Blockchain is Rebuilding Public Trust in Non-Profit Organizations
Nine hundred million financial reports — Bitcoin and hundreds of other blockchain-based digital currencies are on the rise. The technology that makes digital currency possible is called a blockchain, which is a decentralized ledger that is controlled by all users rather than the central bank. Although the currency based on a large amount of code sounds complicated, some key features of the blockchain make it a very attractive technology for non-profit organizations.
The decentralized nature of the blockchain makes global organizations more efficient. For example, the United Nations World Food Programme (WFP) uses blockchains to provide cash transfers to organizations supporting Syrian refugees. According to Robert Opp, Director of Innovation and Change Management at WFP, “Blockchain technology has enabled us to strengthen our ability to fight hunger.” Through this project, the United Nations can cut costs and control financial risks, such as fraud, and make more urgent situations. Rapid response.
Traditional currencies are not easily tracked during trading. However, digital currency is unique and can be traced to the entire ledger. Although there are dynamic interactions in the non-profit sector, the definition of spending and whether the organization should use the money they raise to cover daily expenses, we can be sure that donors are more willing to fund projects directly. The donor wants to see where the money is going and how it is used at any time.
GiveTrack is a new platform that utilizes blockchain. GiveTrack works on donations for the Bitcoin project and links the financial information with the results of a project that the non-profit organization actively communicates with. This transparency may increase the donor’s trust in the organization (which can increase the amount of donations). At the same time, this may pose many challenges to the organization when communicating with donors on how funds are used.
Ledgers are used not only for financial transactions. Blockchain technology can also be used to track and protect all its records, such as valuable assets such as documents, artwork, or jewelry. Companies like Brilliant Earth use blockchain technology to better document the origin of gemstones and solve the social and environmental issues associated with mining and manufacturing gemstones.
With blockchain technology, you can know which wallet your contribution came from, but you don’t know who the owner of the wallet is. For organizations that accept these payments, there is a certain risk of this anonymity.For example, donations can be obtained from illegal or suspicious sources. In addition, it can also allow donors and organizations to fund projects whose results and goals may be banned. For example, blockchain technology is used to mask the identity of donors and support projects that persecute homosexuals in locations such as Uganda or Russia.
While the concept of blockchain technology and the acceptance of digital currency donations appear to be an unavoidable trend, the increase in familiarity with these transactions may bring substantial benefits to the non-profit sector. It allows the transparency of financial contributions, ensures the authenticity of the goods we buy or sell globally, reduces risks and fraud, and, most importantly, it can rebuild or strengthen donor trust in charities.
Your first step is simple: open an encrypted wallet and receive donations through an address that can be encrypted for payment. You can save your wallet on your own computer, or use one of many cloud-based wallet providers. After you set up your wallet, you can make a donation directly through your wallet, or sell bitcoin or other digital currency, or save money as an investment.
The combination of IoT and blockchain technologies may provide greater benefits than authorizing digital currency or supporting existing donors. Using blockchain frameworks, the Internet-supported objects that we interact with on a daily basis, such as refrigerators, washing machines, and lights, may generate their own digital currency. This means that these items not only make money, they can also be saved or presented. In the future, will we see a new generation of robot philanthropists?