Uniqueness, security and oversight in blockchain technology will solve the problem of transparency in charitable work.
In January 2017, the United Nations Food Program (WFP) began using blockchain to authorize and record transactions of people in need in Pakistan’s Sindh province. Blockchain technology does not require both financial intermediaries such as banks to link direct, secure and expeditious transactions between the public and the WFP.
Following a successful pilot, WFP continues to develop blockchain technology and applications in two refugee camps in Jordan. Now, more than 100,000 people living in the camps can scan their irises at checkout and buy groceries.
This virtual wallet is a bank account that makes all transactions secure and transparent, said Bernhard Gowatch, WFP’s innovation accelerator. This allows humanitarian organizations and charities to work more closely together. “We use blockchain because we want to make humanitarian assistance more effective. This technology allows agencies such as the United Nations to collaborate with other humanitarian groups because it is a distributed asset system,” Gowatch said. Forbes.
According to the WFP, direct remittances to those in need are one of the most effective ways to volunteer while supporting the growth of local economies. However, cash flow is defined by geographical factors, political instability, insufficient or unreliable financial service providers. Not to mention that many people still have difficulty opening a bank account, so blockchain is considered a solution to the problem of transparency and efficient distribution of support funds.
From a technical standpoint, the co-founder and CTO of Cardiacin, Mr. Hui Nguyen said: “Transparency and automation are two natural characteristics of blockchain technology. So good, blockchain-like transparency contributes a lot to any activity that requires it”. According to Hui, if charities integrate with Blockchain, every incoming transaction will be automatically recorded. Everyone can check and compare the actual amount received. “Then there will be no need for statements or permission from any company,” Mr Hui Quinn said.
Explaining further how Blockchain is used in the charity, Do Hong Long – CEO of AZdag Investment Fund, co-founder of Pinben Cryptocurrency Transaction – can see that donations cannot be transferred and can be registered permanently due to the unchanging structure of Blackbain. In addition, they can track where the money goes and when it comes into use with each donation, thereby helping to reduce losses in the financial management process. “All transactions in the blockchain are broadcast across the network, and each node receives and records it in the ledger, which makes the blockchain detectable. Shareholders can ask and follow each transaction. Mr. Do Hoang Long insisted.
According to Mrs. Lin Hong, Director of Finance Vietnam, in an environment where charitable activities face many issues related to transparency, charities can help build trust with donors. “When using Blockchain, donors can fully see the path of their donations. This technology ensures that the process of using charity money is detectable, unchanging and reliable,” Ms Lin Hong said.
In addition, Blockchain helps to build a transparent relationship between donors and recipients; Reducing administrative costs through automation; Improving the ability to reach the right audience; Raised a large sum of money through social capital. “Most importantly, the transparency of the technology can create integration and integrity in the charity,” said Finance Vietnam’s representative.
According to experts, blockchain is the main technology, not the product. To apply to charity, developers need to create intuitive products for users. Companies can start by writing smart contracts (smart contracts) and have appropriate protocols (protocols) for charitable purposes. Small businesses and individuals can openly use pre-built blockchain sites for charities such as OpenLedger about cash flow.
However, the use of blockchain technology for charitable activities requires initial investment in human resources and large infrastructure, and these resources are still scarce in Vietnam. Volunteer organizations and individuals collaborating with companies that specialize in blockchain are the most appropriate choice at this time. “Furthermore, the knowledge challenge related to blockchain technology and smart contracts may motivate potential donors. Some charities may be reluctant to adopt a new technology that they do not fully trust and fully understand,” he said. Long said.
According to Lin Hong, in the next few years or 2030, people will see the popularity of applications on blockchain. “In the future it will be much easier for users to monitor the activity of fundraising cash flows using blockchain technology. We can solve the problem by accessing a domain name created by the fund. Charity transparency,” said the representative of Finance Vietnam.
Currently, there are many large charities and relief funds in the world, such as WFP, UNICEF, St Mungo’s, Binance Charity Foundation (BCF) and others …