For the past years, charities in the United States brought more than $2 trillion in revenue. $373 billion of which came through different charitable contributions. The industry still has issues which have persisted for years even the charitable donations are increasing in amount and popularity. That avoids many from contributing as much as they would. In other cases, it stops individuals from donating at all.
However, there are indications which blockchain technology could assist.
The major issues in charitable giving are the transaction expenses charged on donations. It’s the possible corruption by intermediaries fund and services, the insufficient accountability within non-profits and other NGOs as to how the donation is spent. Such concerns could be addressed through a donation system facilitated through blockchain.
A blockchain is known as a public database which monitors the goods or money exchanged on a decentralized, public ledger. The technology rooted in the digital currency bitcoin last 2009. After that, various business has implemented blockchain technology. The advantage of this technology is that it cuts out the intermediary.
For example, I pay you $20; you will get the $20. No one needs to manage it in between, and the blockchain records that I presented you the $20. Thus, the benefits of charitable donations are obvious.
Not just are there financial intermediaries, but also individuals, companies, and government agencies all along the way which services, goods and money pass through. Each one desires a cut. Of course, there’s a reasonable way to charge for services. However, most of the money is going to be at disadvantaged regions. That’s where the governments require to implement relief services similar which made the unfair living states in the first place.
Through blockchain, watchdogs can monitor how that money was spent. It can also stop them from utilizing money in similar inefficient ways.
Every time sending donations to charities, the fees are charged through debit, credit card or ACH processors. Such fees are more likely to be in the 3% range. When a third-party donation solution is utilized, there are numerous feels involved.
On the other hand, with a digital currency which operates on the blockchain, like XinFin, your donation goes straight to a charity instantaneously and free of charge. With a charity blockchain tech, a non-bitcoin donation could be tracked via decentralized digital ledger. It records all the path of the money at each transaction.
The XDC ecosystem will present accessible light wallets easily which will connect safely to full nodes. Every light wallet will have a unique key which is utilized to sign transactions from their respective accounts. Plus, since the light wallet is an impartial application which serves single account, the chance of losing or hacking the XDC tokens becomes unlikely.
A blockchain ledger can cut down on corruption in the charity process. That democratizes accountability and giving. Even a single donor would have the capacity to make some noise if they doubted wrongdoing.
Through blockchain, those people or any of the agencies handling the donations in between could intervene and halt the use of funds. Charities can now start accepting cryptocurrencies. Now there should be widespread use of XDC to solve the issues in charity.