BLOCKCHAIN FOR GOOD: Can it be done?
Can blockchain technology help bridge the thorny gaps of aid disbursement to the neediest? Can blockchain be used to develop long-term projects in the local and international development sector?
A 2017 Asia-Pacific report by the United Nations concluded that the region is the world’s most disaster-prone, and that a person living in the region is five times more likely to be hit by a natural disaster than people in other regions. In Vietnam, El Niño contributed to an increase in dengue fever. In Indonesia, it also raised the risk of forest fires and the toxic haze affected more than 40 million people.
In the Philippines, a country that is very vulnerable to natural disasters, the problems with releasing funds to the most affected people have cropped up time and again.
In 2016, the Commission on Audit (COA) released a report saying that the Philippine Coconut Authority (PCA), among other government agencies, failed to properly account for over PHP 2 billion in funds for Typhoon Yolanda victims. COA pointed out that the PCA lacked specific timelines in their MOA for PCA’s Yolanda-related projects, and cited poor project planning as well.
Government misuse of funds is nothing new in the Asia-Pacific region, unfortunately, but with the rise of the blockchain in the last few years and the emerging interest from major institutions and banks like USAID and the World Bank, there are encouraging signs for using cryptocurrency and the blockchain for charitable giving and financial aid transparency.
How can public and private organizations determine if they need a distributed ledger technology (DLT) like blockchain? First, we can define what a DLT is, and their different types.
Types of distributed ledger technologies
The USAID’S Primer on Blockchain identifies a spectrum of DLTs, which can fall under 2 categories:
- Permissioned or permissionless; and
- Public or private
Permissionless DLTs can let anyone perform functions in the network without being vetted, and a public, permissionless DLT has data that can be viewed and auditable. Fully private, permissioned DLTs must have users identified before allowing them to make any kind of function. Regardless of which DLT groups choose, changes and functions can still be traced on the blockchain.
Determining and developing pilot projects
In the same primer, USAID lists several projects and applications across the blockchain universe that show where the initial investments are happening, such as:
Food supply chains, where DLTs are piloting food contamination tracing;
Public asset registries like land titles, which is being tested in the Republic of Georgia;
Medicine supply chains, to trace US prescription drugs and protect consumers from stolen, counterfeit, and contaminated drugs.
The World Food Programme is also testing a new way of cash-based transfers using the blockchain in Syria, Jordan, which they piloted in 2017.
As exciting as the blockchain space is becoming, it’s also necessary to step back and establish a clear understanding of the problems that need solving. It’s important to look at the metrics and the data of these pilot projects and see if a multi-faceted approach using blockchain and existing technologies is possible.
One question for those wanting to use blockchain in the development community is how to get multiple actors (government agencies, citizen watchdog groups, etc) agree to a collective standard, including legal and regulatory processes, a hard and necessary part of blockchain birthing pains.
Crypto for good organizations and studies
There’s been more good news coming out about crypto-philanthropy donations and how giving to charity platforms such as Give Directly can help impact the lives of world’s poorest. Charity Digital News UK reports that a research collaboration between BitGive and the University of Edinburgh was announced, a project that will “examine BitGive’s blockchain-based platform GiveTrack’s past implementations in Indonesia, India, and Kenya to investigate the feasibility, utility, and acceptance of cryptocurrency in these regions”.
The real work is just beginning in this space, and sharing key data about pilot projects around the world can help devise the next steps for the development community. (Further reading)
XONIO use cases
In the same vein, XONIO is looking at leveraging the possibilities of the blockchain for donations and charitable giving through the XON Store. Transparency-based donations via the blockchain can help ensure your donations are tracked and sent directly to your targeted recipients in need.
Blockchain-based donations seem to be where the road is heading, and while the research is still in the early stages (scalability, cost), there are heartening signs that this technology can be the beginning of better things for the development community.
For more info, visit www.xon.io. Join the community on Telegram.
