Blockchain based Transparent and Genuine Charity Application

Abstract

[21]Charity plays an essential role in our society, and often recognized as a type of social debt, leading to the circulation of a significant amount of money worldwide. We have witnessed increased growth of non-commercial organizations and charity funds through recent years, collecting donations for various philanthropic needs. Unfortunately, charity funds frequently gain much traction from the unscrupulous organization, leading to significant damage for industry\'s reputation, reducing trust level, affecting the power to boost donations. [22]We strongly believe that utilizing blockchain technology will boost trust, increase efficiency, and encourage more donations. The Charity Webapp project, a blockchain-based charity foundation platform that facilitates the trustful network\'s formation and is accountable for collecting donation funds. The blockchain network would be comprised of publicly known, trustful, and prestigious organizations. All organizations\' operations within the platform will become fully transparent and visual , leveraging properties of immutability, provenance, and non-repudiation.[23]Therefore the platform will alleviate the results of dishonest actions, revealing fraudulent organizations\' activities.

Introduction

I. INTRODUCTION

“Blockchain is a tech. Bitcoin is merely the first mainstream manifestation of its potential.”

1. Blockchain is a digitized, distributed ledger for all records.
2. A distributed database recording transaction in chronological order.
3. Devised initially to power bitcoin.
4. Blockchain is built with 3 core technologies:

A. Private Key Cryptography

• ECC
• RSA

Example – Bitcoin and Etherum are working on ECC algorithm which is a part of EDCA Umbrella ECC algorithm states a curve where mirror points are choosen as a key pair.

B. P2P Network

• Torrent Networks
• System of Records

Example – A P2P system is devised in such a way that the network participants do not need to trust a centralised server they are connected and creates trust through the consensus.

C. Program (The Blockchain Protocol)

• Hashing Algorithms
• Handshake Algorithms

Protocols are used to define how our chain will operate.

Example – The bitcoin defines that an new block will be added about every 10 minutes. A reward will be distributed for conformation of the blocks, and the blocks size could not go up to 1mb. Other blockchain have some different protocols some blockchains might also include protocols for assets in data.

Blockchain in general is a digital store of information which is distributed and available over P2P network. Blockchain is based upon cryptographic algorithms and runs consensus algorithm for security and immutability. Every new block is added inside the blockchain which is linked to the previous block using the block hash. [22]All the blocks are present in chronological order and every participant over the network can view all the transactions.

• It’s a digitized store of information in the form of transactions.
• It is distributed. Thus, nobody control’s it.
•  Security and immutability is validated with the help of consensus algorithm.
• When a new block gets added to over a blockchain, it is connected to the previous block using a cryptographic hash.
• Data gets stored in chronological order.
• Everyone present over the network can view the transactions.

D. Blockchain Definition

“A blockchain is a digitized, distributesd, consensus-based secure storage of information protected from revision and tampering over the P2P network.”

A blockchain network witnesses an excellent deal of transaction activity. When utilized in cryptocurrency, maintaining a record of those transactions helps the system track what proportion was or wasn't used and which parties were involved. The transactions made during a given period are recorded into a file called a block, which is that the idea of the blockchain network.

A block stores information. There are many pieces of data included within a block, but it doesn't occupy an outsized amount of space for storing . Blocks generally include these elements, but it'd vary between different types:

1. Magic Number: Variety containing specific values that identify that block as a part of a specific cryptocurrency's network.
2. Blocksize: Sets the dimensions limit on the block in order that only a selected amount of data are often written in it.
3. Block Header: Contains information about the block.
4. Transaction Counter: variety that represents what percentage transactions are stored within the block.
5. Transactions: An inventory of all of the transactions within a block.

The transaction element is that the largest because it contains the foremost information. It is followed in storage size by the block header, which incorporates these sub-elements:

a. Version: The cryptocurrency version being used.

b. Previous block hash: Contains a hash (encrypted number) of the previous block's header.

c. Hash Merkle root: Hash of transactions within the Merkle tree of the present block.

d. Time: A timestamp to put the block within the blockchain.

e. Bits: the problem rating of the target hash, signifying the problem in solving the nonce.

f. Nonce: The encrypted number that a miner must solve to verify the block and shut it.

