Cryptocurrency Use Cases In Charity Fundraising And Donations

INTRODUCTION

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What is cryptocurrency? If I was asked this question I would start by saying that cryptocurrency was the dream and design of a man or group of men who had the vision and hope of creating a new means or medium of exchange one that was digital and completely decentralized and inorder to do so sometimes was needed and that was a mechanism a tool that could securely keep records of all transactions carried out with this cryptocurrency.

With this the blockchain technology was introduced and created, it was basically a revolutionary technology, an immutable and tamper proof ledger for storing and managing data and information of transactions carried out or processed using cryptocurrencies not only that, it still offered transparency, security, and efficiency the blockchain facilitated cryptocurrencies and helped it become everything Satoshi Nakamoto hoped for whe he, she or they created the first cryptocurrency Bitcoin.

The introduction of cryptocurrency facilitated and started a revolution in the world of finance and the economy as we know it, cryptocurrency provides a more efficient and advanced means of carrying out or executing financial transactions that is why today, in this post of mine we are going to be discussing and explaining some of the very important and significant ways in which cryptocurrency is transforming and making better financial transactions involved in donations and charity fundraising.

• INCREASING TRANSPARENCY AND TRUST

Anyone involved in charity fundraising and donations whether he or she is the giver or the recipient of the donations they all have one very important concern and that is that the money donated be used for what it was meant for and that at no one time did anyone along the chain of custody of the funds or donations begin to use them for his or her own selfish interests so it is important that in dealings like this that there be absolute transparency.

Not only transparency but it also offers traceability of the funds, cryptocurrency with its blockchain technology which is basically a decentralized and immutable ledger addresses this concern by basically making sure that every donation or funds received is recorded on the blockchain without fail and it is traceable and cannot be altered, ensuring that anyone using the funds is to be held accountable if it is not used as intended.

Additionally, this transparency offered and facilitated by the blockchain and cryptocurrency network basically helps to foster and strengthen the trust of donors in the charity organizations they are making the donations and contributions to, also it enables, allows and provides the charity organization with the opportunity to also show and demonstrate their commitment to accountability and as a result building a good reputation and attracting more donors.

• EFFICIENT TRANSACTION PROCESSING AND LOWER TRANSACTION FEES

Cryptocurrency and the blockchain network is known for its efficiency and speed in processing transactions and also at very low costs too unlike the traditional donation platforms, especially when it comes fundraising done over or across borders or for international transactions, the transaction processing fee can be very high and as a result even discouraging individuals who want to make this donations.

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Before the creation and introduction of cryptocurrency the traditional means of facilitating financial transactions and making donations or raising funds was through bank transfers and credit card donations which are often subject to high processing fees that reduce the amount reaching the charity it also took time to process the transaction receiving or cashing a large amount of cheque for example would take time.

But like I said earlier cryptocurrencies help address these issues by basically offering a cost friendly or effective alternative by significantly minimizing or reducing the transaction processing fees and reducing the transaction processing times, this is very important especially particularly cross border donations and transactions this lower or reduced cost of transaction processing is especially beneficial during times of crisis or disaster when immediate funds are needed to save lives.

• ENHANCED SECURITY PROTOCOLS

The old or traditional charity fundraising and donations often pass through multiple or different intermediaries, before it gets to where it was originallynintended to go to as a result increases the risk of fraud or mishandling of the donated funds but with the introduction and implementation of cryptocurrencies which has very advanced cryptographic security protocols and a resilient decentralized structure, the risk or threat of any such fraudulent activity is reduced.

Additionally, we also have the blockchain based smart contracts which can be employed and implemented so as to automatically enforce the terms and conditions for donations, with the use of the smart contract one can ensure that funds are released only when certain conditions, such as project milestones, are met this approach therefore also minimizes the security risk of handling funds therefore providing donors with peace of mind.

They can be rest assured that their contributions will be used according to the intended purpose with all that has been said you will therefore agree with me that cryptocurrency transforms the process of charity fundraising and onations basically by offering a secure way for funds to reach their destinations safely even in the most hostile of countries or regions in the world.

• ENCOURAGING AND FACILITATING MICRO DONATIONS

Additionally, another way in which cryptocurrencies have transformed the process and method of charity fundraising and donations is by basically facilitating and paving the way for micro donations, where by donors can contribute whatever they have no matter how small it is and it will make a difference seeing as the cryptocurrency is not challenged by high transaction processing fees, this is especially useful in crowdfunding campaigns, where multiple small contributions can collectively make a significant impact.

By facilitating micro donations cryptocurrency basically enable and make it so that every sort of people from all sort of economic backgrounds can make donations and contribute to causes they care about, charity organizations can leverage and take advantage of this and transform the charity process by launching campaigns that encourage smaller, more frequent donations, which will help increase the overall participation over time.

CONCLUSION

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In conclusion, to all of you who as a result of making out time to go through this post mine have read part if not all of the post I hope you enjoyed reading it and I hope you were able to learn a few things seeing as in the post I just finished discussing and explaining four of the significant, important and notable ways in which cryptocurrency is transforming and improving on charity fund raising and donations I hope you were able to learn a few things.