In this regard, blockchain improves the crowdfunding process with its high levels of transparency, use of smart contracts and scope for enforcement of automatic payments in case of project failures or contract breaches. It is also possible to introduce some form of vetting process for project initiators, especially in an initial permissioned set-up, so that financing platform providers take the responsibility for validating investment projects. Blockchain-based crowdfunding may therefore help to mitigate investment risk more effectively compared to traditional crowdfunding processes.