Blockchain and Charities - How They Can Combat Corruption - Infinity Blockchain Labs

Blockchain and Charities – How They Can Combat Corruption

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March 27, 2018

The startup is aware of the problems surrounding the nonprofit sector. Contrary to for-profit companies, nonprofits do not have the chance to aggressively expand their market shares. These organizations are relying on a limited budget so they are not capable of launching huge marketing campaigns. Furthermore, donors generally do not like the idea of spending their money on advertisements.

Grace, a small startup organization, developed a blockchain-based platform where charities, donors and promoters can prosper.

Blockchain and Charities - How They Can Combat Corruption

Why blockchain?

Blockchain was called the technology pioneer by the World Economic Forum. Many financial experts call it “the next big thing after the Internet.” Some industry leaders think that the impact of this new accounting technology can be as significant as using double-entry accounting more than 500 years ago. Besides being faster than existing systems, Blockchain allows transparency in every transaction to be captured on a real-time basis. In fact, governments, all over the world, are considering Blockchain technology as a priority platform for e-Governance. (1)

Blockchain and Charities - How They Can Combat Corruption

Blockchain may be the only trust for the organization. Although Blockchain is public or private, all blocks are encrypted and can be read only using the correct decryption key. With its decentralized nature and its ability to resist change, Blockchain is the perfect companion for collecting and recording financial data. It can become a single source of trust of organizations. Using Blockchain, an organization can eliminate having to maintain multiple localized centralized databases. At the same time, Blockchain can also ensure real-time and continuous flow of information through an organization.

Using Blockchain, all logs are accessible to the public, journalists, police, and ordinary people. This makes the manipulation impossible. Thus, this fintech can give way to a completely open and global database. With millions of copies distributed on the Internet, it is not possible to forge or destroy data. Blockchain is a tremendous fintech innovation that can be very helpful in the fight against corruption.

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Can blockchain end corruption?

It’s a long way to blockchain as an anti-corruption tool, but according to a real-world study, Lina, based in Zurich, has come up with a bold proposition with MVP technology. Their unique purpose is to minimize unethical practices in the field of assessment. It can be seen that the value of the system that this system brings out beyond the scope of its assessment: data integrity, traceability and transparency. (2)

Blockchain and Charities - How They Can Combat Corruption

Grace, a small startup organization, developed a blockchain-based platform where charities, donors and promoters can prosper.

Grace abandons the traditional method of fundraising where charities have to do all the marketing. The startup created a platform on the blockchain. There are three types of participants: charities, in need to raise money for their cause, donors, the ones donating the funds, and the advocates who spread the news about the charities to attract donors to the cause.

Using the advantages of the blockchain, everything goes through smart contracts. The donation of the donors, who are conducting their transactions on the Grace platform, are held in smart contracts until the release conditions are met. According to Grace, the release conditions are specified during the creation of the campaign. Once the campaign is live, the conditions can be reviewed by the donor before a donation is made. This way, the donors can be sure that their money is in the right place. Furthermore, as the traditional charity fundraising is encircled by numerous problems, including corruption and fraud, using the Grace platform will get rid of these issues.

Blockchain and Charities - How They Can Combat Corruption

“Transactions on the Grace platform are recorded on the blockchain thus are transparent and immutable. Not only can the Donor be rest assured that the donations get transferred securely to the Recipient, the donations directly contribute to a ripple effect of positive impacts that delivers much more value than traditional donation methods – a realization of our manifesto. As well, Donors may apply for tax deductions with their donations. Grace makes it easy to retrieve relevant donation records, which are persisted on the network indefinitely,” Grace writes in its whitepaper.

Grace’s token sale starts on November 1, in which the organization will offer 80 percent of the Grace tokens for sale. The startup published a well-written, transparent budget allocation. Grace is planning to spend 20 percent on operations, 15 percent on legal expenses, additional 15 percent on security, 10 percent on marketing, 10 percent on network expansion, and 30 percent on research and development. Grace also published a roadmap. By Q4 2017, the private Alpha of the Grace web client will be released while the public beta will be released in Q2 2018. (3)

About Infinity Blockchain Labs

Infinity Blockchain Labs (IBL) is a visionary R&D company engaged in intermediary and RegTech services employing blockchain technology. We focus on forming alliances with established businesses and regulatory institutions across various industries, as well as providing collaborative incubation for early stage blockchain projects. We aspire to empower Vietnam to become a global leader in blockchain.

You can learn more about Infinity Blockchain Labs and stay current with our activities by visiting our website and social media accounts below:

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Contact: Nicole Nguyen PR@blockchainlabs.asia

(1) quillette.com

(2) huffingtonpost.com

(3) ccn.com

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