With the world being in constant peril, funneling money to help people is more important than ever. The problem is that donating money frequently involves a middleman organization, usually creating a protracted process in monetary transfers. We’ve certainly seen our share of charitable organizations being called out for not getting donation money to the right places.
While this shouldn’t stop us from giving to charity, the U.N. understood digitally transferring money to troubled regions doesn’t always work well. This month, the U.N. is going to take a brave technological step forward by using blockchain technology and Ethereum cryptocurrency. They’ll be using this to funnel money to Jordan for the World Food Program.
Making Money Transfers Safer
One of the concerns with digitally transferring money to countries in need is keeping the privacy of those accepting aid. These people obviously want privacy, and there isn’t any way to keep data private with a normal network.
With hacking so prevalent, personal information from families in peril could become compromised. Also, funds might become delayed going through the middleman of banks. This doesn’t include being unable to confirm if funds were actually sent.
The U.N.’s commitment to using blockchain is going to prevent all these issues, assuring money reaches places needing humanitarian aid.
The Track Record of the U.N. With Blockchain
This isn’t the first time the U.N. used blockchain to distribute money through the World Food Program. They did the same earlier this year through a pilot program. In the project, they ushered in using Ethereum to distribute aid to people in Pakistan.
Success with this now sets the stage for U.N. to reinvent how all organizations distribute money for charitable purposes. Reports are the U.N. is going to continue using blockchain with new strategies. Some of this may include donating money to local food stores to cut down on red tape.
What’s most encouraging is the World Food Program expects to help 80 million people per year using blockchain.
Using Blockchain in Other Charitable Organizations
Unfortunately, we’ve seen so much skepticism on whether charitable organizations actually send donated money to people who need it. Blockchain can remove this problem thanks to being a digital public ledger. If there’s ever any disputes, the technology provides complete transparency on anything sent or placed in a database.
As a peer-to-peer type of network, people can get funds instantly without having to wait during times of crisis.
We can all agree that would make the world a better place in overly troubling times.