One 32-bit number within the header is named a nonce—the mining program uses random numbers to "guess" the nonce within the hash. When a nonce is verified, the hash is solved when the nonce, or variety but it, is guessed. Then, the network closes that block, generates a replacement one with a header, and therefore the process repeats.

Different mechanisms are wont to reach a consensus; the foremost popular for cryptocurrency is proof-of-work (PoW), with proof-of-stake (PoS) becoming more so due to the reduced energy consumption compared to PoW.

In order to increase credibility of charity organizations, we have implemented the block chain technology into this charity website .In which the Ethereum blockchain has been used.

Blockchain has different characteristics and features, the following are its main characteristics:

• Transparency
• Anonymity
• Consensus Driven
• Decentralization
• Immutability

In this project we have implemented on Ethereum blockchain, the website interacts with the block chain

Through smart contracts for each transaction performed the transaction hash is generated which is provided as a proof for Transaction is performed safely/correctly.

Each transactions are verified by miners why own large no of Gnu's which perform computing and as a reward the miners get some of the crypto as reward

II. PROBLEM STATEMENT

Donors have every reason to fear that charitable funds will not reach people who really need them. According to the same HSE survey in 2017, 68% of citizens are willing to donate more if there is evidence of where and what they are going. By law, foundations are required to take care of public records (in particular, to publish reports on their websites), and now all reports are prepared by employees of a foundation manually .The problem of mistrust of donors and overloading of funds are often solved by organizing an external database, records during which are recorded within the blockchain. Therefore, it's important to develop a social platform supported blockchain technology which will help non-profit organizations, foundations, volunteers and social entrepreneurs in their work and make donation processes transparent and understandable for all parties. Blockchain will allow all users of the platform to ascertain their account and an outline of every payment of the organization it supports. Also, the technology of distributed ledger will guarantee a donor that the quantity will reach the goal, and with none intermediaries consistent with Rosstat research, in 2017 there have been more than 9600 charitable foundations and about 1700 charitable organizations.

III. RELATED WORK

A. Charity System Mode

The charity system mode proposed is shown in Figure 2. There are four roles: donors, beneficiaries, charity organizations and cooperative stores.

1. Donor

Donors are the one who donates their goods to the beneficiary (fundraisers) or to the charity administrator. After successful login on the charity platform, the donor will learn about the charity projects and select the project on which he wants to spend the token (Etherum). Then the system will check the following details and the balance of the donors account. And if the balance is insufficient in the donors account they will not be able to donate anything. Donation can be completed only if the balance is sufficient in the donors account.

2. Beneficiary (Fundraisers)

Beneficiary are the one who receive the fund from the donors but before they receive their funds they have to fill the all the required details and create their charity project and post it on the charity platform.

3. Cooperative Shops

Cooperative shops are just like a poster or an add shown in the above image. Beneficiaries make them to obtain tokens from the donors. They can exchange tokens for real money by charity organizations.

4. Charity Organization

The organization can get donation from the platform to help other people and apply money to the cooperative shops for token exchanging.

a. A Decentralized System That provides security and prevents loss of Transactional Data

b. The User or beneficiary can seek help and create charity projects through the platform. Donors learn about charity projects on the platform, and then donate to beneficiaries or the charity organizations. Beneficiaries upload their information to the platform for help; they can get and spend tokens in accordingly.

c. Funds are transferred directly to beneficiaries .No third Party is involved.

d. Low Transaction charges as no governmental charges are included and the Transactional Fees (Gas Fees) remains same for all the transactions irrespective of the amount that is transferred.

e. A beneficiary initiates a charity project through a smart contract, and then the project will be deployed on the blockchain. Donors view the charity project in browser and select an appropriate project to make donation. The funds will be transferred to the Dapp administrator account. When the beneficiary needs funds, the capital expenditure request is initiated with the smart contract, if most people who participate in the project agree to the request by voting, the donation funds of the project will be transferred from the Dapp administrator account to the beneficiary account.

