Could Blockchain be a game changer for Foreign Aid?

Could Blockchain be a game changer for Foreign Aid?

By Paul Straker | Useful Blockchain | 23 Jun 2021


"The UN estimates 30% of all aid ends up in the hands of corrupt institutions..."

(PA Consulting).

That's a pretty shocking statistic.  Yet Blockchain could change that.  To be clear, I don't mean donating crypto.  I mean using Blockchain tech.

Aid is often either distributed via food, vouchers, or cash. But security of all these items is difficult. 

Governments and aid agencies are starting to realise a Blockchain could improve security, and several trials have taken place.  The theory is that Blockchain technology could help ensure aid gets directly to recipients, cutting out intermediaries. 

The fact that the data on a Blockchain is decentralised, and auditable, means it becomes difficult (not impossible) for any central authority or third party to take control of it.  

In 2017, a successful test run saw 10,000 war zone refugees directly receive food vouchers via a Blockchain.

However, development is slow. Recent articles suggest that whilst there are some great initiatives (Cryptonews), it seems total Blockchain involvement in Aid is in the low millions.  Which is a fraction of the global resources in use.  It's not clear at this point why further development has not really taken off.

However, given the need for Governments to demonstrate effective use of resources, surely Blockchain has a major role to play in the future?

 

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Paul Straker
Paul Straker

Crypto Newbie...


Useful Blockchain
Useful Blockchain

"Hold on lads, I've got an idea..." Nothing wrong with trading/investing. But, what if we could use the Blockchain concept to solve real world problems. Socially useful Blockchains...

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