Blockchain Based Farmer’s Fund Distribution System

Abstract

In the contemporary landscape, the agricultural sector grapples with a host of real-time problems stemming from outdated fund distribution methodologies. The existing systems exhibit a lamentable lack of efficiency, transparency, and accountability, exacerbating the hardships endured by farmers, students, and entrepreneurs seeking essential financial support. This predicament, with its associated bottlenecks and corruption vulnerabilities, obstructs the timely allocation of funds, hindering not only the progress of individual beneficiaries but also the overall socioeconomic development of the region. In response to these pressing issues, our project emerges as a beacon of hope and transformation. By harnessing the disruptive potential of blockchain technology, we endeavour to revolutionize the fund distribution process, offering a panacea for these systemic challenges. Our multifaceted solution encompasses a user-friendly mobile application tailored for farmers, real-time dashboards that provide government authorities with transparent oversight, and an immutable blockchain ledger that indelibly records every transaction. These technological innovations coalesce to forge a system that not only empowers beneficiaries by affording them unfettered access to critical financial support but also paves the path to a progressive future. The project\'s significance extends far beyond fund distribution; it stands as a herald of governmental service modernization, data management reform, and financial inclusivity. By directly addressing these persistent and dynamic challenges, we endeavour to elevate the agricultural sector and, in turn, the entire socioeconomic landscape, all while setting a standard for transparent governance and equitable development.

Introduction

I. INTRODUCTION

In the current landscape, the agricultural sector faces a multitude of real-time problems that are symptomatic of the inadequacies in traditional fund distribution systems. These issues, rooted in inefficiency, corruption, and a conspicuous lack of transparency, are exacting a heavy toll on the livelihoods of farmers, the educational aspirations of students, and the entrepreneurial dreams of aspiring businesspeople. The result is an intricate web of delays and obstacles that stand as formidable barriers to progress in the agricultural sector, undermining not only the economic prosperity of those directly impacted but also the broader regional development goals. Amid this backdrop of systemic challenges, our project emerges as a beacon of innovation and a catalyst for change. We are poised to harness the transformational power of blockchain technology to revolutionize the fund distribution process, transcending the confines of the traditional and ushering in an era of efficient, transparent, and accountable financial support.

At the heart of this endeavour lies a mobile application, designed with utmost user-friendliness in mind, tailor-made for the very bedrock of agriculture: the farmers. This application opens the gateway to secure registration and meticulous data management, placing control firmly in the hands of those whose livelihoods depend on it. Furthermore, we have architected a set of real-time dashboards, intricately crafted for the discerning eyes of government authorities, where oversight meets transparency, enabling an incisive view of fund distribution, ensuring equitable, efficient, and responsible allocation.

Yet, the true hallmark of our project is the implementation of blockchain technology, an immutable ledger that records transactions with an indelible permanence. This innovation, it is here we conquer the spectre of fraud, corruption, and manipulation. Every transaction, every allocation, is etched into this secure framework, rendering malfeasance near impossible and fostering the highest degree of accountability.

However, our project isn't merely confined to the realm of fund distribution; it aspires to serve as a vanguard for governmental service modernization, data management reform, and financial inclusivity. Beyond the facilitation of efficient fund allocation, it endeavors to set a precedent for transparent governance, the modernization of data management, and the promotion of financial inclusion.

