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Opinion: How blockchain technology can reduce risks and lower costs after disasters (Devex)

October 30, 2018

By John Schellhase

From the article:

Among the many disruptions created by blockchain technology, the most profound may come in the way aid is delivered to people whose lives are upended by wars, famines, and natural disasters.

The influx of aid following a disaster shows the power of human generosity. Sadly, corrupt officials and middlemen often see it as an opportunity to enrich themselves at the expense of the displaced. The Center for Global Development estimated last year that about 5 percent of global aid, or $8 billion, is lost to theft and corruption each year. Measured against disaster victims’ relatively modest needs, it is a staggering sum.

Blockchain-based distribution systems won’t eliminate corruption, but their ability to confirm identity and execute secure digital transactions can ensure that a larger proportion of aid will reach its intended recipients.

Blockchain technology promises to change the way we store information, confirm transactions, exchange money, and protect our identities. The transparency and security of blockchain, or distributed ledger technology, can increase trust and lower costs for a variety of programs and projects. This is particularly true in countries with a weak or underdeveloped legacy of telecommunications and financial infrastructure.

Read the full article here.

 

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