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Columbia University ELEN E6883HW_Programming

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Programming Assignment: Crowdfunding an Invention ELEN E6883: Introduction to Blockchain Technology March 19, 2020 1 Background Description Crowdfunding an invention: Assume that your team invente ... d a wireless charging device for smartphones, called \MagCharging". A MagCharging consists of a plastic case (about $5) and a copper coil (about $3), as show in Fig. 1. Now, you want to raise funds on Ethereum blockchain to manufacture 1; 000 MagChargings and sell them on Amazon. Figure 1: MagCharging: plastic case and copper coil Background on Crowdfunding: A good invention may take a lot of funds and collective efforts. You could ask for investments, however, investors prefer projects that are more likely to get fundings (Series ABCDE... rounds). Therefore, crowdfunding would be an alternative solution. Crowdfunding is similar to ICOs (Initial Coin Offering). In particular, a startup team first announces an invention and a date for fundraising for that invention. Before the crowdfunding campaign begins, the startup needs to release documents such as whitepaper to introduce the invention. Once the crowdfunding campaign begins, the startup team accepts contributions from investors on the Ethereum blockchain. If the goal (e.g., $5M) is not met, the funds will be returned to the investors, reducing the risk for investors. If the goal is achieved, the startup keeps the fund and then uses it to develop the proposed product. Since the crowdfunding rules are open and auditable, there is no need for a centralized, trusted platform. The only fee every investor needs to pay is the transaction gas fee on Ethereum. [Show More]

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