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Blockchain technology is primarily intended to eliminate corruption and opacity through a lengthy and difficult-to-trace transaction process. As a result, by its very nature, blockchain technology solves one of the most serious issues in charity: trust and transparency. Another benefit of blockchain technology for charity work is that donors can track the life cycle of their donations because every transaction is recorded without the risk of data fraud. Blockchain also helps organizations to avoid dealing with numerous accounting work thus increasing work efficiency.
When it comes to funding for the social sector, the situation is similar. The true impact can be hazy and difficult to measure. Transaction costs are usually high, in addition to the lack of transparency. Blockchain appears to be a viable option.
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