Intelligent Blockchain-Driven Crowdfunding with AI-Powered Fraud Defense and Decentralized Trust

Abstract

Crowdfunding websites have also changed the process of financing of entrepreneurs but still have problems of fraud, lack of transparency, control of funds centrally and protection of investors. In this paper, the author introduces a blockchain-based milestone crowdfunding system called BlockFund, which includes artificial intelligence and fraud detection and decentralized governance. The system makes use of Ethereum smart contracts to implement escrow-based milestone funds release to guarantee incremental checks of the project development. Gradient Boosting Classifier-based AI fraud detector checks the legitimacy of campaigns and has an accuracy of 87.3% in detecting possibly fraudulent projects. The weight-based voting systems based on reputation enable the supporters to vote in the milestone verifications and governance, removing a centralized control. Encryption of transactions and identity verification via Elliptic Curve Digital Signature Algorithms ensure crypto-security. The experimental analysis indicates that there are substantial changes in the reduction of fraud, improved governance, and cost reduction of operations in comparison to the conventional crowdfunding systems. Combining blockchain immutability and smart risk measurement creates a safe, transparent and self-sufficient funding environment. The suggested framework will increase investor trust, improve misuse of finances and provide a scalable framework to be used in the next generation decentralized crowdfunding platform.