This Spring Festival, novel coronavirus has been a test for us. The battle epidemic situation in the front of Wuhan has always affected the hearts of 1 billion 400 million compatriots throughout the country. Caring people around the world have also started the work of love donation. One by one, the “Wuhan refueling wechat group” contacted hospitals, materials and logistics to donate. They blacked their eyes, but found that the front-line hospitals are still in shortage of materials.

The reason is that there must be something wrong with the “transmission” of the intermediate link, which is the Hubei Red Cross Society and Wuhan Red Cross Society responsible for material distribution. On the afternoon of February 4, three leaders of Hubei Red Cross Society were held accountable, and Zhang Qin, member of the Party group and full-time vice president of Hubei Red Cross Society, was dismissed. Such a decision does not seem to make the public pay the bill completely. Many netizens questioned that “if the limelight goes too far, the problem of the Red Cross will still happen”.

According to the data of charity Blue Book: China charity development report (2018), the amount of charitable donations in China increased continuously from 2013 to 2017, and had exceeded 150 billion yuan by 2017, but how much charitable funds were used? The epidemic situation in Wuhan has once again pushed the Red Cross, the leading charity, to the forefront of the storm. Its essence is the “transparency” of the industry.

The factors hindering industry transparency are not only the “industry ethics” that most of us think, but also the tracking cost, supervision cost and information publicity cost.

Blockchain technology may be the solution to the current dilemma.

1. Public welfare test of blockchain

Public welfare is also regarded as an important application scenario of blockchain technology. In the blockchain white paper jointly released by China information and Communication Research Institute and trusted blockchain in October 2019, it is mentioned in the section “key exploration in the field of government affairs and people’s livelihood” that blockchain will be mainly used in personal data services, social welfare services, etc. in the future.

The blockchain technology is used to establish an open, transparent and traceable system in which the donor and recipient (interested parties) can query the beginning and end of each payment. The information can include the number of times of distribution and the way of use, which can be implemented to each link. When blockchain technology links all donation information, such a system can effectively reduce differences and improve efficiency.

In addition, blockchain technology can also use the tamper proof feature to authenticate the identity of the recipient, so as to prevent some ill intentioned people from cheating charitable organizations by forging information. The tamper proof nature of blockchain will continuously increase the crime cost of fraudsters, so as to curb these phenomena and distribute the charity money to people who really need help.

As early as 2018, 11 platforms including Tencent commonweal, Taobao commonweal, ant financial commonweal and JD commonweal began to try to use a series of technologies such as blockchain for management innovation.

On December 30, 2019, the first “automatic payment” on ant blockchain was successful. It is understood that the beneficiary of the first blockchain automatic disbursement is a senior one student from Aba Prefecture, Sichuan Province. His mother takes care of him and two old people by farming. Based on ant blockchain technology, the total amount of 1500 yuan of financial aid took less than one day from the payment initiated by public welfare institutions, financial audit to the completion of student collection. According to the traditional audit process, this donation will take at least one month.

How to use blockchain technology to prevent charities from being evil

How to use blockchain technology to prevent charities from being evil

Aiyou Charitable Foundation launched the blockchain rescue publicity platform in August 2018, and the technology is supported by Wanxiang blockchain. In the “information disclosure” item of the official website, you can find the “blockchain”. On this page, we can see that the blockchain records the real-time donation, and the list on the right shows the donation date and amount. Click any donation in the list to see the block packaging information of these donations.

How to use blockchain technology to prevent charities from being evil

In addition to blockchain technology, digital currency has also been cited in Global Philanthropy. In July 2019, Qian’an charitable foundation joined 46 organizations to form a global alliance to issue “pink coin”, which is the first “value stability coin” issued to solve menstrual poverty in the blockchain, representing the care of the whole blockchain industry for women’s health“ The “pink coin” is released on the coin security chain. The price of each token will be anchored with a girl’s one-year sanitary napkin supply, rather than the “price” of US dollars or RMB. This reflects the essence of cryptocurrency: promoting the barrier free flow of value. The currency security Uganda legal currency trading platform will provide exchange service for “pink currency”, and suppliers can exchange Uganda shillings on the platform.

2. The chain process is still a problem

Han Hong mentioned earlier in the interview that “the whereabouts of a bag of instant noodles can be publicized”. The meaning behind this sentence is a criticism of the traditional donation system. Back to the actual scene, if you want to register the source information, transit transportation cost calculation, distribution method, all records and publicity of a packet of instant noodles, the cost probability during the period will exceed the value of instant noodles itself.

Therefore, the reason why charities lose credibility is the result of the lack of coordination of various information. Whether it is internal supervision and audit, cost dilemma and imperfect organization, it has caused great trouble to the development of the industry.

With the world’s recognition and encouragement of blockchain technology, it is expected to solve the current development dilemma of public welfare industry. The application of blockchain technology in the charity industry can well improve the charity atmosphere of the whole society and enable more volunteers and donors to contribute to public welfare undertakings.

However, in terms of the current development of blockchain technology, there is no big problem to achieve such a completely open and transparent system. What is more worth thinking about is how to reduce the cost of information chain, ensure the authenticity of information chain process, improve the efficiency of information circulation, and make charity more fast, transparent and accurate.

The cost of blockchain is only a means to break through the existing technology, and it also needs to break through the relevant technologies on a large scale. Fortunately, blockchain technology gives us a choice and possibility.

Responsible editor: CT

Leave a Reply

Your email address will not be published. Required fields are marked *