While Bitcoin is the most popular application of the blockchain, the potential for the technology is far more extensive. Philanthropies, non-profit associations, social ventures, and government offices are starting to investigate how they could utilize the innovation to propel endeavors going from reestablishing land records to helping individuals who need sufficient proof of identity for legal purposes.
How the Blockchain Could Solve a lot of Problems
We have identified four primary zones that nonprofit and social associations should efficiently deliver to convey their primary goal: moderateness, responsibility, consistent quality, and attractiveness.
The incredible @aidtechnology is using #blockchain technology to develop a secure platform for aid distribution, as well as providing refugees with legal identification cards. Check out its work here: https://t.co/Qkau4LqO2l #NT100is5 pic.twitter.com/XXyYE2aoeR
— Social Tech Guide (@socialtechguide) December 21, 2017
They should be straightforward and responsible to a public that requests ever-more poignant investigation of their activities. They should guarantee a dependable stream of financing to keep programs working. Also, they should advertise themselves to potential benefactors, partners, and customers.
So how does Blockchain help with these endeavors?
In the first place, it helps efficiency by diminishing expenses and waste in currency transactions. It also empowers entire value chains by executing and sharing data in a trustworthy, effortlessly auditable way.
The innovation also enhances responsibility and moderates misrepresentation by offering greater transparency over an organization’s entire operation. These advantages also provide more incentive for potential donors and other generous financing sources.
The Change Brought to Nonprofits via the Blockchain
At current, the philanthropic blockchain applications have massive potential, yet most are still in their pilot stages. Social organizations must understand these ramifications, however, to scale up the innovation.
It’s up to the organization’s leadership to explain their long-haul vision for the group – and estimate what they have to do to accomplish it. At that point, they have to adjust the whole value chain with this vision in mind. In making bits of knowledge accessible, a blockchain can enable executives to concentrate on scaling operations.
Second, a social organization needs to turn to financing. Working with experienced industry players and utilizing open source solutions can give an advantage and cut down expenses. On the other hand, an organization could also assemble a proprietary blockchain arrangement and make it accessible to different agencies, and thus generating another revenue stream.
Lastly, organizations need to recognize the significance of a feedback loop in successful leadership. By gathering ongoing input from schools, the group can not just track the results of their work, but can also find solutions to improve. Aside from enhancing a non-profit’s primary objectives (i.e., clean water, education, food provisions), Blockchain enhances an organization’s participation recording, receipts, and request preparations.
Most importantly, the ability to accomplish goals in a social organization lays in trust. This value comports the energy of the system and should carry a firm closer to achieving its central mission. All of these objectives, especially within a non-profit organization, make Blockchain technology an ideal opportunity.