Programming the Contract

The smart contract can be programmed so that it hold all the received funds until a certain goal is reached.

The supporters of a project can now transfer their funds to the smart contract, If the project gets fully funded (also called a soft-cap), the contract automatically passes the funds to the creators of the project.

But what happens if the project fails to meet the goal? The funds will automatically go back to the supporters and because smart contracts are stored on a blockchain, everything is completely distributed.

With smart contract technology in place  no one is in control of the funds.