Blockchain for Social Impact: Increasing Trust and Security in Social Projects
Many people and companies today want to help others and invest in charity, but they are afraid that the money will go not to those in need, but scammers. Blockchain for Social Impact is emerging as a solution to this problem. This technology assumes completely transparent record keeping. It allows you to track all financial movements, the purchase of medicines, and other goods for the needs of the population.
What is Blockchain and how does it work in the area of Social Impact?
Blockchain is an innovative database that works in a decentralized manner. It allows you to check various data and store it unchanged. It originally appeared in 2009 and was designed to carry out financial transactions with bitcoin. Today it is used in almost all areas, because it helps prevent corruption and fraud, and makes it possible to work as transparently and legally as possible.
Even in the most developed countries, the government must constantly work to maintain social trust. The fact is that no matter how good an initiative you put forward, there is always a risk that the allocated money will not go towards its implementation. Blockchain reduces such risks to zero and allows you to do good.
Which companies specialize in Blockchain for Social Impact
Today 2 powerful platforms tackle Blockchain for Social Impact.
Blockchain for Social Impact Coalition (BSIC)
Blockchain for Social Impact Coalition is a non-profit organization that, using technology, tries to solve environmental and social problems. Its main goal is to create links between government, philanthropists, and investors to solve really important issues.
Today it deals with such problems:
- supply chain;
- environment and energy;
- human rights;
- control of government purchases and orders
- help to talented scientists;
The activity of the organization is carried out within the framework of the United Nations Sustainable Development Goals.
Consensus blockchain for social impact
Consensus blockchain for social impact is managed by Consensys. This organization was created to comprehensively support various initiatives aimed at improving the environment and solving social problems. It collaborates with the Ethereum community, which makes it possible to achieve goals at times faster. This concept allows it to enjoy all the benefits of cryptocurrency and earn extra money that can be sent to charity.
In general, we can say that the organization focuses on the same problems as BSIC, but solves them in slightly different ways.
Blockchain for Social Impact Global Summit
On June 4, a large-scale Blockchain for Social Impact Summit took place, bringing together more than 100 different organizations from around the world. The agenda included the following topics:
- issues of impact on climate;
- health and wellness;
- financial inclusion in the least developed countries;
- displaced populations and disaster relief.
Blockchain for Social Impact Conference aims to get more and more companies to stick to the results of the 2019 UN General Assembly, where they discussed how best to promote Sustainable Development Goals (SDGs) and build a more peaceful, fair and prosperous world.
Benefits of using technology
The Regulatory framework to use Blockchain for Social Impact is currently only in development, but not all countries in the world are ready to switch to this mode of operation. However, all the bills that are currently being created are guided by the SDGs.
Risk reduction and fraud prevention
Corruption in many countries has become a huge problem that does not allow it to develop properly. Blockchain makes all financial transfers as transparent as possible. The peculiarity of the system is that it is impossible to change the data in it, therefore, forgery of documents is completely excluded.
Officials of any level and attackers will no longer be able to sell goods or services and put money in their pockets. The less risk there is, the more investors agree to invest. The idea is that people are more willing to invest in something that they understand well and know that they will not be deceived.
Reduced administrative costs
Many charities spend huge sums of money on administrative expenses - salaries of a large staff of specialists, paper, stationery, communal payments, and much more.
If companies keep all the records in the blockchain system, then it becomes possible to minimize the cost of administrative services. Electronic document management allows them to work without loss due to the human factor.
Also, the administrative costs of many companies include paying fees for financial transfers. The blockchain does not take commissions for its work, which also helps to save a lot.
During the coronavirus pandemic, a huge number of companies switched to work remotely, which helped them to refuse to rent offices. If a charitable organization reduces the cost of its existence, then it can give more to the benefit of those in need.
Transparency and simplicity
Blockchain for Social Impact NYC is created in such a way that you get the most complete information about all transactions that were carried out in the system. Noone can change the data here, the blockchain is currently the most fraudulent system.
It is chosen by companies that want to work as transparently and honestly as possible, that charity and social problems are of paramount importance, as investors must be confident that the money will go to the agreed needs.
Practice shows that trust plays a huge role in such matters.
Instant international transactions
For international business, it is of the utmost importance that all remittances take place as quickly as possible. Many banks offer to reduce the size of the commission by reducing the speed of the transaction.
The blockchain allows companies to perform any international transactions in a matter of minutes, but it does not take a large commission.
Another advantage of such transfers is that companies can easily provide a full report on them to their investors and partners, which will create even more trusting relationships.
Social sectors where blockchain can be useful
If initially the blockchain was developed exclusively for the financial sector, today it can be used in all areas. There are some examples where it has already proven itself well.
Blockchain is a database that can not only state some information but also make predictions, control the stock of goods, and has many other useful functions.
Agriculture is the type of critical infrastructure on which the lives of all people on the planet depend. Some farms are already starting to use blockchain technology to build more trusting relationships with buyers. Suppliers can indicate what goods they buy to raise livestock or groceries, what fertilizers they use, indicate the results of laboratory tests, and much more. If a person sees that the company offers high-quality, environmentally friendly products, then the probability of purchase is several times higher. This allows the agricultural sector to develop faster.
Another point is the transportation of goods. Tracking deliveries and predicting profits with blockchain becomes much easier.
Democracy and governance
A huge number of countries today are far from democracy. Government agencies make decisions based not on the needs of the population, but their ambitions.
If you connect such institutions in the blockchain system, you can get information about how it works, how it distributes government money. Taxpayers must know what their money is going for, then they will not evade taxes.
Energy and environmental issues
Not so long ago, the automobile company Ford began to use blockchain to report to the government and consumers on the number of emissions into the environment. If every manufacturing giant can honestly declare the number of emissions and prove that they are within the norm, then all residents of the country will be able to breathe deeply. This applies to emissions into air and water, into the soil.
Blockchain for Social Impact 2021 is widely used in healthcare. Covid-19 vaccine company Pfizer uses this technology to track shipments. This is because everything here is as transparent and understandable as possible.
Most countries spend billions of dollars on healthcare to provide their populations with the medicines and vaccines they need. As a result, this industry is one of the most corrupt in the world. Blockchain allows to make all purchases as transparent as possible, as well as track who receives medicines. It can save millions of people all over the world/
Philanthropy and assistance
Now in the world, there are millions of people who need clean water and food, clothing, normal education, and healthcare. Philanthropists and charitable organizations are ready to help them, but they want to receive guarantees that the money will go to a good cause.
The blockchain allows them to track all financial transactions down to a cent. As soon as the money goes to the wrong accounts, they will know about it and they can stop funding the action.
Many charities and philanthropists are already using blockchain to make the world a better place. There are some examples.
Free lunches for children
Accenture Labs and Akshaya Patra use blockchain to implement the Million Meals project. It involves providing free meals to schoolchildren in the poorest areas of India.
Thanks to this technology, it was possible to establish an uninterrupted supply of ready-made meals, to prevent theft.
Facilitating aid to developing countries
Germany uses blockchain to control aid in Burkina Faso. In particular, with the help of this technology, it is possible to control the supply of water, to monitor the money laundering of the government of the country.
The data obtained allow attracting additional donors, this allows the region to develop faster and solve the most pressing issues with food at times faster.
Even though blockchain was originally conceived for the financial sector, today it has huge implications for Social Impact as well. With its help, you can increase trust from buyers, partners, and investors, which has a beneficial effect on the industry as a whole.
Among the main advantages of this technology are data truthfulness, invariability, ease of processing. All data specified in the system is publicly available. If a company wants to operate openly and legally, then blockchain technology will be an excellent solution for it.