Recently, Blockchain technology has become more widely known due to the success of Cryptocurrency. Blockchain is a decentralized computer network that is transparent, secure, and with continuous development, the potential of the next generation of Blockchain is even higher. Can solve problems and increase efficiency for other industries besides the Cryptocurrency industry.
At the same time, it is worth noting that the number of volunteer organizations inviting crypto donations has grown so large that campaigns have taken place around the world in just a few days. At this point, everyone must carefully observe which organization the account accepting donations belongs to. Or trust it or not before donating.
In the past few years there have been many issues regarding the lack of transparency in fundraising, such as misuse of donations. Failure to clarify account details as well as raising many questions about the value of the donations that have gone down. These problems arise from actions through multiple intermediaries and unclear agreements between donors and recipients.
Processing through multiple intermediaries. This often prevents the donor from tracking all the actions. Most donors, therefore, have to “trust” the recipient to act in good faith. For example Celebrities announced they are accepting crypto donations to help firefighters through their bank accounts. People also trust and make large donations through their bank accounts. After that, the account holder started to withdraw money at the bank and gradually bring the money to buy various factors to give to the officials. It can be seen that there are two intermediaries between the donor and the donor: the bank (trusted) and the star (maybe untrusted). It may open a channel for fraud to occur, such as refusing to show the total donation amount or transfer of money before disclosure, etc.
Crypto Donations Transparency:
It can be seen that the real problem is “Transparency”, therefore, the use of Blockchain with donations is a solution that is suitable for all parties. The donor can track the results. The recipient can receive the money in full. Although not all intermediaries can be eliminated because they may have to donate through charities, if using Smart Contract on Blockchain, then you can rest assured that the donated money will reach the donor according to the conditions of the smart contract that can be checked. In addition, donations can be received from all over the world by paying a fee at a very low rate Make donations reach more recipients.
Some of the charities that are implementing Blockchain include over flow Platform, an Ethereum-based charity fundraising platform that delivers donations only after a set goal has been achieved, or The World Food Programme, a food aid program of The United Nations uses Blockchain to monitor the situation of each region and deliver funding.
Blockchain technology is characterized by being transparent, secure, and sometimes able to reduce costs. The benefits of this technology are therefore not limited to cryptocurrencies or cryptocurrencies. Blockchain can be widely applied to other industries.
In addition, today’s blockchain technology continues to be developed. It is therefore interesting to see how new forms of blockchain will be used in the future.