Blockchain for charities: let crypto-philanthropy exist!
Of course, the sphere of charity does not have straight negative issues. Nevertheless, there are some of the supreme issues charitable organizations in the whole world face. There is the lack of correct management, transparency of operations, not enough governance or doing it in an incorrect way. Blockchain technologies are supposed to solve the mentioned problems. Moreover, Blockchain will help to manage funds of such organizations.
As regards one example of the mixture of blockchain technology and charity, this is the BCF (the Blockchain Charity Foundation). It is a really great example of integration. The BCF is a non-profit organization. Its main goals are to solve inequality problems, overcome and stop poverty, and set philanthropic principles on our planet. It can be done with the help of a solution that will give a possibility of simple receiving of donations as well as raising funds in a more efficient way.
Blockchain: basic information
Blockchain is a distributed ledger technology. Its greatest power is the ability to provide security, transparency, accountability, and efficiency for different organizations and companies. There is no necessity of trust, consequently. The attention is paid to privacy and efficiency thanks to Blockchain.
It becomes easy for customers to make peer-to-peer transactions. There is no need for worries. Without any doubt, it is impossible to make a joke of blockchain technology and cryptocurrency integration. The matter is that this integration was changing, is changing and will be changing the world in all possible directions.
What was all that about?
The matter is that Blockchain is a basic stone for every economic network. We can also say that it is a foundation. It is generally accepted that Blockchain was created by Satoshi Nakamoto. No proof of it exists, unfortunately. This technology can be found in a great number of spheres.
Consequently, it is useful not only in the crypto sphere but also in a great number of other directions regarding digital information sharing and intercommunication.
Almost all blockchains are distributed ledgers. Their main aim is to monitor, keep data and protect digital data with the help of cryptography. It is not only a set piece in the sphere of cryptocurrencies, but also a marvelous feature of any other industry and direction because of its decentralized and secure itself.
The name ‘cryptocurrency’ has stuck in our minds as a constantly developing and growing space. It is significant to find out the rules of its functioning and work. It will be useful in case of any potential issues. Having no necessity regarding trust and security, which is too expensive, any blockchain offers enough efficiency. It is certainly that the decentralized network can be considered a transparent database: it is seen for every who takes part in it.
Any transaction that is done via Bitcoin ledger is not situated on one information center and server. It means that such blockchain is distributed across billions of computer nodes in the whole world.
What does it mean?
Well, it is really simple and clear: if we confirm a transaction, or, for instance, change any information, all users have to upload an updated version according to these changes. It means that there should be an agreement among them
What is cryptocurrency donations?
According to the completed research, it is not fair to say that cryptocurrencies are adopted throughout the world. Well, it is not true. It is difficult to say when it will be adopted widely regarding the sphere of charity. Nevertheless, we can find a rising number of charitable organizations that have chosen cryptocurrency as a donation method.
If you are a donor, there are two possible ways for you:
- The first variant is just to make your contributions to the organizations that take crypto.
- The second variant is to offer big sums of money so that a number of organizations that support crypto donations will increase.
Perhaps this way will help to persuade charity organizations to include crypto into their politics.
Of course, there is a step, which every organization that wants to receive crypto donation should follow: it is a process in place for managing and dividing the funds only in a transparent and efficient manner.
If you think that it is important, the next step is to understand the main principles of donation conversion into fiat currency.
It is so significant!
Advantages of crypto-philanthropy
We can say for sure that crypto-philanthropy offers several extremely significant advantages regarding charitable organizations as well as donors. Let us tell you about some of these advantages, please:
1. Reduced expenses
Blockchain technology is able to make easier the method charities are ruled. They make some parts of the process easier and minimize all costs. It is done with the help of requiring fewer intermediaries.
2. Total transparency
Each cryptocurrency transaction is unique. It means that it is also easily tracked via the blockchain.
3. Digital agreements
Blockchain makes it easier to share and store digital data, and may also be used to ensure that important documents or contracts cannot be modified without the approval of all involved members.
4. Global and decentralized
Most blockchain networks show great levels of decentralization. It means that they do not need to be based on a centralized government or any other company.
Consequently, funds can be shared and transferred directly from donors to charities, and the decentralized nature of blockchain makes it uniquely suitable for international transactions.
Warnings and limitations
In spite of definite advantages, we can also list some disadvantages. For sure, they are potential and are not to be come across regarding crypto-philanthropy. Nevertheless, let’s have a look at them:
It is security
It becomes impossible to get access to donated funds if you have lost the private keys.
The keys allow access to these funds, so it is impossible to return them in case of losing.
It is public awareness
In order to understand it all, people should learn about the basics of cryptocurrencies.
Only in this case will they be able to do everything in a proper way.
It is volatility
It means that along with stablecoins, a great number of cryptocurrencies can be traded on very volatile markets.
In this situation they suffer large swings in value.
Please, be careful about the security of your keys (for example, their safe place): there can be a lot of malicious entities and can even lead to stealing the funds.
We strongly advise you to learn about the basics of the crypto world in order to do your best. Crypto-philanthropy is a relatively modern method of sharing, getting, as well as dividing donations. The donations fulfilled by means of crypto can help a lot of people because it is fast, comfortable and does not depend on your location.
In the future it is going to rise and be adopted by a lot of charitable organizations. If not absolutely all. Time will show. Now just enjoy and do good!