Blockchain and Solving Society’s Problems
Typically associated with Bitcoin, blockchain holds under-utilized potential as a force for social good.
Blockchain is not a currency, though headline-grabbing stories about Bitcoin, Ethereum and other initial coin offerings (ICOs) have rendered it synonymous with the concept of digital currency in the minds of many users. Fortunately, knowing how blockchain works is not a prerequisite for using it — but a basic understanding can help you understand why it’s so important.
Don and Alex Tapscott, authors of Blockchain Revolution, succinctly summarized blockchain in 2015:
The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
Facilitating finances beyond currency is where blockchain’s untapped potential lies. A blockchain infrastructure enables “the internet of value.” Ripple, a blockchain startup that built a digital payments network for real-time financial transactions, describes the internet of value in these terms:
Our vision is for value to be exchanged as quickly as information… With the Internet of Value, a value transaction such as a foreign currency payment can happen instantly, just as how people have been sharing words, images and videos online for decades. And it’s not just money. The Internet of Value will enable the exchange of any asset that is of value to someone, including stocks, votes, frequent flyer points, securities, intellectual property, music, scientific discoveries, and more.
In Finland, the MONI Card is being used to give refugees the resources they need to start their new life. Blockchain offers exceptional, immutable record keeping which makes it possible to financially include refugees who are starting their new lives without credit or banking history. This ability to have a financial identity makes it possible for these people to find jobs, pay bills, and establish themselves much more quickly.
In Jordan, blockchain is helping distribute aid to Syrian Refugees. The World Food Program project uses retina scanners to monitor food distribution, which is recorded on a blockchain. This prevents aid from being dispersed to the wrong people, and better manages their data.
But, refugees aren’t the only ones without access to financial systems. Financial inclusion is a problem affecting at least two billion people worldwide, and it is arguably a cause of impoverished circumstances.
Estonia is proposing to use blockchain for identity, giving people all around the world the opportunity to be e-residents and access the services and infrastructure available to Estonian residents. Additionally, the ‘estcoins’ could allow investors around the world to invest in the development in Estonia. It would also give them a vested interest in the country’s growth. A secure digital identity gives access to resources for starting a business abroad which should prove to be very economically empowering.
Other government efforts aim to improve access to financial services in developing countries through blockchain. By facilitating secure registration of personal data these efforts significantly lower the barrier to entry for getting services to citizens that can economically empower them.
Blockchain is being applied in Kenya to root out dilapidated cars and stolen vehicles. It’s being used in Ghana to secure land ownership. And, yes, it’s even used to enable a gold-backed currency.
By tracking assets and identities, individuals are economically empowered through blockchain — and that’s something we should all be excited about.
LAYNE LAFRANCE is a blockchain focused Project Manager at AxiomZen. With a keen eye, and inquisitive nature, Lafrance has asserted herself as a fresh authority.
