Traditional perceptions of blockchain technology involve uses in financial technology and under the table transactions. Blockchain, however, has possibilities far beyond finance and digital currency. By its nature, blockchain provides unparalleled security and transparency. By creating a decentralized network of highly-encrypted blocks, a blockchain system creates a secure, unchangeable ledger. No one person can make changes and the encryption means that it is extremely difficult to hack, thus making blockchain one of the most secure and transparent technologies in the world. This technology has the power to revolutionize poverty reduction. Below are the top seven blockchain projects that represent the most successful blockchain for poverty projects that address real, pressing global issues.
Top 7 Blockchain Projects for Poverty
- Agri-Wallet: Agri-Wallet is a mobile app that allows farmers to remotely and securely receive payment for their produce and save money on business expenses. The majority of smallholder farmers do not have enough funding, both due to delayed payments for goods and a lack of access to credit. This is because banks are hesitant to lend to poor farmers that do not have a strong credit history or collateral. Through the blockchain financial ecosystem, Agri-Wallet allows farmers access to small loans and guarantees payment the first week of every month, which has been a major boon to Kenyan farmers. Agri-Wallet has already seen extensive success in Kenya, with approximately 4,000 farmers, 14 suppliers and 25 buyers using the app only one year after its large-scale release.
- Mojaloop: In developed countries, some may take access to banking for granted, but 1.7 million adults around the world do not have access to a secure banking system. The Gates Foundation sought to change this by releasing Mojaloop, an open-source solution that allows anyone to build financial services software, providing financial security through blockchain-based encryption. The key to Mojaloop’s importance is its egalitarian nature – a developer does not have to be connected to a major company or bank to develop technology using Mojaloop, and the code bridges all financial products and applications in any given market, providing unprecedented access to financial services for poor populations. The app has already gained the confidence of two of Africa’s largest mobile operators and the Gates Foundation estimates that it will reach 338 million existing mobile money accounts through the entire continent of Africa. In other words, this blockchain for poverty app could provide a flexible, universal banking system to 338 million people in Africa.
- Diwala: As of June 2019, there are more than 70 million displaced people worldwide fleeing war, persecution and conflict. The ability to join the workforce of refugee’s new home is critical for their integration into their new community and to rebuild their lives. However, when fleeing a war-torn country, it is difficult for refugees to retain certifications or diplomas. Diwala provides a secure, unchangeable digital resume that verifies a person’s skills, education and certifications that employers can rely on to provide an accurate record. The organization currently works with multiple organizations and universities to help issue credentials via Diwala to further verify education and certifications. Diwala is already bringing digital employment verification to Kenya and Uganda.
- BitGive: BitGive’s goal is to provide better transparency and accountability between donors and charitable organizations. The company’s blockchain for poverty product, GiveTrack™, allows donors to trace their donations in real-time to see exactly where their money goes. BitGive’s use of blockchain technology provides high-level security while also providing an unalterable ledger that donors can refer to at any time to ensure their money goes to the cause they want and see the real impact they are having on a community. The use of cryptocurrency also means that BitGive can quickly and efficiently transfer funds across the globe. The organization has seen amazing success, including partnerships with Save the Children and The Water Project.
- Goodr: According to the U.S. Department of Agriculture, Americans waste approximately 30-40 percent of the U.S. food supply, while 820 million people around the world suffer from hunger. Goodr provides blockchain-based supply chain management tools that allow companies, such as airlines, convention centers and other food operations, to redirect surplus foods to food-insecure communities. As an added incentive, Goodr provides companies with blockchain-based ledgers that allow them to track their food and identify areas of waste. During the 2019 Superbowl alone, Goodr rescued over 100,000 pounds of food.
- OneSmart: The World Bank considers government corruption a significant challenge in reducing global poverty, particularly because corruption disproportionately affects poor populations. In 2018, UNICEF funded OneSmart’s OS City project to combat corruption and bring more transparency to local and national governments. OneSmart created a blockchain platform that is flexible enough to be integrated with existing city management platforms, allowing for the implementation of blockchain and artificial intelligence throughout government to avoid waste and increase transparency.
- SOLshare: SOLshare seeks to help the 1.1 million people worldwide without consistent access to electricity. It is the first-ever peer-to-peer electricity trading network, allowing villages to create mini-power grids by connecting houses with solar panels to other homes in the neighborhood. The blockchain-based platform allows for the fast, efficient and safe transfer of funds between neighbors, allowing for local, independent electricity grids. SOLshare has already brought electricity to 65 million people in Bangladesh and is helping helps poor villages shape a greener future.
People limit the use of blockchain technology by relegating it to banking or shady online transactions alone. The above top seven blockchain projects show that blockchain has value as a tool to develop solutions for multiple global issues. A blockchain is a useful tool that can address multifaceted issues in fighting poverty. Though it is still an emerging technology, blockchain deserves widespread research and support.
– Melanie Rasmussen