#Business29 Aug

Bitcoin For Charity

Nikolay Korinets

Blockchain and cryptocurrencies are revolutionary in so many ways. The innovative technology has a huge impact not only on our financial routine but also on charities all over the world.

Blockchain and cryptocurrencies are revolutionary in so many ways. The innovative technology has a huge impact not only on our financial routine but also on charities all over the world. Blockchain solutions are there to reduce excessive financial and legal intermediaries and cut the operational costs for charitable organisations. Decentralised and direct transactions make it easier to facilitate donations and get aid money to where it is needed.

A few high-profile charitable organisations have implemented Crypto-philanthropy. For example, Fidelity Charitable who received about $69 million in cryptocurrency donations. Blockchain Charity Foundation (BCF) is another greate example. The fund is aiming to transform philanthropy using a decentralised charity platform.

Crypto donations bring some notable features and advantages for charitable organisations all over the world. To name a few:

  • More transparency: every blockchain-based transaction is unique and can be easily tracked. A new level of transparency and trust can encourage to donate more.
  • Blockchain networks are not supervised by the government or other institutions which automatically cuts off corruption and unnecessary intermediaries. Money can travel directly from donors to those in need, including fast international transactions, thanks to the decentralised nature of blockchain.
  • Smart contracts can eliminate high operational costs and ensure proper execution of payment; it will make sure the agreements and addresses are not modifiеed.

There are different ways to donate:

  • You can send a donation in cryptocurrency directly to a selected charitable organisation. There’s a growing number of global organisations like UNICEF, Save the Children and others who accept donations in top cryptocurrencies.
  • You can sign-up with services like TheHopePage. This website uses some of your computer’s processing power to mine cryptocurrency and automatically generate funds for UNICEF Australia. You can do that with your laptop by selecting the % of processing power you would like to share and keeping the webpage open. This will slow down your computer a bit, but it is indeed an exciting way to encourage crypto donations.

Several startups were launched to facilitate crypto donations, ensure transparency of payments distribution and bring the industry to another level.

Alice

Alice aims to show the donors the impact their money is making. The platform temporarily freezes donations until charitable organisations can prove that they’ve achieved their donation goals. The reason for this platform is to encourage more people to donate to charities while ensuring absolute transparency.

Bithope

Bithope was designed to promote charity via cryptocurrencies crowdfunding. There are several non-profitable organisations across the world which unite people who are devoted to fundraising to help those in need. Many of these organisations don’t have access to many donors, especially the international ones and they are not very skilled in marketing. Bithope platform gives small organisations the chance to receive a donation from global donors using blockchain technology.

GiveTrack

Give Track enables real-time financial transparency to create a great future of charity. Using the platform, you can donate and track your funds from any part of the world from the day you gave it to the final stages. We all know that the major problem with most charity organisations is the lack of transparency. With GiveTrack, you can support a charity without the fear of your money not being used for the reason you donated it.

Despite the significant advantages, there are some concerns when it comes to adopting crypto-philanthropy:

  • Market volatility: this is a number one concern about cryptocurrency whether we talk about investment, payment or donations. Most of the coins are being traded, and are subject to the large swings in value.
  • Security: if the private keys are not managed and stored securely, malicious individuals can access the wallet and steal the funds.
  • Public understanding: most people out there still find blockchain challenging to explain. Therefore many potential donors don’t understand cryptocurrencies well enough to trust the entire system and use it for charitable donations.

However, the same challenges are faced by pretty much every crypto enthusiast and we’ve learned to deal with them. So this shouldn’t stop you from donating some of your crypto.

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