Is Investing in Cardano helping the world's poor?

Is Investing in Cardano helping the world's poor?


In my last article I answered the question if Bitcoin is bringing value to the world's poor:

https://www.publish0x.com/crypto-ethics/is-bitcoin-generating-value-for-humanity-xdgrzlg

"Especially the impact of financial accessibility on poorer populations brings a lot of moral value. We see it in Latin America and the acceptance of BTC as legal tender and the numerous partnerships and programms Cardano is setting up in Africa."

In this article I want to focus on Cardano because they have a focus on helping the poor.

Some critics might say that doing charity is great but the programms the Cardano foundation is setting up in Africa has little to nothing to do with their native crypto currency ADA. Therefore Cryptos don't really help the world's poor. Charity foundations do, but there is no need for a crypto currency. That is a good point so lets do a deep dive into Cardano, the Cardano foundation and ADA to see if the criticism is legit. 

The Blockchain

Cardano was founded by Charles Hoskinson in 2015 and is a public blockchain platform. It's open source, decentralized and is using proof of stake. It is open source and therefore very transparent . It is a fully-decentralised community-run network, meaning the community has control over its blockchain. And the proof of stake makes it a lot more energy efficient than Bitcoin. 

The Foundation

The Cardano foundation based in Switzerland oversees and supervises the development of the project. It's an NGO which also serves as an enabler for charity and donations to various projects in poorer countries manly Africa with the goal of banking the unbankend, solve problems of governments regarding registration of people, to verify student diplomas, to end voter fraud and many more use cases. 

The Cryptocurrency 

ADA is the internal cryptocurrency which allows peer-to-peer transactions and it is implementing smart contracts very soon. (The Alonzo tesnet was successfully forked in mid July 2021) The smart contracts would make a lot of the goals of the foundation technically possible. 

 

So we have the blockchain, the NGO and the cryptocurrency and they are all linked together and are bringing value to humanity in some Form or another. But could we have that effect without the blockchain and the cryptocurrency, only having a foundation or a NGO doing all the projects and charities? 

For example the NGO save the children in Rwanda now has a payment gateway that allows ADA donations directly to the project without intermediaries:

https://news.bitcoin.com/rwanda-based-ngo-partners-cardano-foundation-to-launch-ada-crypto-charity-platform/

The criticism could be that you don't need ADA to do that, you could do the same on the Ethereum blockchain with ETH as a currency.

But even if you could do it on every other Blockchain you still at least need one blockchain to make direct donations without any intermediaries possible. Smart contracts, verifying data openly on the blockchain authorized by code and not a third party like a government makes a lot of donations and charities possible or at least more cost-effective. 

So at least we can say that having cryptos in general helps the world. But do we need Cardano for that purpose?

I don't want to go into the technical details on whether ETH or ADA are better Tokens, which network is more secure or any of that kind. I think it is sufficient to know that both could do the job for the goals defined above. (Please correct me if I am wrong) For the sake of the argument let's just assume that. Then there is still an argument you can make for having a separate token for a special cause. 

For example: Charles Hoskinson tries to convince governments to work with him and use his crypto to make a digital passport. This would be a hard job because you would have to explain the benefits, the risks the cost and all the technicalities and the government would need to trust him with all that. Of course they would let experts check if all that is correct etc. But still Charles would have to do a lot of convincing. Let's assume he does not have his own crypto currency but still tries to convince the people to use a crypto currency. Even though he is not the founder of it, has no influence on it, his name and reputation is not directly linked to it etc. This would make it a lot harder for him to convince the people of the benefits using cryptos. So not having his own crypto would lead to him helping less people.

It basically comes down to brand loyalty. The reason why brands and marketing is working so good is because of the trust people have on certain Brands. They know and trust the brands and commercials and marketing remembers them constantly about this trusting relationship they have with the brand. How important branding can be in the cryptospace was perfectly shown by dodgecoin. Even if the technical fundamentals are not great, you can make it into a top ten crypto by putting a dog face on your coin and creating a brand as a dog coin or afun coin etc. (I am aware of the fact that Dodge was created as a joke and wasn't designed as a new brand by marketing experts, but it still proves my point) Before that branding was also important in crypto as you all know that BTC is the digital gold and LTC is the digital silver.

So having a brand in the crypto space that is known for helping the poor populations of the world can be a big factor. Cardano is that brand, Charles Hoskinson is the face of that brand and let's the people trust in the cause. So having that brand linked to the foundation, the blockchain and the crypto currency makes sense and is probably helping the cause a lot.

So Cardano and the way it is, probably helps the poor people in the world. But that doesn't really answer the question if it would help them when I am buying ADA. It probably would be more effective if I gave the money directly to charity. But with buying ADA I am supporting the brand Cardano. Rising prices of ADA will lead to more public recognition and therefore indirectly I am helping to make Cardano a bigger brand. So more people will trust Cardano as a brand which will also be profitable for the Cardano foundation and the people who receive help by the foundation.

And I will probably make a good return on my investment which I could then give to charity maximizing my impact. So the answer is yes I can help the world's poor indirectly if I am investing in Cardano.I am not saving the world but it is a little contribution and therefore already a morally good investment. You also don't have the same amount of energy consumption like Bitcoin, so there are not a lot of moral downsides when it comes to buying ADA but a lot of potential upsides.

If you like read, comment and share. I would love to hear your opinion on Cardano. 

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Sam from Crypto Ethics
Sam from Crypto Ethics

Hi my name is Sam, I am interested in everything about crypto and I have a phd in moral philosophy. Why not combining those two and discuss recent topics and general issues about crypto and ethics?


Crypto Ethics
Crypto Ethics

I am a moral philosopher with a soft spot for everything crypto. I´ll try to analyse recent and general ethical topics in the crypto space. Like, comment, follow and feel free to discuss with me.

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