Role of Blockchain Technology in Philanthrophy

Abstract

Abstract: Our country has an excessive number of organisations, which deter individuals from donating since they are opaque and challenging to monitor. People frequently ponder whether giving to charitable organisations will affect their choice. Many non-profit organisations engage in unscrupulous business techniques to raise money. People's faith in charity has been shattered by these methods, which have also raised concerns about the reliability of charitable endeavours. Today's non-profit sector is highly concerned about transparency. By turning donations into digital assets and boosting trust in non-profit organisations, blockchain [1] and smart contracts [2] open up new opportunities for charitable giving. Now, donors can see the results of their donations, and charities can use crypto tokens [4] to encourage giving. In recent years, blockchain technology has become one of the most trending areas of technology. Specifically, distributed ledger technology has been used in the financial industry to create crypto currency and develop a new digital market sector. Despite this, blockchain with its immutability and transparency has a much wider range of potential applications. Blockchain technology has the ability to significantly alter the charity industry. Increased responsibility and confidence in charitable donations may result from blockchain's decentralised and transparent nature. The usage of blockchain in charity is examined in this research article along with its potential advantages, including greater accountability, increased efficiency, and increased transparency. The absence of regulations, technical complexity, and cost are some of the difficulties that must be overcome. The use of blockchain technology in philanthropy is significant and merits more research to ascertain how it may be most effectively incorporated into current systems to enhance the philanthropic sector.