The public welfare and charity industry frequently has a crisis of trust. How can the blockchain realize charity supervision?

Recently, Wu Huayan, a poor female college student in Guizhou who was only 24 years old and weighed only 43 kilograms, passed away due to illness. The fact that the relevant charities raised millions of dollars for her but only allocated 20,000 yuan has once again revealed the chaos in the field of public welfare and charity. heated discussion.

According to Beishu Blockchain, there are many problems in the management and use of donations in 9958. For example, many patients have already passed away due to illness, but the platform did not close the donation channel in time and is still accepting donations. What is incredible is where did the rest of the charity money go? Since then, the China Children's Charity Relief Foundation involved in the incident has responded and confirmed the above remarks; but as of press time, the use of subsequent donations has not been made public.

For a long time, black-box incidents such as unidentified donations and fraudulent donations in public welfare projects have frequently caused the public to lose trust in charities. Traditional public welfare is based on manual processes and limited sharing of information, which also increases the cost of public welfare audits, and there are many problems in fund management and information recording:

1. The review of information submitted by recipients is not strict enough, making it difficult to identify true and effective personal information and donation items;

2. The process of raising and using money is difficult to be transparent and open, and project parties can easily embezzle funds in violation of regulations, and even project fraud;

3. Public welfare funds first enter the account of the central organization, and then are operated and processed by the organization. Multi-level operations increase the cost of the project.

The best "good medicine" for charity - blockchain technology

The distributed accounting, decentralization, and asymmetric encryption of blockchain technology reconstruct the trust mechanism in a technical way, which is conducive to solving the problems of information disclosure and transparency of charitable organizations, and will change the information disclosure mechanism in the charitable field. The donation tracking mechanism, the government's information supervision mechanism and the audit mechanism for charities, charitable organizations will undergo changes in their positioning and business focus, relationships with stakeholders, operating models, organizational finances, and information disclosure.

For charity, the openness and transparency brought by blockchain technology can ensure that donors can clearly and inquire about the flow of their funds; the immutable feature can also ensure that financial information will not be tampered with; anonymity can also protect Donor Privacy. It is also possible to introduce smart contracts at the bottom of the blockchain technology, so that the rules for the use of charitable funds have been written to death before donations, which can ensure that the funds are used exclusively.

For charity platforms, not only can it improve the credibility of the platform, but blockchain technology can also simplify the process in the middle and reduce the operating costs of charity. Therefore, blockchain technology can be without charity, but charity and public welfare cannot be endorsed without the technology of "transmitting value" such as blockchain.

How to combine blockchain and charity?

1. Public welfare on the chain

Using the characteristics of blockchain technology such as traceability, non-tampering, and data encryption security, the whole process of information and behavior in the process of public welfare and charity is realized, and the stage traceability and audit of the whole cycle of public welfare and charity are realized. Realize the whole-process management, tracking and supervision, and effective supervision of all parties participating in the public welfare charity network, avoid human factors from reducing the efficiency of public welfare charity, and at the same time provide public welfare charities with means to control risks and judge the effectiveness of public welfare charity projects, which will help realize All parties involved in the public welfare charity network form an effective joint force.

In the process of public welfare and charity, the use records and transfer process of public welfare funds are registered on the blockchain to store certificates. The records are open, transparent and cannot be tampered with. The society and the public can trace the whereabouts of funds. To achieve a high degree of transparency in the entire public welfare charity process, effectively solve the corruption problem in the public welfare charity process, and ensure the safety of funds.

Through the block browser, users can see the relevant information recorded, provide retrieval and search functions for each piece of data, and the public and supervisory agencies can verify at any time to ensure the openness and transparency of public welfare and charity projects. At the same time, the blockchain is programmable, which can effectively make up for the lack of manual verification and tracking of funds in the current charity process, improve operational efficiency, and reduce operating costs.

2. Digital Public Welfare

By making good use of digital assets and digital wallet tools, charitable projects can expand the boundaries of donations and accept digital currency donations. In addition, combined with the Token economy, charity tokens are similar to the concept of "work points". Users earn "work points" through donations, participation in public welfare activities, and participation in charity purchases. The "work points" obtained by users can be used in the charity ecology.

There are several ways:

1. The project operator (public charity organization) can connect with some e-commerce platforms or service platforms, and "work points" can be exchanged for goods or services.

2. Cooperate with the community and some other social welfare organizations. "Work points" can be exchanged for some benefits, such as library membership, community service exchange, bonus points for qualification examinations, etc.

3. Smart Public Welfare

Integrate technologies and concepts such as big data, blockchain, artificial intelligence, crowdfunding and crowdsourcing, and apply them to public welfare and charity, making the public welfare and charity system more orderly, efficient, transparent and complete. In the actual operation process, use big data technology To solve the problems of information collection, collation, and docking, big data technology can draw a "charity portrait" for users, analyze the regional distribution, work information, behavior information and other characteristics of the crowd, and provide data decision-making support for the planning of public welfare and charity activities. Use the programmable features of the blockchain to reduce management costs, operate artificial intelligence technology to improve the efficiency of precision charity and expand the scope of charity.

Application cases of public welfare utilizing blockchain technology:

1. The China Relief Foundation and Ant Financial Services jointly launched the blockchain charity fundraising project "Hearing Impaired Children Reborn".

2. Ant Financial Charity uses blockchain technology to track fundraising, and establishes a third-party publicity system for publicity of blockchain capital flow, which provides convenience for public welfare organizations to conduct data statistics and track project execution.

3. Huodui public welfare teamed up with Zhongan's technology base to realize the Jiuzhaigou Earthquake Public Welfare Fundraising.

4. Easy to raise Sunshine Chain, based on blockchain technology to collect donations and distribute them to sick people (such as leukemia).

5. Tencent uses the multi-node deployment of the alliance chain to find people for public welfare, and links WeChat, 404 family search, baby home and other systems to realize information exchange.

6. Baby Home initiated and applied Microsoft's AI face recognition technology to find lost children.

7. Beautiful China and Jingdong Public Welfare jointly realize the donation of materials for schools in remote mountainous areas based on blockchain.

8. ThoughtWorks, based on the Internet of Things equipment to realize the research and development of care equipment for left-behind children.

At present, personal information leakage is very common in China, and some parties involved in charitable public welfare projects do not want their information to be disclosed. The use of blockchain encryption technology can better protect the privacy of donors and donors. Only those who hold the private key of the project can see the information about the project, and others cannot obtain the detailed content of the project.

We have reason to believe that in the future, blockchain technology will be applied to public welfare, endowed with more functions, and optimize and innovate transparency, privacy and security. People will be more enthusiastic about participating in public welfare projects, rather than worrying about whether they are being cheated. There is still a long way to go for blockchain public welfare in the future. I believe that building such a high-trust public welfare ecosystem will better reflect our original intention of public welfare.