To utilize blockchain for social good denotes to transform the relationships between charities, recipients, and doors. The capability to transfer funds straight to organizations and recipients through a distributed ledger which tracks transactions will change the way people participate in charitable endeavors. In fact, philanthropists from the United States alone donated over 100 million dollars for social good last 2016. However, those numbers would just make a difference if we guarantee they add up to the proper causes.
Benefits of Blockchain Technology for Social Good
Blockchain tech helps remove the likelihood of financial leakage and fraud, supporting philanthropic people to donate more kindly. People wish to help other individuals. All they need is the self-assurance that their resources are getting the intended audience. Administration fees, middlemen, lack of accountability, administration and high overhead are some of the known obstacles on the journey to social good.
Here’s how blockchain technology could aid:
- Improved Trust
Blockchain tech redefines conviction in business – unknown parties trading high-value assets. Certainly sounds inconsistent, but the technology makes it a reality. It does it by uniting the openness of the internet along with secure cryptography. It offers everybody on the blockchain the capability to keep track and confirm information. Further, it is a write-once and read-anytime database which is not under the control of any authority, which makes this platform totally secure.
- Improved transparency
Did you know that transparency is the inherent nature of blockchain? Any user, registered on specific blockchain can see exactly who owns what at any time, and who is given what to whom. Cryptocurrencies, further utilized for financial transactions over the technology are non-fungible. That denotes donors could track their donations through charity.
- Lessened transaction cost
Blockchain tech is decentralized. It is not owned by any person or organization. But instead, it is shared among its users. There’s no necessity for a third party and the ecosystem on the blockchain flourishes on smart contracts.
The Future of Blockchain Technology for Social Good
In the coming years, blockchain technology could transform a lot in the field of philanthropy. One way of this is by building direct models of giving, removing the need for any level of centralization of any kind. In fact, extensive adoption of cryptocurrency would help implement such a model on a huge scale.
XinFin is a groundbreaking blockchain platform and considered as the new era’s eco-system. XinFin is Singaporean-based blockchain technology that aims to map real-world projects along with blockchain-based smart contracts allowing P2P centralized or decentralized transactions or trade.
The focus of the platform is to liaise with governments and institutions to allow the lowest cost infrastructure financing through presenting a cashback or bounty to financers.
If organizations and individuals with charitable perspective are able to attach even a fraction of the potential of the blockchain, the way we handle environmental, social problems will be changed massively. However, charities and organizations will stay play a major role in managing the ethics of blockchain technology in social good.