A Blockchain based Fund Management Scheme for Financial Transactions in NGOs

Abstract

Background: In the world of the latest technologies, the blockchain is one of the popular techniques for stopping fraudulent activities. Non-Government Organization (NGO) is increasingly being used to support all the needy people across the globe to shape the world’s responsibility towards society for sustainable development. The existing method of donating money and its monitoring is facing a major corruption problem in several world-renowned NGOs. A Blockchain can transform the way the current business of money transaction is being done in NGOs. The blockchain-based application works on the concept of a decentralized system. Methods: This article presents a blockchain-based transaction system to prevent corruption and money laundering in NGOs and government fundraising organizations. A smart contract has been designed to stop any illegitimate block changes during a financial transaction. Since every node has a copy of the ledger, so it is very difficult to perform malicious activity. Furthermore, the donator can watch how the money flows in the different transactions and everyone can browse the account history. An evaluative judgment, comparing with various consensus algorithms, has also been presented along with their complex nature. The decentralized approach has eliminated the chance of a single point of failure which in turn makes the system robust. Results: The developed framework for the financial transaction using blockchain has been tested using the Rinkeby Test Network. The generators and campaign contracts have been developed and deployed in the Rinkeby testing network. The results indicate that the computing is much more secure and free from the scam in comparison to the traditional client-server financial transaction system. Conclusion: Finally, the proposed approach suggests scenarios such as in NGOs where the introduced security approach should prove to be adequate.