Blockchain for Philanthropy

Abstract

Blockchain technology has gained popularity due to its decentralized nature and strong security properties. While blockchains are widely known for their use in decentralized cryptocurrencies, they can also be used in other innovative applications such as smart contracts, asset ownership records, cross-border payment solutions, and exchange finance. Blockchain technology’s unique public verifiability and the ability to be controlled by a trusted third party have made it increasingly attractive to the online charity community. However, charitable organizations often face issues related to fund misuse, inadequate audits, and scandals, leading to a decline in public trust. This paper proposes a solution that promotes transparency in charity operations using public blockchains, such as Ethereum. The proposed system ensures the secure transfer of funds between various actors in charity operations, promoting trust and security. Additionally, the system allows for the wider availability of goods and services to beneficiaries through smart contracts, escrow, and tokenization, providing an efficient and reliable mechanism for service providers, charities, and beneficiaries to operate. By utilizing a public ledger, the system enables the public to verify the transfer of funds between different actors in charity operations, promoting transparency and increasing public trust in charitable organizations. The proposed system aims to motivate effective philanthropy by building trust in charities, ultimately encouraging more significant philanthropic efforts. Adoption of blockchain technology by service providers, charities, and beneficiaries will further promote trust and security in the system. In summary, the proposed system enables secure and transparent charity operations that build public trust and promote effective philanthropy.