Despite being widely known for being the driving factor behind digital currencies, the applicability of distributed ledger technology transcends beyond the crypto space. Currently, people are leveraging blockchain technology to solve issues that challenge them in their daily livelihood. For instances, BANKEX is relying on this nascent technology to create a lasting solution for the insufficiency of clean water worldwide.
The Problem: Shortage Of Clean Water
While most of the earth’s surface is covered by water (70%), only a measly 3% is fit for human consumption. The remaining capacity often necessitates intensive purification procedures which require colossal amounts of money to accomplish. As a result, a vast majority of people are forced to resort to using impure water that comes with a load of potential health hazards.
Additionally, the constant increase in global population has an adverse impact on the available freshwater sources. Due to declining number of natural clean water sources, many regions across the world are on the brink of facing a water crisis in the future. According to the World Economic Forum, the demand for freshwater in 2030 will be overwhelming, a statistic that highlights the gravity of this matter.
In an attempt to combat the water shortage menace, the UNICEF allocates billions of dollars annually towards the improvement of water, hygiene and sanitation projects worldwide. However, these efforts are not entirely practical, as an approximated 1 billion individuals still do not have access to clean water. The reason behind the inefficiency is the presence of stringent bureaucratic regulations that inhibit the actualization of projects. Also, some managers trusted with the development funds usually embezzle the money, leading to the premature collapsing of projects.
The WaterCoin Project
As mentioned earlier, BANKEX leverages blockchain technology to establish a solution that seeks to restore transparency and guarantees the fair use of funds meant for humanitarian causes. The WaterCoin project uses a cryptocurrency (WaterCoin) that facilitates the donation of funds towards the creation of clean water initiatives around the world. Since it is a utility token, WaterCoin is exclusively used within its native ecosystem.
Initially, a single WaterCoin will go for $0.02, a rate equivalent to the price of one liter of piped water. During this period, a $1 donation will contribute 50 liters of clean water, since other charges such as service fees are not levied.
The Pilot Project (Narok, Kenya)
The pioneering phase of the BANKEX WaterCoin clean water initiative is based at Narok, Kenya. Funded by direct contributors from all over the globe, this project currently serves over 1,000 individuals with 10,000 cubic meters of healthy drinking water. The absence of intermediaries within the BANKEX project ensures that the needy feel the positive impact of this initiative. To donate to this cause, the only requirement is to buy WaterCoin tokens. Since the Narok branch is the pilot, it will serve as the blueprint for subsequent WaterCoin establishments in other areas.
To access the WaterCoin clean water, residents of the Narok are required to undergo the KYC process, during which their water need levels are evaluated. Afterwards, the clients are issued with NFC smart cards which usually cost less than a dollar. Recently, NFC technology has ousted QR codes as the favored mechanism of identification. Typically, NFC cards are safer and affordable since they do not require a mobile phone to work.