One of the most important and interesting developments in recent weeks is the ability to move foreign aid onto the blockchain. Hack the Future of Development Aid is a study that is attempting to deliver rights to the poor and speed up aid transfers. Three institutions are spearheading the effort; the Ministry of Foreign Affairs in Denmark, the cryptocurrency exchange Coinify, and a think tank called Sustainia.
Undoing the Tangle of Intermediaries
Denmark has also declared its first technology ambassador to deal with the new developments in the financial system and technology. Currently, Kenya, Nigeria, Ghana, and South Africa all have cryptocurrency ecosystems that are working to change money as we know it, as well as transferring citizens’ rights on to the blockchain. These countries are excluding banks from monetary transfers, and thus funds are becoming more available to developing countries.
In particular, the study looks to use Sustainia to develop new solutions to problems by using blockchain technology. Their hopes are high as they seek to combat corruption in monetary transfers flowing into poorer countries. This bypass of traditional issues with paper currencies is considered to be a “hack” of the old system. Denmark will be using these hacks to better transfer foreign aid to the countries that need it the most.
Payments on the blockchain will be easier to track and kept out of the wrong hands through total transparency. In India, for instance, land register bribes total a staggering $700 million, and with this system, those inducements can be significantly reduced.
The sequence of hacks specified in the study are the following; innovate (aid) money with cryptocurrency, turn rights into code on the blockchain, program aid money and agreements, and disrupt the aid model in general.
This technology will affect not only aid transfers but also a multitude of other sectors. These include secured voting, welfare, tax collection, business registration, venture funds, access to energy, and more. This blockchain is actively trying to solve the most extensive and pervasive problems through the power of global networking secured with advanced cryptography.
The declared goals lie in the idea that the world should be and will be decentralized; it explicitly states that the project is “anti-state.”
Hack the Future is looking to redistribute power from centralized bureaucracies in corrupt countries. From there, funds can be sent directly into the hands of the marginalized. This Blockchain effort can potentially create a peer-to-peer economy for those that can’t get ahead due to issues of massive government intrusion.
Not only this but citizens’ data, which is currently stolen and harvested by governments, will be stored securely in their own hands and transferred safely only to the places that they choose. This project is genuinely trying to bring about the utopia of which the masses have been dreaming.