Blockchain makes charitable giving transparent
At CeBIT 2017 faizod will present the first showcase of “Charity Chain,” a system for giving based on Hyperledger technology. This distributed ledger technology has until now been used in the financial sector, in the pharmaceutical and chemical industries, and in the food and machine building sectors to traceably document steps in processes.
The most important features of the Blockchain, traceability and manipulation security, are guaranteed by the strict use of Hyperledger.
With the help of Hyperledger, faizod has developed a model to handle the use of donations across the globe using Blockchain technology.
Hyperledger makes donating transparent; the donor is always able to see what happens with their donation. At CeBIT it will be possible to experience this first hand.
High willingness to donate in Germany
The amount donated in Germany varies annually, and lies currently around 5 billion Euros per year. In the event of a humanitarian crisis, willingness to donate rises sharply /1/. Germany donates largely to humanitarian aid projects (75%), followed by cultural and monument conservation (8%), animal welfare (5%), and environmental protection (4%) /2/. Willingness to donate varies greatly by nation. The Netherlands, Ireland, and the UK are leaders, all with over 70% of their populations making donations. The national average worldwide is 46%. In the last positions are China and Russia /3/.
The largest donor countries of humanitarian aid payments worldwide in 2015 were the US (6.4 billion US dollars), Turkey (3.2 billion US dollars), and the UK (2.8 billion US dollars)
The EU (2 billion US dollars), Germany (1.5 billion US dollars), and Japan (1 billion US dollars). In total, the 20 largest donor countries donated 25.6 billion US dollars.
Insurance for donations
A steady flow of donor funds ends up in the gutter and often less than half of donation funds arrive where intended. A Blockchain-based donation platform can help.
The main benefit of the Blockchain is that third parties are excluded. The donor pays their amount directly into the Blockchain and the money is immediately available to the intended recipient.
Blockchain is a tamper-proof database in which all transactions are written in chronologically, similarly to in a normal ledger. In order to prevent manipulation blocks are formed and closed with a checksum. The blocks are arranged one after another, each containing the checksum of the previous blocks, forming a sort of chain, hence “Blockchain.” Many copies of this chain are created and distributed, so that no central unit controls the chain.
Hyperledger ensures that all participants have the same copy of the Blockchain, which makes it possible for attempted changes to be detected and forbidden.
Tangible results for donors
Reconstruction aid after natural disasters, books for schools, food projects, medical aid, and housing projects could be directly financed with Charity Chain. faizod will introduce a model for supplying clean drinking water to the populations of third world countries. This water must be drained from a well and cleaned with UV treatment and filters, requiring energy, technology, and chemicals.
The technical system for clean drinking water would be connected to Charity Chain. As soon as a donor transfers money to the Blockchain, the well would spring into action and the person on the receiving end would obtain water. The system would be balanced so that water could be drawn continuously. An internet connection is needed, which is now available almost anywhere in the world. If the system were to be handled as before, the entire process would take several days and burn costs for infrastructure, administration, and employee salaries. The use of the Blockchain would thus be tremendously advantageous.
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References
/1/ http://www.zeit.de/2013/04/Infografik-Spenden
Der Beitrag Blockchain Goes Benevolent with Charity Chain erschien zuerst auf faizod..