Many donations don’t do what charities say they will. A lot of it is because of corruption, and even former UN General Secretary Ban Ki-moon, estimates perhaps 30% of giving aid does not reach its destination. It’s actually probably more.
Charities are starting to use blockchain to boost giving. UK charities recently stated that they would do a trial with Disberse, which is a blockchain startup.
Other such projects are underway. The World Food Programme started a blockchain-based effort in Jordan. Meanwhile, the United Nations asked for blockchain startups make themselves known in order to rebuild systems and start new ones.
The idea is that blockchain, by accounting for donations across many nodes, will be more trustworthy than the old way of doing things. The trouble is that even when blockchain is used by major nonprofits it does not guarantee less corruption.
Corruption can take place with or without blockchain if people really want to pursue it. UN groups, for instance, can indulge in corrupt practices regardless of blockchain implementation.
The best way to shut down corruption is to start new efforts that have little to do with what came before. Blockchain can help but ultimately it is up to that staff and others that work with the charity.
Blockchain can help but it is only the beginning.
blockcitynews.com