The blockchain speaks of a public ledger technology in which every cryptocurrency transaction is signed digitally to confirm its originality. It also works to guarantee that the information therein isn’t tampered with. Per se, the operations recorded on the ledger and the blockchain are considered to be of the highest level of honesty.
In the beginning days of cryptocurrency, a lot of people thought that blockchain technology was only about Bitcoin. But today, it’s fast becoming more obvious that the technology is more than just the cryptocurrency. While blockchain has the potential to transform nearly all industries in the world, nowhere will its impact be more noticeable that in philanthropic giving.
What Can Blockchain Technology Offer in Charity?
For charity institutions, blockchain delivers an exceptional window for honesty and transparency. That could help make them more reliable in the eyes of backers. Some of the issues which NGOs involve is the lack of accountability for how the money is spent. Donors are often hesitant to offer because they can’t be certain where their funds are going to or who they’re helping with the donation. In the long run, such issues can cause them to become disappointed.
That makes it difficult for charity institutions to attract and retain sponsors. Nevertheless, blockchain technology is fast growing trust in the system. It achieves this by showing humanitarians where their donations are going. The technology accomplishes this by making the system entirely transparent. It also makes the information easily accessible.
For instance, XinFin is the very first and perhaps the only hybrid blockchain technology network. It was made to help connect enterprise and communities around the world through blockchain. The network is powered by the XinFin Digital Contract that combines transparency and power of public network along with security and speed of a private network.
Here is how blockchain improves trust and transparency in the blockchain.
- Blockchain makes it simpler to determine well-intentioned institutions from fraudulent ones. Given that donations made through cryptocurrencies can be tracked, it becomes simpler for donors to determine the organizations which are furthering their cause. That way, they identify the right charities to work with.
- Every transaction is visible. Distributed ledgers can be utilized to monitor transactions. This enhanced traceability makes it simpler to track how funds are being used. Thus, donors can check even from a distance how their donations ended up aiding the people which charity institutions claim to help.
- Funds go straight to the cause donors. Thanks to the blockchain, donations don’t need to pass through third parties anymore. As an alternative, they go directly to the recipients and the firms which are in a position to help them. That will guarantee that there is less room for financial leakage or fraud in the system.
To sum up, cryptocurrency and blockchain will help make sure efficiency. It will offer backers confidence that their funds and donations are being put toward the causes they support.