II. LITERATURE REVIEW

1. Megha Rani R et al [5] This paper presents a comprehensive exploration in their paper, focusing on the implementation of a blockchain-based system to track and allocate funds within the agricultural sector in India. Recognizing the persistent challenges faced by the government in efficiently delivering agricultural subsidies, the authors aim to establish a transparent and accountable environment through the integration of blockchain technology. The primary objective is to combat corruption and inefficiencies that currently plague the fund allocation system. The paper begins by acknowledging the imperative need for a secure and authentic fund allocation and tracking system. By leveraging blockchain technology, the authors aspire to create a system that not only addresses these challenges but also ensures transparency and accountability in the allocation of funds within the agricultural sector. The emphasis is on mitigating corruption, a critical issue that hinders the effective distribution of subsidies and funds. A thorough examination of existing research and related work in the field is presented, shedding light on the growing interest in utilizing blockchain technology within the government sector to enhance transparency and eliminate corruption. The survey of relevant papers provides insights into the potential of blockchain in transforming the current fund allocation landscape. The proposed system is implemented using the Ethereum blockchain and the Truffle framework. This choice of technology underscores the authors' commitment to creating a robust and effective solution. The system facilitates secure cryptocurrency transfers specifically designed for agricultural fund allocation. By incorporating blockchain, the authors aim to streamline the process and enable direct transactions between beneficiaries and donors, thereby ensuring transparency and maintaining an immutable ledger. The paper concludes by highlighting the substantial improvements that blockchain technology can bring to the agricultural fund allocation process. It asserts that blockchain has the potential to eliminate corruption, enhance security, and create a transparent and efficient system. The acknowledgment of the technology's potential impact on the overall growth and economy of a country underscores the significance of integrating blockchain in addressing critical challenges within the agricultural sector. In essence, the paper provides a valuable contribution to the discourse on leveraging blockchain for improving fund allocation in the agricultural domain.
2. Naga Venkata Mohit Desabathina et al [4] In this paper, focusing on the intersection of agricultural crowdfunding and blockchain technology to tackle the pressing financial challenges faced by farmers in India. The paper sheds light on the grim reality of farmer suicides, attributing these tragedies to issues such as overwhelming debt, challenges in loan repayment, and the prevalence of crowdfunding scams. Recognizing the urgency of addressing these issues, the authors propose a blockchain-based solution designed to streamline and revolutionize the financial landscape for farmers. The core objective of this proposed solution is to eliminate intermediaries, fostering a direct and transparent connection between consumers and farmers. Leveraging the inherent features of blockchain technology, including transparency and security, the system aims to establish a peer-to-peer network. This network facilitates seamless donations from consumers to farmers, ensuring that financial support reaches its intended recipients without unnecessary intermediaries. The paper delves into the nuances of blockchain technology, discussing various types of blockchains and underscoring the advantages of employing private blockchains for the agricultural crowdfunding application. By utilizing private blockchains, the authors seek to maximize the benefits of transparency and security while tailoring the system to the specific needs and requirements of the agricultural context. Detailing their research methodology and implementation process, the authors utilize the Hyperledger Fabric framework to develop the blockchain network. Hyperledger Fabric, known for its suitability in enterprise settings, is chosen as the foundation for constructing a robust and efficient blockchain infrastructure tailored to the unique demands of agricultural crowdfunding. The client interface, crucial for ensuring user accessibility and engagement, is designed to be browser-based. This ensures that both fund contributors and farmers can seamlessly interact with the system, contributing to its overall usability and effectiveness. The paper meticulously outlines the functionalities provided for both these key actors in the system, demonstrating a comprehensive approach to addressing financial challenges within the agriculture sector. In conclusion, the paper by Naga Venkata Mohit Desabathina et al. presents a promising and innovative solution to the financial struggles faced by farmers in India. By amalgamating agricultural crowdfunding with blockchain technology, the proposed system holds the potential to transform the traditional financial landscape, providing a direct and transparent avenue for financial support to reach farmers in need. The detailed exploration of blockchain types, the strategic choice of Hyperledger Fabric, and the well-defined functionalities for users contribute to the paper's significance in the ongoing discourse on leveraging technology for agricultural development and financial inclusion.
3. Abhishek Katore and Sanskar Choubey [2] This paper explores existing research on the application of blockchain technology, particularly in the context of government funds tracking. The authors highlight the significance of blockchain in providing a decentralized, secure, and tamper-proof environment for recording and managing information. The introduction emphasizes the potential of digitalization in enhancing connectivity across various sectors of the economy in India, with a specific focus on government schemes and fund distribution. The proposed system aims to address the lack of transparency in government funds management by leveraging blockchain technology. The authors provide an overview of the system requirements, including tools like Ganache, NodeJS, Geth, MetaMask, and Truffle. The front-end of the system is developed using HTML5, CSS3, and JavaScript, creating a portal for government officials and citizens to interact transparently. The back-end utilizes blockchain frameworks like Ganache and Truffle, along with smart contracts written in Solidity. The process of the proposed system involves encrypting transactional data using hashes to create a secure and transparent blockchain. The decentralized nature of blockchain ensures that every node verifies transactions, contributing to an incorruptible government process. The system allows for a clear record of transactions, promoting authenticity and security in fund allocation and tracking. The results section presents screenshots of the developed portal, demonstrating the user interface and functionality. The home page, scheme details prompt, scheme listing, and scheme buying pages are showcased, emphasizing the user-friendly aspects of the system. The records of buying/selling schemes and the network of blocks forming an immutable ledger are also presented. the authors emphasize the strengths of blockchain technology, such as immutability, tamper-proofing, and decentralization, in enhancing the transparency and security of government fund management. They highlight the potential of the proposed system in providing citizens with a clear understanding of how government schemes benefit them and ensuring accountability in fund utilization. The literature review and proposed system contribute to the ongoing discourse on blockchain applications in the public sector.
4. Sahil Siddharth Jambhulkar and Vishakha Prashant Ratnaparkhi [2] The paper titled "Government Fund Distribution and Tracking System Using Blockchain Technology". the challenges faced by governments in efficiently managing funds allocated to various operations. The authors emphasize the prevalence of corruption in the current system, hindering the progress of states. The paper proposes a smart system that utilizes blockchain technology to track funds allocated to the government at each stage of the process, ensuring transparency and security. The authors begin by highlighting the extensive responsibilities of governments and the multitude of transactions involved in operations such as new projects, maintenance works, contracts, and employee payments. They identify low-level corruption as a major hurdle and propose a blockchain-based solution to address this issue. Blockchain technology is introduced as a decentralized and secure means of recording transactions. The setup phase of the proposed system involves generating public and secret parameters, including a random signing key pair and unique file identifiers. The authors use a bilinear map and hash functions to secure the authenticity of data blocks. In the audit phase, a third-party auditor (TPA) is introduced to verify data integrity. The TPA challenges the server to provide proofs of data storage correctness, and the server responds with encrypted information that is verified by the TPA. The paper discusses the security aspects of the proposed scheme, emphasizing the storage correctness and privacy-preserving properties. The security analysis includes evaluating the performance of the system in terms of efficiency, storage accuracy, and privacy preservation. The authors also provide mathematical modelling and algorithms for key aspects of their proposed system, such as AES with key generation, decryption, and TPA processes. The results analysis section presents the performance evaluation of the proposed system, considering file size, encryption and decryption times, uploading, and downloading times. The results indicate the efficiency and lightweight nature of the proposed scheme compared to an existing system that employs Attribute-Based Encryption (ABE). In conclusion, the paper underscores the potential of blockchain technology to bring transparency and security to government fund distribution and tracking. The proposed system, with its emphasis on decentralized ledger maintenance and cryptographic security measures, is positioned as a means to mitigate corruption and enhance the integrity of government processes.

