Blockchain Can Bring Transparency Revolution to Charitable Giving

Although the news may depict a fractured and broken society, the amount given to charities in the United States quietly surpassed $400 Billion dollars in 2017.

In fact, the amount committed to support charitable organizations has continued to reach record levels in dollar terms for three consecutive years and is largely driven by individuals who make up over seventy percent of total giving.

But despite the billions of dollars in giving, the amount provided to charities Americans feel passionate about has not been able to expand beyond two percent of GDP. A simple way to say that is charitable giving is not growing.

The truth is, Americans want to give but they have some inherent issues with the manner in which they donate their hard-earned money as well as a straight lack of trust in charitable organizations that have operating with limited transparency and accountability.

Related: Outrage as Amazon Drops Alliance Defending Freedom From Charitable Giving Program

Now with advancements in the latest in technologies such as blockchain, industry subject matter experts such as myself are confident that blockchain based technologies can be the missing link to provide the transparency and accountability that charitable organizations need and donors want.

For individuals unfamiliar with how a blockchain technology database works, it is a quite simple but complicated link of mathematically proven data points which at its very core is decentralized and not owned by one single party of the system.

In its most famous example, the cryptocurrency Bitcoin, users contribute their own computer processing power in order to perform the cryptographic calculations necessary to maintain the ledger and ensure its security.

What makes a blockchain so unique? It comes down to the blockchains ability to create a trust maximized system in which transparency and openness are the norm and not the exception.

Specifically, with a blockchain based system users have the ability to view any transaction at any time. Having this capability to see all transactions at all times integrates a level of trust unheard of in todays closed off and “walled garden” approach for software companies.

Related: Gates Foundation, Warren Buffett, Others Should Worry About Donations to Clinton Foundation

Not only is a blockchain system transparent and open for maximum auditability and verification purposes, the blockchain has the ability to power executable computerized contracts between two or more parties that are programmed into the code.

These super contracts are called “smart contracts” and they only execute when predefined conditions

Source:: LifeZette

      

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