When donating to a charitable effort or even a foundation, almost half of people believe that the funds will never reach their final destination. Scandals keep arising in the news over the total amount accumulated for various causes, and how much of the financial support ever reached the reason for the funding in the first place. Even the American Red Cross has been criticized after receiving $500 million in funding towards the Haiti disaster, which they only used to build six hours.
In the event that funding isn’t overwhelmingly mishandled, the actual spending is often not what it should have been. Considering that the charities in many countries are not required to publicly offer their financial statements, donors may have difficulty making an informed decision, if they choose to donate at all. Somehow, charity is still one of the few ways to help vulnerable individuals get the help they want, and the implementation of blockchain technology could make a major difference.
The best part about blockchain technology, in this case, is the transparency of the blockchain. Donors can send their contributions with a blockchain platform, and they will be able to see exactly where their money goes, from one end to the next. Even though this concept has yet to become a mainstream practice, there are multiple efforts that have already implemented it, AidCoin.
AidCoin, which has recently been publicized by supermodel Kate Moss, aims to make charity a transparent industry, which could easily be achieved with the use of blockchain technology, cryptocurrencies, and smart contracts. Their platform, AIDChain, manages the fundraising process, while all donations are managed directly on the blockchain as stablecoins, which means that their value does not change. Charities, in this sense, reduce the volatility risks that are typically associated with cryptocurrency.
One of the most recent campaigns involved Vivienne Westwood and t-shirt design. Through the reward of a Westwood t-shirt, consumers were urged to donate to an effort called Cool Earth, which has already saved millions of acres of the rainforest so far. The auctioning experience proved to be a helpful way to bring in funding and to get celebrity exposure. Other supporters have included Celine Dion, Kate Moss, and other major celebrities that have contributed themselves and have used social media to urge others to get involved.
After the campaign ended, the crypto was moved to the Cool Earth ERC20 wallet, using AIDChain as a way to track it. The company provided the following image to demonstrate the donation redistribution:
Along with supporting Cool Earth, AidCoin has also been a major form of support for projects like Alice for Children, which made it possible to purchase a power generator for a Nairobi-based school. To follow along with other efforts by AidCoin, follow their blog at https://medium.com/@aidcointalk.