IMPACT OF BLOCKCHAIN TECHNOLOGY ON THE OPERATIONAL EFFICIENCY OF CROWDFUNDING PLATFORMS

Abstract

Recently, crowdfunding platforms have become more attractive because of their advantages comparing to traditional funding sources. Nevertheless, the further potential of crowdfunding platforms development remains unclear due to worries related to reliability, transparency and trustworthiness as well as limitations attracting investments. Employing an online survey approach and questioning the targeted experts, the most important criteria for blockchain technology implementation into crowdfunding platforms were discussed. A VAS (visual analogue scale) matrix for criteria weighting (VASMA weighting) methodology was chosen to find out the main factors that affect crowdfunding platforms the most when implementing blockchain technology. The main findings reveal that Cybersecurity risks, no specific laws to respect all terms of funding and Complex cryptocurrency regulations are the most important for the crowdfunding platforms employees. Accordingly, this study identifies both benefits through blockchain technology and barriers of the application of blockchain technology in terms of legal requirements and development costs.