The use of blockchain technology has the ability to completely change how we interact with one another and our surroundings. One of the most innovative technologies of our time has recently been acclaimed as blockchain technology. Although it is frequently linked to digital currencies like Bitcoin and Ethereum, its applications are much broader. It is becoming more popular in some areas, such the solution of social and humanitarian problems.
The way we connect with one another and our surroundings could be completely transformed by blockchain technology. It could enhance digital identification, the protection of sensitive personal information, legitimacy, compliance, and trust. A safe and open platform for transactions may be offered via blockchain technology. It offers an unchangeable record of all transactions as well as safe data storage and transfer between parties.
How blockchain can enhance social good
The following are the ways blockchain can enhance social good. They are as follows;
1.Digital identity: Digital identities of people can also be protected via blockchain technology. People can securely keep their personal information and verify their identification using blockchain technology without having to present physical documents. By doing this, it may be possible to protect people’s identities and data security. Additionally, it can aid in lowering fraud and identity theft.
2.protection of personal data: The usage of blockchain technology can also assist safeguard the personal information of individuals. People may safely store and transfer their data without worrying about it being compromised by using blockchain technology. This can aid in preserving the confidentiality and security of personal information.
3. Legitimacy: The authenticity of transactions can also be helped by using blockchain technology. Individuals can ensure that transactions are legitimately done and authenticated by using blockchain technology. By doing so, you may lessen the chance of fraud and make sure that all transactions are carried out in a morally and legally responsible way.
4. Compliance: Blockchain technology can also be used to ensure that different regulations are followed. Organisations may make sure that all transactions are carried out in compliance with applicable rules and regulations by utilising blockchain technology. This can aid in ensuring that businesses adhere to all applicable rules and regulations.
5. Trust: Finally, the development of trust between parties can also be aided by blockchain technology. People may securely store and share data using blockchain technology while also confirming the data’s legitimacy. This can make sure that every transaction is carried out securely and reliably. Finally, blockchain technology opens up a wide range of opportunities for social good.
How blockchain help in humanitarian and philanthropy
By recording donations across many layers, blockchain technology can be used to create a truly transparent charity system. This would make it possible for contributors to monitor how their money is used and make sure it gets to the intended recipients.
1.Reduction of transaction costs: Exorbitant administrative expenses are a red flag in charity. Non profit organizations and charities spend a huge sum for fundraising and marketing activities. Moreover, the usual costs associated with the donations processing and banking transactions are higher. Blockchain-based platforms helps charity organizations to harness the power of peer-to-peer networks by eliminating the financial intermediaries such as banks. This would reduce the transaction costs and transaction settlement time dramatically
2.Using smart contracts to automate processes: Digital contracts known as “smart contracts” operate on a computerised transaction protocol and are monitored by a number of nodes linked to a blockchain network. There is no need for intermediaries like lawyers or notaries because blockchain contracts operate on a decentralised basis amongst all allowed parties and may self-execute and self-maintain. This kind of algorithmic giving makes nonprofits more accountable while also fostering a greater sense of confidence among supporters. Automated smart contracts are advantageous for philanthropies because they guarantee that the money may only be used for the intended purposes and will only be disbursed to grant recipients after the conditions are satisfied.
3.Increased transparency: The immutability and transparency of transactions recorded on the blockchain network make it simple for all stakeholders to understand donation schemes. The value chain of records linked on a blockchain network can be followed. Blockchain-based solutions for charity enable donors to follow their donations all the way through to the recipient. Strong and transparent impact tracking and measuring systems would help cut down on wasteful spending, get rid of corruption, and increase confidence.
The way humanitarian aid is distributed globally could be completely changed by blockchain technology. In essence, blockchain is a decentralised digital ledger that securely and openly records transactions. This technology can be used to establish an effective and transparent system for monitoring the distribution of help, lowering fraud and corruption, and guaranteeing that it reaches those who need it most.
In general, blockchain technology has a wide range of possible uses for addressing humanitarian concerns, from enhancing supply chain management to raising assistance distribution transparency. Recent years have seen a number of case study examples of blockchain technology being successfully implemented in humanitarian settings.
The possible application of blockchain is in refugee relocation programmes, where it can be used to track aid delivery and authenticate identities. Using blockchain technology, UNICEF started a trial project in Jordan in 2018 to give poor Syrian refugees financial aid. The Building Blocks project of the World Food Programme (WFP) uses blockchain technology to deliver relief to refugees in Jordan.
Blockchain technology has the power to completely transform how we approach social and humanitarian challenges. It can help guarantee that aid reaches people who need it most by offering a secure and open platform for transactions. Using smart contracts can increase efficiency and accountability in the way aid is distributed.
However, employing blockchain technology in this situation has its difficulties and restrictions. Scalability, compatibility with current systems, and assuring access for underserved groups are a few of these concerns. If we wish to maximise the positive societal effects of blockchain technology, it is crucial that these issues are resolved.