IV. PROJECT PURPOSE

In existing charity applications everything is done manually, so Blockchain technology is a structure that stores transactional records, also known as the block, of the public in several databases, known [41]as the “chain,” in a network connected through peer-to-peer nodes. [42]Typically, this storage is referred to as a 'digital ledger. The main theme of the project is to give the public a genuine and true platform on which they can donate their goods without the third party and faith assurance. The enhancement is done with the help of blockchain technology because no alteration is possible and also no one can cheat in the system as all the transactions are transparent to everyone.

V. EXPERIMENTAL RESULT

Steps required for starting the charity application:

Ganache-

Ganache is used for setting up a personal Ethereum Blockchain. It is also used for testing the Solidity contracts. It provides more features in comparison to Remix.

Opening ganache-

Ganache Desktop-

When we start Ganache the following screen appears shown below –

The console within the above screenshot shows two user accounts with balance of 100 ETH (Ether - a currency for transaction on Ethereum platform). It also shows a transaction count of zero for every account. As the user has not performed any transactions thus far, this count is clearly zero.

Opening Metamask

MetaMask may be a software cryptocurrency wallet wont to interact with the Ethereum blockchain. It allows users to access their Ethereum wallet through a browser extension or mobile app, which may then be wont to interact with decentralized applications.MetaMask, is developed by ConsenSys Software Inc., a blockchain software company focusing on Ethereum-based tools and infrastructure.

When Metamask starts, the Metamask screen will appear as shown below –

Enter your password then click on Unlock

Now we have to create 2 accounts to make transactions 1 for the Doner ,the doner is the one who will donates it’s good to the beneficiary(a person who derives advantage from something) and the 2nd account for the beneficiary(the one who receives goods).  

So for creating the account click on the symbol marked in red.

In this way we have created 2 accounts

The donor

The beneficiary

Now go to Node.js command prompt and run the following commands-

Node.js is an open-source, cross-platform, back-end JavaScript runtime environment that runs on the V8 engine and executes JavaScript code outside a web browser.

Truffle is a development environment, testing framework and asset pipeline for Ethereum, aiming to make life as an Ethereum developer easier. With Truffle, you get:

Built-in smart contract compilation, linking, deployment and binary management.

Automated contract testing with Mocha and Chai.

Configurable build pipeline with support for custom build processes.

Scriptable deployment & migrations framework.

Network management for deploying to many public & private networks.

Interactive console for direct contract communication.

Instant rebuilding of assets during development.

External script runner that executes scripts within a Truffle environment.

A. Commands

1. cd C:\Users\RIYA\Desktop\charity dapp
2. truffle compile
3. truffle migrate –reset
4. cd app
5. npm run start

If a beneficiary wants to create his charity project then can do the following steps to get the funds from the doner.

a. Step 1

Click on Create Campaign present on the right side of the corner of the website.

The following page will get opened and now the beneficiary has to fill all the required details asked for.

VI. FUTURE SCOPE

Blockchain technology has a great future worldwide. An incredible scope of blockchain technology has been observed within the financial field. Blockchain technology helps charities become more transparent.

In the future, we may even see accountability for the spending of donations tied to smart contracts, enabling donors to donate on to those best during a position to assist .

Blockchain technology increases accountability & reduces the custodian of fund raise issue.

It is also improving workflow and efficiency..

Conclusion

\\We have developed a charity fundraiser Website which is based on Ethereum to verify our system and demonstrate some core functions of the charity platform. The functions of creating project, donating, approving funds and checking the Transactions.

References

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Copyright

Copyright © 2022 Mr. Omkar Sunil Naiknavare, Miss. Amisha Bharat Borana, Miss. Riya Chandrakant Chawate, Mr. Mandar Pravin Patil, Prof. Sunil Sonawane . 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.