

The novel contribution is a tool to prevent abusive situations encountered in crowdfunding endeavors. The tool provides a method for developers to execute trusted tests and deliver the results to investors. This generates confidence for the investors that the project can be accomplished. Introducing this tooling to a crowdfunding campaign generates a record of accountability for quality control, progress, and transparency with investors.

The core novel feature is a mechanism that uses a blockchain to implement a trusted and verified test in a crowdsourcing model. The tests take place on a trusted system, with a known set of data, and feed into a blockchain. The mechanism makes the tests available to all investors as a means of reviewing and evaluating the viability of the developer's progress. This can aid uncertain investors who wish to fund a project, but want a clear method to maintain contact with the developer and receive assurance that the project is properly attended. This provides evidence that the developer is confident in the project, aims to provide accurate results, and can stand a reliable figure that investors can trust. The blockchain can aid as a trusted source; it is unalterable and can deliver to investors an accurate account of the developer's actions.

Crowdfunded campaigns and smaller businesses can use this mechanism to prove and validate the organization’s identity and reputation to customers, financial institutions, and other businesses. It can also provide evidence, in real-time, of the product’s value. This mechanism implements a...