The blockchain technology is in full effect, and they are not just changing the face of many trades, but they are also transforming the way different sectors interact with industries from supply chain management to data security and even far off fields like advertising. Blockchain technology is positioned to bridge the gap between different sectors and improve transparency. Blockchain technologies will significantly improve industries with the donation and charity systems being more accessible to track and understand the shortcoming of current donation systems.
There are a good number of different industries today that it can be very tasking to find any common grounds. Only death and taxes are certain and common. But one thing that seems to be common across many industries is their participation or willingness to participate in charity and donation programs.
This is great for society, but it comes with one issue: there is a serious dearth of transparency in donation systems, and this inevitably leads to corruption and sooner than later, the public will lose trust in the system. This has a negative spiral effect on future donations and organizations aren’t as willing as they used to be.
Changpeng Zhao, CEO of the cryptocurrency exchange company “Binance,” is close to the issues surrounding this lack of transparency and he has some opinions of his own. “It was quite hard to push money to the ultimate beneficiaries–to identify who they are and who needs help,” Zhao says. This is mainly due to the opaqueness of the donation system. Not many people get to see where exactly all of this money is going to.
“Everyone sees one layer of the transaction,” Zhao says. “The people who donated to us trust us to make good use of the money, but they no longer know where the money went until we publish that report.”
Zhan is worried that this will stop people from being open to donating. “In addition to being worried that the money may or may not be put to good use, the lack of transparency also reduces the sense of personal achievement,” he says. “If you can see where the money is going, that will help a lot regarding personal feelings of achievement–so that’s very important.”
Making Charity Systems A little more open
Zhao insists that using the blockchain technology in the charity space will lead to more efficiency and a more open system that will improve on the chances of donations reaching those who are in the most need of it.
“When it comes to the BCF program, we aim to focus on transparency through this tracking portal,” Zhao says. “We want a completely transparent system.”
At the heart of this commitment is the desire to move the progress of the UN Sustainable Development Goals
“Looking at the UN Sustainable Development Goals, the first few in the list could all be easily enhanced with a more transparent charity program,” Zhao says. “This increased transparency will prompt people to donate more, and that will help a number of the initiatives including poverty, health, quality of education, gender equality and more.”
Instead of fighting for one specific charity, the BCF is hoping to compete for all charities with the help of the blockchain charity platform.