Blockchain is a technology that is making room for itself in almost every sector. It seeks to promote transparency as well as reduce the risk of fraud. This technology is so advanced and revolutionizing that people who are against cryptocurrencies are also in favor of Blockchain adoption.
Just like any other sector, blockchain technology can be a game-changer for the charity field, but it is often overlooked by charities due to a lack of understanding, which may be due to a lack of technical expertise, as well as the difficulty of explaining how it can provide tangible benefits to charities. In this article, we will be talking about blockchain and how it can improve charity funding. But before that, we need to understand Blockchain technology.
What is Blockchain?
Blockchain is a system or technology for recording information in a way that makes it almost impossible to alter, hack or spoof the system. A blockchain is practically a digital ledger of transactions that are replicated and spread across a computer network on the blockchain. Each block in the chain consists of multiple transactions, and each time a new transaction happens on the blockchain, a record of that transaction is added to each participant's ledger.
Blockchain technology could solve some of the major problems in the charity sector, and it could enable charities and non-profits to deliver results in an entirely new way that would be impossible without blockchain. Here are a few of them.
How Blockchain Improves Charity Funding
Cost of Transactions
Organizations in pursuit of efficiency savings may adopt blockchain, as blockchain has clear benefits in reducing transaction costs through efficient and secure processing. This will lead to increased investment among organizations to see how blockchain can improve the efficiency of supply chains, finance, voting, contracts, healthcare, and more. Blockchain cuts costs in a number of ways, so the public can have more confidence that their donations are being used for good causes.
Transaction Speed
Transaction speed will be improved significantly with Blockchain technology. Traditional ways take a lot of time and taxes to deposit the amount to the receiver, but blockchain can do the work instantly, with the minimum fees.
No involvement of 3rd Parties
Blockchain also offers the benefit of increasing public trust in charity. This is through the decentralized nature of the blockchain, so there is no dependency on third parties for financial transactions. Transactions are owned and maintained by their users rather than by banks and other third parties.
Trust and Management of Funds
Managing donations more efficiently is another benefit for charities, as well as improving trust with donors through the ability to be able to track and trace transactions via the blockchain. Blockchain adds transparency to the system and it will give donors many more reasons to trust the organizations.
Donation of intangible Assets
Charity organizations can look at a variety of ways blockchain can be used. This includes donating intangible assets such as intellectual property. Blockchain can help people and organizations in many ways, we just have to dig deeper.
Opportunities for businesses
Blockchain can help these charity projects through self-governing smart contracts that provide opportunities for businesses to give to their organizations and help charities raise funds.
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Original Source: https://vocal.media/theChain/how-blockchain-is-improving-charity-funding