III. OBJECTIVES

The project's objectives include:

1. Establish an efficient fund distribution mechanism.
2. Implement blockchain technology for transparency and accountability.
3. Streamline data management for accuracy and decision-making.
4. Seamlessly integrate new government schemes.
5. Promote collaboration among various government levels and stakeholders.
6. Prioritize data privacy and security measures.
7. Modernize government services through technology.
8. Contribute to social and economic development.
9. Build trust among stakeholders.
10. Ensure compliance with relevant laws and regulations.

IV. LIMITATIONS

The system's functionality relies on internet connectivity. Areas with limited or no internet access may face challenges in using the platform effectively.

1. Farmers and government officials may require training to effectively use the system, especially in areas where technological literacy is limited.
2. Implementing blockchain technology and developing the system may involve initial high costs, potentially limiting its adoption in resource-constrained environments.
3. Integrating the system with existing government databases or legacy systems may pose challenges, requiring additional resources and coordination.
4. Depending on the chosen blockchain platform, scalability concerns may arise as the user base grows, potentially impacting transaction speed and costs.
5. Adhering to regulatory requirements and legal frameworks related to blockchain and fund distribution may pose challenges and require ongoing monitoring and adjustments.
6. The accuracy of data relies on the information provided by farmers during registration. Inaccurate or incomplete data may affect the effectiveness of the fund distribution process.
7. Resistance to change from traditional fund distribution methods to a blockchain-based system may exist among stakeholders, requiring effective change management strategies.
8. Continuous maintenance and updates are crucial to address evolving requirements and technology changes, requiring ongoing commitment and resources.

Conclusion

In conclusion, the Online Auction System project, incorporating Python, blockchain technology, and cloud computing, promises to revolutionize the world of online auctions. By addressing the shortcomings of existing platforms, this innovative system offers transparency, security, decentralization, and efficiency.It automates key auction processes through smart contracts, provides a user-friendly interface with real-time updates, and ensures scalability and reliability through cloud resources. The system\'s data analytics capabilities offer valuable insights into user behavior and market trends, enhancing decision-making. Mobile accessibility, legal compliance, and a feedback system further improve the user experience.

References

[1] Naga Venkata Mohit Desabathina, Suresh Merugu, Vinit Kumar Gunjan, and Bandreddi Sunil Kumar,” Agricultural Crowdfunding Through Blockchain”,2022, http://dx.doi.org/10.1007/978-981-16-3690-5_155. [2] Hang Xiong, Tobias Dalhaus, Puqing Wang and Jiajin Huang,” Blockchain Technology for Agriculture: Applications and Rationale”, Frontiers in Blockchain, Volume 3 – 2020. [3] Abhishek Katore and Sanskar Choubey,” Government Scheme and Funds Tracker using Blockchain”, International Journal of Engineering Research & Technology (IJERT). Vol. 10 Issue 05, May-2021. [4] Megha Rani R, Keerthesh, Koradiya Yash, Pranam M C Acharya and Mahammad Althaf,” Agriculture Fund Granting Schemes (Using Blockchain)”, International Journal of Innovative Science and Research Technology, Volume 7, Issue 9, September – 2022. [5] Sahil Siddharth Jambhulkar and Vishakha Prashant Ratnaparkhi,” Government Fund Distribution and Tracking System using Blockchain Technology”, JETIR September 2020, Volume 7, Issue 9. [6] Antonios Litke, Dimosthenis Anagnostopoulos, Theodora Varvarigou, \"Blockchains for Supply Chain Management: Architectural Elements and Challenges towards a Global Scale Deployment\", MDPI January 2019.

Copyright

Copyright © 2024 Deshmukh Abhishek, Bhosale Parth, Asst. Prof. Aparna Mote. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.